DAILY MORNING BRIEFING

Morning Briefing - Looking to close out volatile week on a strong notehe S&P 500 futures trade 38 points, or 1.1%, above fair value to recover some of yesterday's sharp decline. The benchmark index enters the session down 2.6% for the week. The S&P 500 futures trade 38 points, or 1.1%, above fair value to recover some of yesterday's sharp decline. Mega-cap and growth stocks have been at the forefront of this week's volatile action: either leading the retreat one day or leading the rebound the next. This morning, they are taking the latter route with Peloton (PTON 99.85, +12.10, +13.8%), for example, up 14% following its positive earnings report and upbeat guidance. Older tech company Oracle (ORCL 9.51, +2.18, +3.8%) is up 4% after reporting better-than-expected earnings results. The broader market, though, has traded more on a technical basis than on any fundamental news this week. Economic data hasn't generated much attention, but to close out the week, investors will receive the Consumer Price Index for August (Briefing.com consensus 0.3%) at 8:30 a.m. ET and the Treasury Budget for August at 2:00 p.m. ET. U.S. Treasuries trade near their flat lines and continue to trade at relatively low levels that are generally supportive for growth stocks. The 2-yr yield is flat at 0.14%, and the 10-yr yield is flat at 0.69%. The U.S. Dollar Index is down 0.2% to 93.17. WTI crude futures are flat at $37.29/bbl. ___________________________________________ In U.S. Corporate news: Oracle (ORCL 59.51, +2.18): +3.8% after beating top and bottom-line estimates. Peloton (PTON 99.85, +12.10): +13.8% after beating top and bottom-line estimates and issuing upside revenue guidance for Q1 and FY21. Adobe (ADBE 488.68, +12.42): +2.6% after the stock was upgraded to Outperform from Market Perform at Cowen. ___________________________________________ WORLD. Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Japan's Nikkei: +0.7%, Hong Kong's Hang Seng: +0.8%, China's Shanghai Composite: +0.8%, India's Sensex: UNCH, South Korea's Kospi: UNCH, Australia's ASX All Ordinaries: -0.8%. In economic data: China's August New Loans CNY1.28 trln (expected CNY1.22 trln; last CNY992.70 bln). August outstanding loan growth 13.0% yr/yr, as expected (last 13.0%). August M2 Money Stock 10.4% yr/yr (expected 10.7%; last 10.7%) Japan's August PPI 0.2% m/m, as expected (last 0.6%); -0.5% yr/yr, as expected (last -0.9%). Q3 BSI Large Manufacturing Conditions 0.1 (last -52.3) New Zealand's August FPI 0.7% m/m (last 1.2%) and August Business NZ PMI 50.7 (last 58.8) In news: China and India agreed to disengage in an attempt to deescalate the ongoing border conflict. Japan's Chief Cabinet Secretary, Yoshihide Suga, said that Japan's sales tax will have to be increased again, but not for a decade. Japan's Foreign Minister is expected to continue trade talks with the U.K.'s trade minister today. South Korea's exports through the first ten days of September were down 0.2% yr/yr but chip exports surged 43.2% yr/yr. Major European indices trade in mixed fashion. STOXX Europe 600: +0.1%, Germany's DAX: UNCH, U.K.'s FTSE 100: +0.2%, France's CAC 40: UNCH, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: -0.7%. In economic data: Germany's August CPI -0.1% m/m, as expected (last -0.5%); 0.0% yr/yr, as expected (last -0.1%) U.K.'s July trade deficit GBP8.64 bln (expected deficit of GBP6.90 bln; last deficit of GBP5.12 bln). July Construction Output 17.6% m/m (expected 10.5%; last 23.5%); -12.7% yr/yr (expected -16.4%; last -24.8%). July Industrial Production 5.2% m/m (expected 4.0%; last 9.3%); -7.8% yr/yr (expected -8.9%; last -12.5%). July Manufacturing Production 6.3% m/m (expected 5.0%; last 11.0%); -9.4% yr/yr (expected -10.5%; last -14.6%). July GDP 6.6% m/m (expected 6.7%; last 8.7%) Spain's July Industrial Production -6.4% yr/yr (expected -9.9%; last -14.3%). August CPI 0.0% m/m, as expected (last -0.9%); -0.5% yr/yr, as expected (last -0.6%) In news: The EU has given the U.K. 20 days to retract the planned changes to the Brexit agreement or face legal action. European Central Bank policymaker Philip Lane said that he expects a strong rebound in Q3, but inflation will remain negative for the rest of the year. Hotelier Accor will be dropped from France's CAC 40 in favor of Alstom. _________________________________________ Boeing faces another blow. The company is working with regulators to address yet another production flaw in its 787 Dreamliner, the fourth to come to light in recent weeks involving the jet's carbon-composite airframe. Things aren't going well for the Pentagon, either. Its five-year budget plan for the F-35 falls short by as much as $10 billion, a sign its complex fighter jet may be too costly to operate and maintain. Cost analysis unit estimates $88 billion will be needed. Tech No extension of TikTok deadline "It'll either be closed up or they'll sell it," President Trump told reporters. "There will be no extension of the TikTok deadline." There isn't much time before the September 15 cutoff date, meaning a deal would have to be announced in the next few days to prevent a shutdown. Suitors including Oracle (NYSE:ORCL), and a team of Microsoft (NASDAQ:MSFT) and Walmart (NYSE:WMT), have reportedly been discussing four ways to structure an acquisition from parent ByteDance (BDNCE), which includes buying the app's U.S. operations without key software (avoiding potential backdoors and other security issues). This vaccine is not to be sniffed at. China is testing a nasal spray to fend against Covid-19 in what would be a world first. The device contains weakened flu that carries the genetic parts of the coronavirus and mimics natural infections to stimulate an immune response. It may come as a relief to people who hate needles and nations facing a looming challenge in volatile support for vaccines. Find out about Israel's second lockdown and India's spike in the Virus Update. The path to the White House runs through Pennsylvania and President Trump and Joe Biden will visit the state today to commemorate the anniversary of the 9/11 attacks. They'll appear at different times at a site close to Shanksville, where one of the hijacked planes crashed in 2001. The Flight 93 remembrance ceremony, which typically lasts 90 minutes, will be shortened to approximately half an hour. Gapping up In reaction to earnings/guidance: PTON +14%, ZUMZ +8.6%, CNDT +5.5% (guidance), ORCL +3.5%, CX +2% (guidance), MSM +0.9% Other news: KODK +12.3% (Southeastern Asset Management discloses stake) DQ +10.8% (announced that the application documents regarding a potential IPO of Xinjiang Daqo New Energy had been submitted to and received by the Shanghai Stock Exchange) GLPG +8.8% (Phase 2a clinical trial with investigational ziritaxestat achieves primary endpoint) RM +7% (reports 30+ day delinquencies remain stable at 4.6% in August, compared to 4.8% in June) IMUX +6.7% (publishes full unblinded clinical data from Phase 2 emphasis trial of IMU-838 in patients with relapsing-remitting multiple sclerosis) MNOV +5.8% (SARS-CoV-2 vaccine co-developer BioComo announced that its Respiratory Syncytial (RS) virus vaccine using BC-PIV technology induced high neutralizing antibodies in mice) DKNG +3.7% (extends +5% gain from Thursday's regular session) LYRA +3.2% (reports clinical data demonstrating LYR-210's local anti inflammatory effects for the treatment of chronic rhinosinusitis) RIO +2.6% (CEO to step down; process to identify his successor is underway) SLGL +1.3% (FDA accepts Epsolay NDA for filing) GOGO +1.2% (comments on investment by GTCR) Analyst comments: PLAB +8.7% (upgraded to Buy from Hold at Stifel) VSTO +4.6% (upgraded to Buy from Neutral at B. Riley FBR) SPWR +3.8% (upgraded to Outperform from Neutral at Robert Baird) LYB +3.7% (upgraded to Overweight from Neutral at JP Morgan) ACMR +3.5% (upgraded to Buy from Hold at Stifel) ADBE +3% (upgraded to Outperform from Market Perform at Cowen) VIR +2.9% (upgraded to Neutral from Underweight at JP Morgan) CTSH +1.8% (upgraded to Buy from Neutral at BofA Securities) EQNR +1.7% (upgraded to Outperform from Sector Perform at RBC Capital Mkts) DPZ +1.3% (upgraded to Outperform from Market Perform at Cowen) TRV +1.1% (upgraded to Equal Weight from Underweight at Wells Fargo) SWKS +1.1% (initiated with a Buy at Rosenblatt) ____________________________________________ Gapping down In reaction to earnings/guidance: CHWY -0.8%, PLAY -0.6% Other news: AMRS -18.5% (after LAVVAN filed $881 mln lawsuit against co for patent infringement and trade secret misappropriation) SPRO -8.1% (prices offering of 4,785,000 shares of its common stock and 3,215,000 shares of its non-voting Series D Convertible Preferred Stock at $10.00) MNRL -7.7% (prices secondary offering of 4,366,209 shares of its Class A common stock by certain of its stockholders at a price to the public of $8.20 per share) QTNT -4.6% (prices offering of 17,647,059 ordinary shares at $4.25 per share) FOUR -2% (prices offering of 2,000,000 shares of its Class A common stock by co and 8,000,000 shares by certain selling stockholders at $48.50 per share) NTRA -1.6% (prices offering of 4,166,666 shares of its common stock at $60.00 per share) EDIT -1.3% (announces U.S. Patent and Trademark Office grants the Broad Institute priority benefit in CRISPR Interference) VRM -0.7% (prices offering of 10,800,000 shares of its common stock at $54.50 per share) Analyst comments: STSA -10.3% (downgraded to Neutral from Outperform at Credit Suisse; downgraded to Neutral from Buy at Mizuho) BCC -1% (downgraded to Neutral from Buy at BofA Securities) ______________________ Today's Economic Calendar 8:30 Consumer Price Index 10:00 Quarterly Services Report 1:00 PM Baker-Hughes Rig Count 2:00 PM Treasury Budget