Daily Market Color February 10, 2020Economic Impact of Coronavirus Worsens as Death Toll Surpasses 900 Coronavirus death toll rises to 900, more than 2003 SARS outbreak. Global cases have climbed to over 40,000- the vast majority of which are in China’s Hubei province. With many of China’s cities in complete shutdown, the economic impact of the outbreak continues to deepen as global supply chains are disrupted. Nissan, the Japanese care maker, has become the latest example of that disruption as it suspends production due to a shortage in car components sourced from China. While equity markets have by in large shrugged off growth concerns, Treasurys continue to show signs of skittishness, the 10-year yield sitting at 1.57% (only 7 basis points off recent lows). Friday jobs report shows US labor market remains strong. While the first quarter growth outlook for the US looks a bit shakier amid potential disruptions from the coronavirus, Friday’s nonfarm payrolls report confirmed that the labor market remains strong in the US. The US economy added 255,000 jobs in the month of January- significantly above consensus estimates and accelerating the pace of hiring to the highest levels since 2015. The breadth and pace of hiring will bolster the Fed’s confidence that current monetary policy is appropriate- making a Fed rate cut this year seem unlikely. Day ahead. Fed Governor Michelle Bowman will speak this morning at a community bankers conference. San Francisco Fed President Mary Daly and Philadelphia Fed President Patrick Harker will both provide updates on the economic outlook. This afternoon, White House official Russ Vought will present President Trump’s budget proposals, which could cut funding for numerous social programs. Democratic candidates are gearing up for their last day of campaigning before the New Hampshire primary tomorrow.