“The markets are always changing, and the successful trader needs to adapt to these changes” — Michael Stainhardt

1. Yield Curve Inverted — the U.S. Treasury yield curve, measured by the gap between yields on three-month and 10-year bonds, briefly inverted overnight for the first time since October as Treasuries rallied for a sixth day. The two-year/five-year curve already inverted on Monday, while the gap between two-year and 10-year yields – considered a recession signal – was at the flattest since Nov. 29. “If the signs were to multiply, there could be a more severe impact not just in China but globally,” said Philip Shaw, chief economist at Investec. “Markets are starting to speculate the Fed could bring rates down by summer.”
2. Flights To/From China Suspended as Coronavirus Spreads — British Airways became the first global airline to cancel all flights to and from the mainland as the virus spreads beyond Asia. The U.S. expanded passenger screenings for the virus to 20 airports and is considering suspending flights to China.
3. Corona Virus Updates — the coronavirus has killed at least 165 people while infecting more than 7,000. The vast majority of those infected are in China. Corona virus has a relatively high death rate compared with something like influenza (though less than the related SARS outbreak nearly two decades ago). And it is centered in a densely populated part of the world where international travel is increasingly common. It’s also new. Public health experts cannot say yet how long it will last, how far it will spread, and how deadly it could get. Public-health officials say the virus and the respiratory ailments it causes pose little risk in the U.S., where only 5 cases have been identified. And while there’s evidence it’s contagious even in the early stages before symptoms show, it appears to be far less contagious than SARS, whooping cough or measles. In addition, the outbreak is disrupting businesses around the world, from banks to retailers to airlines. Global firms are working to protect employees in or planning travel to China, while also dealing with dropping demand and its potential economic impact. Investors who began the year feeling largely sanguine about the stock market are struggling to make sense of whether the growing outbreak could upend their bets on a global economic recovery.
4. UPS Aims for Driverless, Electric Future — following in the footsteps of Amazon (AMZN), which recently inked a deal for 100,000 electric vehicles from Rivian, UPS (NYSE:UPS) has placed an order for 10,000 electric vans (with an option for 10,000 more) from U.K.-based Arrival. The contract, worth “hundreds of millions of euros,” will also see UPS take a minority stake in the startup. Besides joining the EV revolution, UPS has driverless dreams. A six-month test will begin with Alphabet’s (GOOG, GOOGL) Waymo next month, using the latter’s autonomous Chrysler Pacifica minivans to shuttle packages from Phoenix UPS stores to a nearby sorting center.
5. FOMC Meeting — the Federal Reserve left its benchmark interest rate unchanged and reaffirmed its make-no-moves posture. Officials repeated nearly verbatim the policy outlook expressed in December, and offered a mixed assessment of the economic outlook. They described consumer spending as moderate, a downgrade from “strong” last month, and said business investment had stayed weak. Fed officials have, however, signaled that they see greater risks of surprises that could force them to lower rates.

The week ahead — Economic data from Econoday.com: