“Joe Biden’s campaign tried to reassure donors that the former vice president is on track to win the Nevada caucus and the South Carolina primary,” CNBC reports.

“The call left the donors feeling positive about Biden’s efforts in those two states.”

Josh Kraushaar: “The chaos of the Iowa caucuses on Tuesday night obscured an alarming reality for Democrats: President Trump now looks like a narrow favorite to win a second term in office.”

“The latest wave of national polls show Trump hitting or nearing all-time highs in his job-approval rating—even after weeks of impeachment proceedings. Gallup’s latest tracking survey showed his job-approval rating at 49 percent, tantalizingly close to an outright majority of the country. The president is delivering his State of the Union address amid a strong economy and growing consumer confidence. Nearly two-thirds of the country approve of his economic stewardship—the highest rating on this score in nearly two decades. Republicans look energized and united behind the president.”

“Meanwhile, Democrats face growing factional warfare between their progressive and pragmatic wings.”

Michael Bloomberg launched a new ad touting his ties to former President Barack Obama.

Rhode Island Gov. Gina Raimondo (D) is endorsing former New York City Mayor Michael Bloomberg for president, the Providence Journal reports.

Sean Trende: “We shouldn’t mince words here: Biden had an awful night. Yes, Iowa is a heavily white state, and it is a caucus rather than a primary, so it didn’t play to his strengths. Nevertheless, Biden is a former vice president to a very popular ex-president. He has universal name recognition and the implicit backing of large swaths of the Democratic establishment.”

“Yes, he can still recover in South Carolina, although that is looking much less probable than it did Monday morning. If his African-American support remains solid, he will perform well in the South. But his weakness among Northern whites is a red flag for states where he will need to win — and where he can’t rely on African-American support to push him over the top. If he’s coming in fourth place in Iowa, delegate-rich states like Wisconsin, Michigan, Illinois, and Ohio are likely to be challenging for him as well.”

“Looming over all of this is the question of money. All of the candidates spent heavily on Iowa, and Biden needs to replenish his coffers. Will donors stick with him through New Hampshire? Almost certainly. But how many underperformances can he turn in before they abandon him?”

Wall Street Journal: “In a sign of Mr. Bloomberg’s growing strength, he staged a rally in Philadelphia—about a mile from Mr. Biden’s campaign headquarters—that drew more than 2,000 people.”