‘Look, everybody has a pain threshold, and you know when a stock becomes unmoored from valuations, [because] it has certain dynamic growth aspects to it and has cultlike aspects to it — you just have to walk away.’ — Steve Eisman about Tesla short

1. Chinese Leader Xi Jinping Called the Coronavirus a Major Test of China’s System of Governance — Mr. Xi told a special meeting of the Communist Party’s ruling Politburo Standing Committee there would be consequences for officials who shirk responsibility​ in tackling the crisis. the number of confirmed coronavirus cases in mainland China rose above 42,000. The death toll from the outbreak climbed above 1,000, while Hong Kong reported its first death from the pathogen. Macau moved to shut its casinos—whose revenues are more than six times that of the Las Vegas Strip—for two weeks. American health authorities reported a second case of passage from one person to another in the U.S., and raised the number of confirmed cases to 11. Companies, governments and schools are developing policies on the fly to try to halt the spread, creating a live global public-health experiment in containment.
2. State of the Union Address — President Trump touted his record in a lengthy and triumphal State of the Union. Ahead of today’s anticipated acquittal in his impeachment trial, the president used his annual address Tuesday to paint an optimistic picture of America’s future and present himself as the lead architect of the country’s economic boom. He avoided commenting on impeachment.The speech was punctuated by enthusiastic applause from Trump backers and mostly silence from Democrats; House Speaker Nancy Pelosi notably ripped her copy of the speech in half as Mr. Trump finished.
3. Disney Emerges as a Formidable Streaming Contender — the number of subscribers to the company’s new streaming service, Disney+, more than doubled in its first three months. CEO Robert Iger said older programming, ranging from classic Disney movies to seasons of “The Simpsons,” has been as popular with Disney+ subscribers as its new, original content such as “The Mandalorian.” Disney+ is already competing with Netflix, Amazon and Apple in the market. Netflix, the largest streaming platform, started offering streaming in 2007 and created a stand-alone streaming plan in 2010. It didn’t cross 28 million subscribers until late 2012, according to its financial statements.
4. Senate Acquits Trump on Both Impeachment Articles — the Republican-led Senate acquitted the president of charges stemming from his efforts to press Ukraine to announce investigations that would benefit him politically. The vote to acquit marked a clear victory for the president. GOP senators strongly supported his acquittal, but several said Democrats had proved that he acted improperly—though not in a manner deserving of impeachment—regarding Ukraine. Utah Sen. Mitt Romney was the lone Republican to vote to convict and remove Mr. Trump from office.
5. China to Cut in Half Tariffs on $75 Billion of U.S. Goods — China said it would cut tariffs on $75 billion of U.S. imports in half as part of efforts to implement a recently signed trade agreement with Washington. The tariff cuts set to take effect on Feb. 14 come amid growing doubts about Beijing’s ability to follow through on the phase-one trade deal, in which China has pledged to boost its purchases of American goods and services by $200 billion over two years.
The U.S. trade deficit narrowed in 2019 for the first time in six years, as disputes with China and other countries reduced the U.S.’s exports and imports while reshaping relationships with economic partners. Exports declined for the first time since 2016, dropping 0.1%, the Commerce Department said. But imports fell more sharply, decreasing 0.4%. That combination shrank the overall trade deficit 1.7%, to $616.8 billion. U.S. tariffs on roughly $370 billion in annual Chinese imports remain in place.

The week ahead — Economic data from Econoday.com: