Stocks pushed higher Wednesday as data surrounding the manufacturing sector was released. Increased faith in U.S economic growth and a patient approach by the Fed have helped stocks early on this year. Analysts remain concerned that slow economic activity overseas could impact the U.S economy, especially as trade talks continue between the U.S and China.
Bond prices are relatively flat, and the 10-year treasury is yielding 2.62%. Uncertainty around the eurozone growth has caused markets to swing. Now, with British lawmakers rejecting a Brexit Deal Tuesday, the U.K has cut its economic growth forecasts from 1.6% to 1.2%. Additionally, questions surrounding the Chinese economy and the trade negotiations has added to the already sensitive situation in Europe.
Orders placed with U.S factories jumped in January, the most in six months, signaling that demand is withstanding concerns of slower global growth. Non-military capital goods orders increased 0.8%. Forecasts only projected a 0.2% increase. The improvement in demand suggests a solid start to the year for manufacturers that should foster economic growth.