Stocks ended narrowly mixed Thursday in directionless trading with risk appetite held back by rising bond yields. The Dow Jones industrial average eased 0.1 percent, the S&P 500 edged up 0.1 percent , and the Nasdaq firmed 0.2 percent. US Treasury yields, the dollar and oil prices all rose.

Bond yields were pressured higher along with the dollar after an unexpected drop in weekly jobless claims, which suggested a more resilient employment market. That weighed on stocks and contrasted with other signs of job weakness, including the weak ADP employment report. Markets are still anticipating a Federal Reserve rate cut this month. Challenger layoffs data Thursday also showed a decline in job cuts from a month earlier.

Markets appear to be in a waiting mode ahead of the Fed's policy meeting next week, and ahead of upcoming earnings news. Among sectors Thursday, best were small caps, discount stores, banks, and aerospace & defense. Lagging were grocery stores, apparel, hotels, and homebuilders.

Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.

Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.