Stocks were flat to lower Tuesday in directionless holiday trading. The Dow Jones industrial average eased by 0.2 percent while the S&P 500 slipped 0.1 percent and the Nasdaq was also down 0.2 percent. US bond yields and the dollar were nearly flat and oil prices declined.

Minutes from the December FOMC meeting left markets unfazed as they confirmed perceptions that Fed policy is on hold after the last rate cut. Markets also did not react to news of a somewhat higher than expected rise in housing prices and a better than expected Chicago PMI report.

Weakness in momentum stocks held back the major indexes. Other weak sectors included financials, transportation, biotech, and retailers. Best performers included health care, real estate, energy and precious metals.

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.