DAILY MORNING BEIEFING

The S&P 500 futures trade roughly in-line with fair value after the benchmark index gained 3.3% over the last two sessions. A revised stimulus plan has garnered attention, but there might be a wait-and-see mindset developing ahead of tonight's first debate between President Trump and former Vice President Biden. Regarding stimulus, House Democrats introduced a $2.2 trillion relief bill, versus prior talks of a $2.4 trillion plan. Treasury Secretary Mnuchin and Senate Republicans contend that $2.2 trillion is still too much to spend, but negotiations between the administration and House Democrats have restarted nonetheless, according to the Washington Post. On the data front, investors will receive the Advance August reports for Intl Trade in Goods, Retail Inventories, and Wholesale Inventories at 8:30 a.m. ET, the S&P Case-Shiller Home Price Index for July (Briefing.com consensus 3.9%) at 9:00 a.m. ET, and the Conference Board's Consumer Confidence Index for September (Briefing.com consensus 88.5) at 10:00 a.m. ET. U.S. Treasuries are trading slightly above their flat lines. The 2-yr yield is down one basis point to 0.13%, and the 10-yr yield is down one basis point to 0.66%. The U.S. Dollar Index is down 0.2% to 94.07. WTI crude is down 0.8%, or $0.31, to $40.29/bbl. In U.S. Corporate news: Square (SQ 163.00, +2.24): +1.4% after the stock was upgraded to Outperform from Peer Perform at Wolfe Research. IHS Markit (INFO 80.56, +0.50): +0.6% after beating earnings estimates. Host Hotels (HST 10.61, -0.32): -2.9% after the stock was downgraded to Underperform from Neutral at BofA Securities. Reviewing overnight developments: Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Japan's Nikkei: +0.1%, Hong Kong's Hang Seng: -0.9%, China's Shanghai Composite: +0.2%, India's Sensex: UNCH, South Korea's Kospi: +0.9%, Australia's ASX All Ordinaries: +0.1%. In economic data: Japan's September Tokyo CPI 0.2% yr/yr (last 0.3%) and Tokyo Core CPI -0.2% yr/yr (expected -0.3%; last -0.3%) South Korea's August Industrial Production -0.7% m/m (expected 1.9%; last 1.9%); -3.0% yr/yr (expected -1.2%; last -2.4%). August Retail Sales 3.0% m/m (last -6.0%) and October Manufacturing BSI Index 70 (last 68) In news: Nikkei reported that Japan will begin removing its coronavirus-related travel warnings in October. Some banks in China are reportedly limiting mortgage issuance. Australia's Prime Minister, Scott Morrison, said that Australia's next budget, which will be presented next Tuesday, is one of the most important since World War II. Major European indices trade on a mostly lower note. STOXX Europe 600: -0.4%, Germany's DAX: -0.4%, U.K.'s FTSE 100: -0.3%, France's CAC 40: UNCH, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: -0.1%. In economic data: Eurozone's September Business and Consumer Survey 91.1 (expected 89.5; last 87.7) U.K.'s August BoE Consumer Credit GBP300 mln (expected GBP1.50 bln; last GBP1.10 bln). August Mortgage Approvals 84,700 (expected 73,000; last 66,300) and August Mortgage Lending GBP3.10 bln (expected GBP3.80 bln; last GBP2.90 bln) France's September Consumer Confidence 95 (expected 93; last 95) Italy's August PPI 0.1% m/m (last 0.2%); -3.0% yr/yr (last -4.2%) Spain's August Retail Sales -2.4% yr/yr (last -3.9%). September CPI 0.2% m/m (last 0.0%); -0.4% yr/yr (expected -0.5%; last -0.5%) In news: EU officials are reportedly preparing the text of a trade agreement with the U.K., suggesting that the two sides are getting closer to a deal. European Central Bank President, Christine Lagarde, said that deflation in the eurozone is expected to continue for a few more months. Germany's Finance Minister, Olaf Scholz, said that Germany's debt-to-GDP ratio will increase to about 75%. U.S equity futures: S&P 500 Futures -5 @ 3340 DJIA Futures -36 @ 27446 Nasdaq Futures -45 @ 11349 Overseas: Europe: DAX -0.4%, FTSE -0.3%, CAC UNCH Asia: Nikkei +0.1%, Hang Seng -0.9%, Shanghai +0.2% Commodities: Crude Oil -0.30 @ 40.30 Nat Gas -0.060 @ 2.735 Gold +9.35 @ 1891.65 Silver +0.458 @ 24.062 Copper -0.0188 @ 2.9712 U.S. Summary: Earnings/Guidance (Full Earnings Calendar): AngioDynamics (ANGO) beats by $0.09, beats on revs; guides FY21 EPS above consensus, revs above consensus Big Lots (BIG) provides Q3 update; sees comps increasing in the mid-teens for the quarter; sees Q3 EPS above consensus IHS Markit (INFO) beats by $0.08, reports revs in-line McCormick (MKC) beats by $0.01, beats on revs; guides FY20 EPS below consensus, revs above consensus Papa John's (PZZA) reports "strong" North America and International comparable sales in September Radiant Logistics (RLGT) reports JunQ results, revenue rose 34.6% to $275.5 mln United Natural Foods (UNFI) beats by $0.34, beats on revs; guides FY21 EPS above consensus, revs above consensus; CEO Steven Spinner plans to retire General News: House Democrats introduce $2.2 trillion stimulus bill; Washington Post reports White House & House Democrats have restarted talks, but Treasury Secretary Steven Mnuchin & Senate Republicans say $2.2 trillion is too much to spend Pennsylvania Republicans ask Supreme Court to block voting accommodations including allowing ballots to arrive three days after Election Day, according to the Washington Post 29% of voters say the presidential debates will be important for helping them decide who to vote for in November, according to the Wall Street Journal EPA chief questions California plan to require all new passenger vehicle sales in 2035 be zero-emission models, according to Reuters Chicago eases some COVID-19 restrictions on indoor bars, restaurants, fitness class sizes, according to Chicago Tribune Acceleron Pharma (XLRN) and Bristol Myers Squibb Canada (BMY) announced that Health Canada has approved REBLOZYL (luspatercept) Aerie Pharma (AERI) announces acceptance of its investigational new drug application for AR-15512 (TRPM8 Agonist) eye drop for dry eye disease Allianz SE (AZSEY): Pension funds sue asset manager for failing to safeguard investments during coronavirus market meltdown, according to Reuters Altimmune (ALT) presents highlights of AdCOVID and T-COVID intranasal vaccine and therapeutic candidates Ascendis Pharma (ASND) reports six month data of Phase 2 PaTH Forward Trial; files IND amendment to initiate Phase 3 Axsome Therapeutics (AXSM) announces $225 million term loan facility with Hercules Capital (HTGC); Non-dilutive committed capital extends cash runway into at least 2024 Ballard Power (BLDP) expands manufacturing capacity for membrane electrode assemblies to meet anticipated growth in fuel cell electric vehicle demand Boise Cascade (BCC) declares supplemental dividend of $1.60/share BridgeBio Pharma (BBIO) and affiliate Origin Biosciences announce FDA acceptance of NDA for fosdenopterin Carnival (CCL) unit Cunard announces return to Mediterranean cruises and overnight European stays Fiat Chrysler (FCAU) agrees to settle charges that it made misleading disclosures about an internal audit of its emissions control systems, according to SEC website Fluor (FLR) receives notice from Wells Fargo for failure to file quarterly report; co expects to cure the Covenant Failure before the expiration of the Cure Period FuelCell Energy (FCEL) announces multiple project awards by the local Connecticut electric distribution companies, Eversource and United Illuminating, totaling 11.2 megawatts, as part of the state-sponsored Shared Clean Energy Facility program Hertz Global (HTZ) names Kenny Cheung as new CFO, effective September 24, 2020 ICF International (ICFI) wins NIH contract with $49 mln ceiling Ironwood Pharma (IRWD) announced that data from IW-3718-30 did not meet the pre-specified criteria associated with a planned early efficacy assessment JP Morgan (JPM) consumer workers will be allowed to work remotely until next year, according to Bloomberg MTS Systems (MTSC) announces global workforce reductions in its Test & Simulation segment Nexstar (NXST) appoints Thomas E. Carter as COO, in addition to his CFO role Nikola (NKLA) founder Trevor Milton was accused by two women of sexual abuse. Mr. Milton denies the allegations, according to CNBC Oracle (ORCL) announced new integrations between Oracle Fusion Cloud Customer Experience and Zoom (ZM) that will help sales, marketing, and customer service teams Pebblebrook Hotel Trust (PEB) provides update on Q3 operating trends Petrobras Brasileiro (PBR) to spend $6 bln to dismantle platforms, pipelines and wells, according to Reuters Pfizer (PFE) announces that the FDA approves XELJANZ for the treatment of active polyarticular course juvenile idiopathic arthritis Quidel (QDEL) says it welcomes Trump Administration directing millions of Abbott's (ABT) visually read antigen tests for use in safeguarding K-12 school children Sorrento Therapeutics (SRNE) reports preclinical data for STI-1499 and STI-2020; demonstrated potent neutralizing activity against SARS-CoV-2 virus isolates Tesla (TSLA) CEO Elon Musk tweets that co will probably IPO Starlink, but only several years in the future Tiffany & Co (TIF) responds to "baseless and misleading counterclaims" filed by LVMH (LVMUY); Reiterates contractual requirement to complete transaction on agreed terms TransMedics Group (TMDX) announces that the FDA has temporarily postponed the Advisory Committee meeting reviewing company's premarket approval application for OCS Heart TTEC Holdings (TTEC) raises semi-annual cash dividend by 17.6% to $0.40 per share United Natural Foods (UNFI) CEO to retire Universal Health (UHS) confirms it experienced an information technology security incident in the early morning hours of September 27, 2020 Walmart (WMT) Canada more than triples order of Tesla (TSLA) Semi Trucks Walmart (WMT) in discussions with Tata Group to invest $25 bln in its "Super App", according to Reuters Windtree Therapeutics (WINT): FDA has accepted its Investigational New Drug application for a Phase 2 clinical trial studying lyo lucinactant in COVID-19 associated lung injury and acute respiratory distress syndrome patients M&A: Bright Scholar Education (BEDU) announced that it entered into agreements to acquire 60% equity interests in Leti Camp Education j2 Global (JCOM) to acquire RetailMeNot for approximately $420 million from Vericast Molina Healthcare (MOH) to acquire Affinity Health Plan for approximately $380 mln Orgenesis (ORGS) announces agreement to acquire Koligo Therapeutics Providence Service Corp (PRSC) expands into Home Care Segment with accretive acquisition of Simplura Health Group for $575 mln Snap-On (SNA) acquired the assets of AutoCrib for approximately $36 million in cash Sohu.com (SOHU) subsidiary Sogou (SOGO) enter merger agreement with Tencent (TCEHY) Uber (UBER) evaluating potential purchase of Free Now, the ride-hailing JV of Daimler AG (DDAIF) and BMW (BMWYY), according to Bloomberg Syndicate: Beam Therapeutics (BEAM) files for 4.5 mln share common stock offering Hycroft Mining (HYMC) to offer 7,220,000 units, with each unit consisting of one share of its common stock and one warrant to purchase one share of common stock in an underwritten public offering Party City (PRTY) files for 13,211,509 share common stock offering by selling shareholders IPOs: Expected to Price: Academy Sports + Outdoors (Nasdaq: ASO): The leading full-line sporting goods and outdoor recreation retailer is expected to price its 15.6 M share IPO between $15-$17. Asana (NYSE: ASAN): The operator of a management platform that helps teams orchestrate work is launching a 30.0 M share direct listing offering. Boqii Holding (NYSE: BQ): The operater of the largest pet-focused online retail business in China's pet market is expected to price its 7.0 M ADS IPO between $10-$12. C4 Therapeutics (Nasdaq: CCCC): The biopharmaceutical company developing therapeutic candidates to target and destroy disease-causing proteins to treat cancer & neurodegenerative conditions is expected to price its 8.8 M share IPO between $16-$18. ChinData Group (Nasdaq: CD): The leading carrier-neutral hyperscale data center solution provider in Asia-Pacific emerging markets is expected to price its 40.0 M ADS IPO between $11.50-$13.50. Mission Produce (Nasdaq: AVO): The leader in sourcing, producing and distributing fresh avocados is expected to price its 9.4 M share IPO between $15-$17. Oncorus (Nasdaq: ONCR): The clinical-stage biopharmaceutical company developing viral immunotherapies to transform outcomes for cancer patients is expected to price its 5.8 M share IPO between $14-$16. Palantir Technologies (NYSE: PLTR): The software developer for defense, intelligence agencies, law enforcement, and commercial enterprises is expected to price its 257.1 M share IPO at $10. PULMONX (Nasdaq: LUNG): The commercial-stage medical technology company that provides a minimally invasive treatment for patients with severe emphysema is expected to price its 6.7 M share IPO between $14-$16. Yalla Group (NYSE: YALA): The voice-centric social networking and entertainment platform in MENA is expected to price its 18.6 M share IPO between $7-$9. Gapping Up/Down Gapping up: ORGS +16%, AERI +9.3%, GPMT +6.3%, SRNE +6.2%, BLDP +5.3%, BEDU +4.1%, DYN +3.9%, RLGT +3.6%, SALT +3.3%, VER +2.9%, PRSC +2.4%, SNOW +1.5%, INFO +1.2%, MAXN +0.8%, DNLI +0.7% Gapping down: BEAM -6.8%, PRTY -5.7%, UNFI -3.1%, ZTO -3%, TMDX -2.3%, HYMC -1.6%, TSLA -1.1%, ALT -0.8%, NBIX -0.7% Analyst Research (see Upgrades/Downgrades calendarfor full list): Upgrades: Core Labs (CLB) upgraded to Hold from Sell at ABN Amro Dominion Energy (D) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $84 Estee Lauder (EL) upgraded to Neutral from Sell at Goldman; tgt raised to $231 Extended Stay America (STAY) upgraded to Buy from Neutral at BofA Securities; tgt raised to $15 Forward Air (FWRD) upgraded to Outperform from Mkt Perform at Raymond James; tgt $65 Franklin Electric (FELE) upgraded to Outperform from Neutral at Robert W. Baird; tgt $72 Hershey Foods (HSY) upgraded to Outperform from Market Perform at BMO Capital Markets; tgt raised to $163 Park Hotels & Resorts (PK) upgraded to Buy from Underperform at BofA Securities; tgt raised to $13 Pebblebrook Hotel Trust (PEB) upgraded to Buy from Neutral at BofA Securities; tgt raised to $15 RH (RH) upgraded to Outperform from Market Perform at Cowen; tgt $435 Square (SQ) upgraded to Outperform from Peer Perform at Wolfe Research; tgt $195 Sunstone Hotel (SHO) upgraded to Buy from Neutral at BofA Securities; tgt $10 Downgrades: Azul S.A. (AZUL) downgraded to Neutral from Outperform at Bradesco BBI Choice Hotels (CHH) downgraded to Underperform from Neutral at BofA Securities; tgt $95 Host Hotels (HST) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $12 RLJ Lodging Trust (RLJ) downgraded to Underperform from Neutral at BofA Securities; tgt lowered to $9.50 Others: AbbVie (ABBV) initiated with a Hold at Berenberg; tgt $98 Aprea Therapeutics (APRE) resumed with a Neutral at JP Morgan; tgt $25 AstraZeneca (AZN) initiated with a Buy at Berenberg Axsome Therapeutics (AXSM) initiated with an Underperform at BofA Securities; tgt $66 BioCryst Pharma (BCRX) resumed with an Overweight at JP Morgan; tgt $7 Black Knight (BKI) initiated with a Buy at BofA Securities; tgt $97 Bristol-Myers (BMY) initiated with a Buy at Berenberg; tgt $73 Cormedix (CRMD) initiated with a Mkt Outperform at JMP Securities; tgt $22 Darling Ingredients (DAR) initiated with an Overweight at Stephens; tgt $54 Duke Realty (DRE) resumed with a Neutral at Goldman; tgt $40 Eli Lilly (LLY) initiated with a Hold at Berenberg; tgt $144 Esperion Therapeutics (ESPR) resumed with an Underweight at JP Morgan; tgt $35 First Industrial Realty (FR) resumed with a Sell at Goldman; tgt $39 GlaxoSmithKline (GSK) initiated with a Buy at Berenberg GreenPower Motor (GP) initiated with a Buy at BTIG Research; tgt $25 iClick Interactive Asia Group (ICLK) initiated with a Buy at China Renaissance Immunogen (IMGN) resumed with a Neutral at JP Morgan Magnite (MGNI) initiated with an Outperform at RBC Capital Mkts; tgt $9 Merck (MRK) initiated with a Hold at Berenberg; tgt $88 Mersana Therapeutics (MRSN) resumed with a Neutral at JP Morgan; tgt $20 Novartis AG (NVS) initiated with a Buy at Berenberg Novo Nordisk A/S (NVO) initiated with a Hold at Berenberg Penumbra (PEN) initiated with a Buy at BTIG Research; tgt $233 Performance Food Group (PFGC) initiated with an Overweight at Morgan Stanley; tgt $45 Pfizer (PFE) initiated with a Hold at Berenberg; tgt $38 Prologis (PLD) resumed with a Buy at Goldman; tgt $126 Radius Health (RDUS) resumed with a Neutral at JP Morgan; tgt $23 Sanofi (SNY) initiated with a Hold at Berenberg Shutterstock (SSTK) initiated with a Buy at BofA Securities; tgt $63 Stoke Therapeutics (STOK) resumed with a Neutral at JP Morgan; tgt $34 Sysco (SYY) initiated with an Equal-Weight at Morgan Stanley; tgt $66 Terreno Realty (TRNO) resumed with a Neutral at Goldman; tgt $60 Tricida (TCDA) resumed with an Underweight at JP Morgan; tgt $8 US Foods (USFD) initiated with an Equal-Weight at Morgan Stanley; tgt $26 Zentalis Pharma (ZNTL) initiated with an Overweight at Cantor Fitzgerald; tgt $44 Zymeworks (ZYME) resumed with a Neutral at JP Morgan; tgt $48 Upcoming Events: Econ Data: 08:30 ET: Adv. Intl. Trade in Goods for August (Briefing.com Consensus NA; Prior -$80.1 B) 08:30 ET: Adv. Retail Inventories for August (Briefing.com Consensus NA; Prior 0.6%) 08:30 ET: Adv. Wholesale Inventories for August (Briefing.com Consensus NA; Prior -0.1%) 09:00 ET: S&P Case-Shiller Home Price Index for July (Briefing.com Consensus 3.9%; Prior 3.5%) 10:00 ET: Consumer Confidence for September (Briefing.com Consensus 88.5; Prior 84.8) Asia & Europe detail: Asia: Nikkei +0.1%, Hang Seng -0.9%, Shanghai +0.2% Equity indices in the Asia-Pacific region ended Tuesday on a mixed note. Nikkei reported that Japan will begin removing its coronavirus-related travel warnings in October. Some banks in China are reportedly limiting mortgage issuance. Australia's Prime Minister, Scott Morrison, said that Australia's next budget, which will be presented next Tuesday, is one of the most important since World War II. In economic data: Japan's September Tokyo CPI 0.2% yr/yr (last 0.3%) and Tokyo Core CPI -0.2% yr/yr (expected -0.3%; last -0.3%) South Korea's August Industrial Production -0.7% m/m (expected 1.9%; last 1.9%); -3.0% yr/yr (expected -1.2%; last -2.4%). August Retail Sales 3.0% m/m (last -6.0%) and October Manufacturing BSI Index 70 (last 68) ---Equity Markets--- Japan's Nikkei: +0.1% Hong Kong's Hang Seng: -0.9% China's Shanghai Composite: +0.2% India's Sensex: UNCH South Korea's Kospi: +0.9% Australia's ASX All Ordinaries: +0.1% ---FX--- USD/JPY: +0.1% to 105.64 USD/CNH: +0.1% to 6.8224 USD/INR: UNCH at 73.78 Europe: DAX -0.4%, FTSE -0.3%, CAC UNCH Major European indices trade on a mostly lower note. EU officials are reportedly preparing the text of a trade agreement with the U.K., suggesting that the two sides are getting closer to a deal. European Central Bank President, Christine Lagarde, said that deflation in the eurozone is expected to continue for a few more months. Germany's Finance Minister, Olaf Scholz, said that Germany's debt-to-GDP ratio will increase to about 75%. In economic data: Eurozone's September Business and Consumer Survey 91.1 (expected 89.5; last 87.7) U.K.'s August BoE Consumer Credit GBP300 mln (expected GBP1.50 bln; last GBP1.10 bln). August Mortgage Approvals 84,700 (expected 73,000; last 66,300) and August Mortgage Lending GBP3.10 bln (expected GBP3.80 bln; last GBP2.90 bln) France's September Consumer Confidence 95 (expected 93; last 95) Italy's August PPI 0.1% m/m (last 0.2%); -3.0% yr/yr (last -4.2%) Spain's August Retail Sales -2.4% yr/yr (last -3.9%). September CPI 0.2% m/m (last 0.0%); -0.4% yr/yr (expected -0.5%; last -0.5%) ---Equity Markets--- STOXX Europe 600: -0.4% Germany's DAX: -0.4% U.K.'s FTSE 100: -0.3% France's CAC 40: UNCH Italy's FTSE MIB: +0.2% Spain's IBEX 35: -0.1% ---FX--- EUR/USD: +0.2% to 1.1687 GBP/USD: +0.2% to 1.2855 USD/CHF: -0.2% to 0.9228