The potential for supply chain disruption as a result of China dealing with the Coronavirus, and almost a complete shutdown of their manufacturing economy, is looming heavy upon Wall Street multinationals invested in China.
However, tangentially related, as a result of USMCA we are now seeing signs of shifted investment into North America and increases in forecasts for U.S. manufacturing.

(Via CNBC) […] Early in the week, New York’s Empire State Manufacturing Survey for general business conditions posted a reading of 12.9, up 8 points from January and its best level since May. New orders surged to 22.1, the highest since September 2017, and shipments rose to 18.9, the best since November 2018.
On Thursday, the Philadelphia survey exploded 20 points higher to 36.7, the highest since February 2017. New orders hit their highest since May 2018. (more)

The Philadelphia FED tracks factory orders in eastern Pennsylvania, Southern New Jersey, and Delaware.  New orders in that region soared far higher than all expectations, reflecting a strong consumer-driven economy with ongoing purchases of durable goods.
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Today President Trump will deliver remarks on water access in Bakersfield, California. The president was in the valley earlier today for a fundraiser hosted by Oracle CEO Larry Ellison and will deliver remarks from Bakersfield at approximately 5:30pm ET.
White House Livestream – Fox Business Livestream – Alternate Livestream

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President Trump and Ecuadorian President Lenin Moreno deliver remarks to the press pool prior to a bilateral meeting in the White House. [Video and Transcript Below]

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[Transcript] – PRESIDENT TRUMP: Well, thank you very much. It’s great to be with the President of Ecuador — and it’s one of the most beautiful countries in the world — and perhaps equally as important, and maybe even more importantly, your great First Lady. Thank you very much for being here. This is a tremendous honor. Some of the most beautiful landscapes in the world and one of the most beautiful places on Earth, they say. I’ve heard that for a long time.
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Earlier today President Trump and First Lady Melania Trump welcomed the President of the Republic of Ecuador and Mrs. Rocio Gonzales De Moreno to the White House.
Ecuador is a key country for stability in central America.  A key topic of discussion between the two leaders will be Venezuela.  Ecuador is suffering firsthand the effects of Nicolas Maduro and his dictatorship in Venezuela with waves of economic migrants from Venezuela arriving through Colombia to Ecuador.   The refugee crisis represents a fiscal strain and also a security threat. There are 400,000 Venezuela refugees in Ecuador.

Counter-narcotics and a trade agreement are also a priority for this meeting. The United States and Ecuador are very close to a free trade agreement. USTR Robert Lighthizer has held a successful round-one negotiation for trade and investment with the Ecuadorian Commerce Ministry; and a second round is likely very soon.

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Ecuador and the United States are working toward an energy and infrastructure framework agreement under America Crece.  Brazil is likely to join in March and they will join Panama, Chile, Argentina, Jamaica, Colombia, El Salvador, and hopefully Ecuador.

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Earlier today President Trump hosted a business luncheon with U.S. governors to discuss economic expansion and administration policy efforts to assist the states.
[Video and Transcript Below]

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[Transcript] – THE PRESIDENT: Wow. Thank you. Thank you. (Applause.) Thank you very much. Thank you very much. Thank you. Thank you. It’s a great honor to have you at the White House, a very special place. Beautiful and so meaningful in so many ways. And our country has never done better. You’re all doing really well. Every state is doing well. I can say most every state in the room today is setting records. And we’d like to think that the federal government has been helping you a lot.
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Senator Tim Scott appears with Maria Bartiromo to discuss how President Trump delivers on his promises and relentlessly achieves results despite opposition. Senator Scott was the architect of the ‘Opportunity Zones’ policy to deliver private investment incentives for distressed communities. As noted in the interview, one of the outcomes from that successful initiative is an eight percent increase in wages within the zone. Good stuff.
During the segment discussing the State of the Union, Senator Scott notes the conduct of Speaker Pelosi was not the tearing of a speech, it was “the shredding a reality that this nation continues to rise to the occasion and we do it consistently.”   Discussing the fraudulently created impeachment; and the House effort to hide the ICIG testimony; the senator from South Carolina notes: “it’s a shame because it’s a sham.”

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White House trade and manufacturing policy advisor Peter Navarro appears on Fox News to discuss the strong January jobs report of 225,000 gains.  Navarro highlights something few pay attention to.  The Trump administration not only focuses on the macro policy principles to create the economic environment for job growth, but President Trump also personally engages on specific company, state, and regional efforts.
The engagement of a U.S. president to discuss and influence U.S. jobs on a company by company basis, and get down in the details of deals, is a completely unique political standard in the modern era.  President Trump is very uniquely fighting for each job.

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It is very disappointing to hear vulture capitalist Jeff Bezos having a disinterest in protecting American intellectual property rights, and instead choosing to accept/allow cheap Chinese, knock-off goods as the backbone of his Amazon business model.
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National Economic Council Director Larry Kudlow appears on Fox Business to discuss the excellent January jobs report.  Job gains and wage increases are all going in the right direction…. And Stuart Varney immediately asks: “do we need more immigration”?

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BLS Wage growth chart below [Table B3].
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President Trump will deliver his third State of the Union address tonight to a joint session of Congress.  The anticipated start time is 9:00pm Eastern.  Livestream links below:
UPDATE: Video Added

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Even before the Coronavirus surfaced in China there was lower manufacturing factory activity within the Chinese economy.  The necessary response within China to control the spread of the Coronavirus has been to shut down most commerce.  Factories, schools &  businesses throughout China are empty as various containment measures are underway.

The direct result of this response is a severe drop in economic activity.  Many analysts are speculating about how this cessation of production might impact supply chains that use Chinese component goods.  Obviously, with manufacturing facilities closed any downstream multinational company relying on those products may have supply issues as soon as existing inventories deplete.
There is a natural lag before the manufacturing void hits the consumer market; however, the financial markets are forward looking and they are already reflecting severe drops in stock prices, depending on the dependency/exposure of the company and/or sector.

BEIJING/SHANGHAI (Reuters) – Chinese stock and commodity markets fell heavily on Monday as the death toll from a coronavirus epidemic in China rose to 361 and investors retreated into safe-haven assets in the first trading session after an extended Lunar New Year break.

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