DAILY MORNING BRIEFING

The S&P 500 futures trade 38 points, or 1.1%, below fair value to extend yesterday's post-FOMC selling. Losses are broad in pre-market action and overseas, threatening to erase this week's early rebound attempt. There is no discernible headline causing losses to carry over to today's session, suggesting the decline is technically-oriented and there are simply more sellers than buyers right now. The Fed, after all, caused no surprises with its policy decision and President Trump even said that he liked a $1.5 trillion relief bill proposed by centrist lawmakers. Coming up at 8:30 a.m. ET will be some key economic data. Investors will receive weekly Initial Claims (Briefing consensus 830,000) and Continuing Claims data, Housing Starts (Briefing.com consensus 1.489 mln) and Building Permits (Briefing consensus 1.520 mln) for August, and the Philadelphia Fed Index for September (Briefingconsensus 13.0). In other central bank news, the Bank of England maintained its bank rate at 0.1%, and the Bank of Japan made no changes to its policy stance. U.S. Treasuries have ticked higher, pushing yields slightly lower. The 2-yr yield is down one basis point to 0.13%, and the 10-yr yield is down two basis points to 0.67%. The U.S. Dollar Index is little changed at 93.19. WTI crude futures are up 0.2% ahead of an OPEC+ meeting today. In U.S. Corporate news: Moderna (MRNA 70.72, +1.88): +2.7% after announcing progress across its broad portfolio and all three clinical stage therapeutic areas for COVID-19. MetLife (MET 38.00, +0.37): +1.0% after agreeing to acquire Versant Health for approximately $1.675 billion in cash. Herman Miller (MLHR 29.65, +3.76): +14.6% after beating top and bottom-line estimates and re-establishing its dividend program. Reviewing overnight developments: Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's Nikkei: -0.7%, Hong Kong's Hang Seng: -1.6%, China's Shanghai Composite: -0.4%, India's Sensex: -0.8%, South Korea's Kospi: -1.2%, Australia's ASX All Ordinaries: -1.3%. In economic data: Singapore's August trade surplus SGD5.80 bln. August non-oil exports 7.7% yr/yr (expected 3.7%; last 5.9%) Australia's August Employment Change 111,000 (expected -50,000; prior 114,700) and Full Employment Change 36,200 (last 43,500). August Unemployment Rate 6.8% (expected 7.7%; last 7.5%) and Participation Rate 64.8% (expected 64.7%; last 64.7%) New Zealand's Q2 GDP -12.2% qtr/qtr (expected -12.8%; last -1.4%); -12.4% yr/yr (expected -13.3%; last -0.1%) Hong Kong's August Unemployment Rate 6.1% (last 6.1%) In news: Japan's new Prime Minister, Yoshihide Suga, said during his inaugural press conference that he intends to continue the Abenomics program. The Bank of Japan made no changes to its policy stance but raised its assessment of industrial production and exports. The U.S. government has reportedly offered to hold humanitarian aid talks with North Korea. Major European indices trade on a lower note. STOXX Europe 600: -0.8%, Germany's DAX: -0.7%, U.K.'s FTSE 100: -0.5%, France's CAC 40: -0.8%, Italy's FTSE MIB: -1.2%, Spain's IBEX 35: -0.7%. In economic data: Eurozone's August CPI -0.4% m/m, as expected (last -0.4%); -0.2% yr/yr, as expected (last 0.4%). August Core CPI -0.6% m/m (expected -0.5%; last -0.3%); 0.4% yr/yr, as expected (last 1.2%). June Construction Output 0.19% m/m (last 5.14%) Italy's July trade surplus EUR9.69 bln (last surplus of EUR6.23 bln) Swiss August trade surplus CHF3.58 bln (last surplus of CHF3.34 bln) In news: Passenger vehicle registrations in the EU decreased for the seventh consecutive month, reflecting weak demand. European Central Bank policymaker Luis de Guindos said that the ECB's asset purchases could be adjusted if necessary, after CPI contracted in August. German Finance Minister, Olaf Scholz, said that Germany's 2021 budget will include EUR100 bln of new debt. The Bank of England voted 9-0 to keep its bank rate and asset purchases at their respective 0.10% and GBP725 bln. U.S equity futures: S&P 500 Futures -45 @ 3334 DJIA Futures -260 @ 27677 Nasdaq Futures -223 @ 11032 Overseas: Europe: DAX -0.7%, FTSE -0.5%, CAC -0.8% Asia: Nikkei -0.7%, Hang Seng -1.6%, Shanghai -0.4% Commodities: Crude Oil +0.09 @ 40.25 Nat Gas -0.022 @ 2.245 Gold -16.00 @ 1954.50 Silver -0.391 @ 27.085 Copper -0.017 @ 3.0435 U.S. Summary: Earnings/Guidance (Full Earnings Calendar): Apogee Enterprises (APOG) beats by $0.44, beats on revs; not providing guidance right now Herman Miller (MLHR) beats dual estimate by $0.94, beats on revs; re-establishes dividend program Perrigo (PRGO) reaffirms FY20 EPS guidance of $3.95-4.15 W.R. Grace (GRA) reaffirms Q3 planning assumptions in presentation - expects sales to be down 10-13% yr/yr and gross margin of 37-38% (300-400 bps sequential increase) General News: President Trump is moving closer to $1.5 trillion stimulus plan introduced by centrist lawmakers. House Speaker Nancy Pelosi (D-CA) has called the plan "insufficient" and Senator John Thune (R-SD) said that bill will cause "a lot of heartburn" among GOP lawmakers, according to Bloomberg CDC director Robert Redfield says coronavirus vaccine will not be widely available until middle of 2021, but President Trump said he was wrong. Mr. Redfield also said masks will protect person wearing it more than a vaccine, according to Washington Post WeChat users will not be targeted by White House executive order, according to Bloomberg White House wants to give American investors majority share of company that will takeover TikTok, according to The Wall Street Journal President Trump mulling $300 mln in support to oil refiners, according to Reuters Bank of England rate maintained at 0.1% Accenture (ACN) announced the formation of Accenture Cloud First with a $3 billion investment Bristol-Myers (BMY) announces settlement of U.S. patent litigation for REVLIMID (lenalidomide) with Dr. Reddy's (RDY) Carnival (CCL) unit P&O Cruises confirmed an extension to its pause in operations, with all sailings cancelled until early 2021 Eli Lilly (LLY) announce manufacturing collaboration with Amgen (AMGN) for COVID-19 antibody therapies General Motors (GM) faces unexpected costs due to delay of India plant, according to Reuters Moderna (MRNA) CEO Stphane Bancel says in CNBC interview that base plan is for November to know if vaccine works (It could happen in October or December as well) Moderna (MRNA) and Vertex Pharma (VRTX) announce new research collaboration and licensing agreement for cystic fibrosis ValueAct's Jeff Ubben defended Nikola (NKLA) against claims of fraud, according to FT Royal Caribbean International (RCL) and Celebrity Cruises will be suspending all sailings departing from Australia and New Zealand on or before December 31, 2020 in alignment with the Australian Government's recent decision to extend the suspension of cruise tourism Sony (SNE) tweets that PlayStation 5 will launch Nov 12 in US, Japan, Canada, Mexico, Australia, New Zealand, S. Korea and Nov 19 for rest of world; price will be $399.99 and $499.99 Sorrento Therapeutics (SRNE) receives FDA clearance to proceed with Phase 1 clinical trial of STI-1499 (COVI-GUARD) neutralizing antibody in COVID-19 positive patients Southwest Airlines (LUV) grounds 130 Boeing (BA) 737-800 airplanes over concerns about weight data, according to Reuters Twitter (TWTR) and WebMD announces partnership that marks the first content collaboration between Twitter and a health care platform M&A: 51job (JOBS) announces receipt of a preliminary non-binding proposal to acquire the company for US$79.50 in cash per common share MetLife (MET) to acquire Versant Health from an investor group led by Centerbridge Partners and including FFL Partners for approximately $1.675 billion in an all-cash transaction Syndicate: 89bio (ETNB) prices offering of 3,300,000 shares of its common stock at $28.00 per share Alerus Financial (ALRS) files for $125 mln mixed securities shelf offering Cardlytics (CDLX) files for $200 mln convertible notes offering Chewy (CHWY) commences public offering of approx. $275 mln of shares of its Class A common stock Fiesta Restaurant (FRGI) files for $100 mln mixed securities shelf offering First Solar (FSLR) announces secondary offering of 8,649,074 shares of common stock; all shares being sold by Lukas Walton Forterra (FRTA) prices secondary offering by co's largest stockholder of 10 mln shares of common stock at $13.50 per share Kornit Digital (KRNT) prices offering by co and selling shareholders of 4,078,210 ordinary shares at $56.50 per share NuCana (NCNA) prices 15,555,556 ADS at $4.50/ADS Trillium Therapeutics (TRIL) prices 11.5 mln share offering at $13 per share IPOs: Expected to Price: Broadstone Net Lease (NYSE: BNL): The REIT that acquires, owns, and manages primarily single-tenant commercial real estate properties is expected to price its 33.5 M share IPO between $17-$19. Dyne Therapeutics (Nasdaq: DYN): The muscle disease company focused on advancing therapeutics for patients with genetically driven disease is expected to price its 10.3 M share IPO between $16-$18. Pactiv Evergreen (Nasdaq: PTVE): The largest manufacturer and distributor of foodservice and food merchandising products and beverage cartons in North America is expected to price its 41.0 M share IPO between $18-$21. Unity Software (NYSE: U): The leading platform for creating and operating interactive, real-time 3D content is expected to price its 25.0 M share IPO between $34-$42. Vitru (Nasdaq: VTRU): The leading distance learning education group in postsecondary digital education market in Brazil is expected to price its 11.0 M share IPO between $22-$24. Priced to Trade: Amwell (NYSE: AMWL): The leading telehealth company enabling digital delivery of care for healthcare's key stakeholders upsizes offering by 6 mln shares and prices 41.22 mln share IPO at 18.00 per share, above the expected range of $14-16. Sumo Logic (Nasdaq: SUMO): The pioneer of Continuous Intelligence, a new category of software which enables organizations to address opportunities presented by digital transformation and cloud computing prices 14.8 mln share IPO at $22.00 per share, above expected range of $17-21. Gapping Up/Down Gapping up: SRNE +24%, MLHR +15.8%, JOBS +14.8%, GNCA +10.2%, KNL +9.5%, APOG +8.2%, SCS +6.5%, CKPT +5.9%, GTH +4.2%, HNI +3.4%, TLSA +3%, BNTX +2.7%, MRNA +1.7%, IMGN +1.7%, EQC +1.4%, IRBT +0.8% Gapping down: SBBP -17.9%, NCNA -12.1%, FSLR -6.8%, CLVS -6.1%, CHWY -4.4%, ETNB -4.1%, CCL -3.7%, OSW -3.3%, FRTA -3.1%, CDLX -2.5%, FRGI -2.5%, RCL -2.5%, CRVS -1.4%, GOOG -1.3%, AUY -1.3%, VEEV -1.3%, GRA -1.3%, PPD -1.2% Analyst Research (see Upgrades/Downgrades calendarfor full list): Upgrades: Adobe (ADBE) upgraded to Buy from Hold at DZ Bank; tgt $570 A.O. Smith (AOS) upgraded to Buy from Neutral at Rosenblatt; tgt raised to $62 ArcelorMittal (MT) upgraded to Buy from Neutral at BofA Securities Lennar (LEN) upgraded to Positive from Neutral at Susquehanna; tgt raised to $94 Mercury (MRCY) upgraded to Buy from Neutral at Goldman; tgt raised to $81 Whiting Petroleum (WLL) upgraded to Buy from Hold at Truist; tgt $32 ZoomInfo (ZI) upgraded to Overweight from Neutral at JP Morgan; tgt $50 Downgrades: CF Industries (CF) downgraded to Hold from Buy at HSBC Securities; tgt $36 General Dynamics (GD) downgraded to Sell from Buy at Goldman; tgt lowered to $138 KKR Real Estate Finance Trust (KREF) downgraded to Neutral from Buy at Citigroup; tgt raised to $18 Others: ACI Worldwide (ACIW) initiated with a Buy at Compass Point; tgt $40 Boston Scientific (BSX) initiated with a Buy at Truist; tgt $47 Cushman & Wakefield (CWK) initiated with an Outperform at Raymond James; tgt $18 CVS Health (CVS) initiated with an Overweight at Piper Sandler; tgt $72 Fidelity Nat'l Info (FIS) initiated with a Neutral at Compass Point; tgt $155 First Republic Bank (FRC) resumed with a Neutral at Piper Sandler; tgt $115 Fiserv (FISV) initiated with a Buy at Compass Point; tgt $130 Global Payments (GPN) resumed with a Buy at Compass Point; tgt $220 Huntsman (HUN) initiated with a Buy at Stifel; tgt $29 Jack Henry (JKHY) initiated with a Neutral at Compass Point; tgt $175 Maverix Metals (MMX) initiated with an Outperform at BMO Capital Markets; tgt $6.50 Q2 Holdings (QTWO) resumed with a Buy at Compass Point; tgt $120 Repay Holdings (RPAY) initiated with an Overweight at Barclays; tgt $28 Revolve Group (RVLV) initiated with a Buy at MKM Partners; tgt $24 Spectrum Pharma (SPPI) initiated with a Mkt Outperform at JMP Securities; tgt $12 Stitch Fix (SFIX) initiated with a Neutral at MKM Partners; tgt $25 Veeco Instruments (VECO) initiated with an Overweight at Barclays; tgt $15 Vericel (VCEL) initiated with a Buy at Truist; tgt $24 Upcoming Events: Econ Data: 08:30 ET: Weekly Initial Claims (Briefing.com consensus 830,000; prior 884,000) and Continuing Claims (prior 13.385 mln) 08:30 ET: August Housing Starts (Briefing.com consensus 1.489 mln; prior 1.496 mln) and Building Permits (Briefing.com consensus 1.520 mln; prior 1.495 mln) 08:30 ET: September Philadelphia Fed Survey (Briefing.com consensus 13.0; prior 17.2) 10:30 ET: Weekly natural gas inventories (prior +70 bcf) Earnings: Monday (Sept 14) Afternoon: LEN Tuesday (Sept 15) Morning: CBRL DAVA Afternoon: ADBE FDX Wednesday (Sept 16) Morning: BRC Afternoon: MLHR Thursday (Sept 17) Morning: APOG CMD Friday (Sept 11) None Confirmed Full Earnings Calendar Asia & Europe detail: Asia: Nikkei -0.7%, Hang Seng -1.6%, Shanghai -0.4% Equity indices in the Asia-Pacific region ended Thursday on a mostly lower note. Japan's new Prime Minister, Yoshihide Suga, said during his inaugural press conference that he intends to continue the Abenomics program. The Bank of Japan made no changes to its policy stance but raised its assessment of industrial production and exports. The U.S. government has reportedly offered to hold humanitarian aid talks with North Korea. In economic data: Singapore's August trade surplus SGD5.80 bln. August non-oil exports 7.7% yr/yr (expected 3.7%; last 5.9%) Australia's August Employment Change 111,000 (expected -50,000; prior 114,700) and Full Employment Change 36,200 (last 43,500). August Unemployment Rate 6.8% (expected 7.7%; last 7.5%) and Participation Rate 64.8% (expected 64.7%; last 64.7%) New Zealand's Q2 GDP -12.2% qtr/qtr (expected -12.8%; last -1.4%); -12.4% yr/yr (expected -13.3%; last -0.1%) Hong Kong's August Unemployment Rate 6.1% (last 6.1%) ---Equity Markets--- Japan's Nikkei: -0.7% Hong Kong's Hang Seng: -1.6% China's Shanghai Composite: -0.4% India's Sensex: -0.8% South Korea's Kospi: -1.2% Australia's ASX All Ordinaries: -1.3% ---FX--- USD/JPY: -0.2% to 104.72 USD/CNH: +0.4% to 6.7727 USD/INR: +0.2% to 73.62 Europe: DAX -0.7%, FTSE -0.5%, CAC -0.8% Major European indices trade on a lower note. Passenger vehicle registrations in the EU decreased for the seventh consecutive month, reflecting weak demand. European Central Bank policymaker Luis de Guindos said that the ECB's asset purchases could be adjusted if necessary, after CPI contracted in August. German Finance Minister, Olaf Scholz, said that Germany's 2021 budget will include EUR100 bln of new debt. The Bank of England voted 9-0 to keep its bank rate and asset purchases at their respective 0.10% and GBP725 bln. In economic data: Eurozone's August CPI -0.4% m/m, as expected (last -0.4%); -0.2% yr/yr, as expected (last 0.4%). August Core CPI -0.6% m/m (expected -0.5%; last -0.3%); 0.4% yr/yr, as expected (last 1.2%). June Construction Output 0.19% m/m (last 5.14%) Italy's July trade surplus EUR9.69 bln (last surplus of EUR6.23 bln) Swiss August trade surplus CHF3.58 bln (last surplus of CHF3.34 bln) ---Equity Markets--- STOXX Europe 600: -0.8% Germany's DAX: -0.7% U.K.'s FTSE 100: -0.5% France's CAC 40: -0.8% Italy's FTSE MIB: -1.2% Spain's IBEX 35: -0.7% ---FX--- EUR/USD: -0.1% to 1.1803 GBP/USD: -0.5% to 1.2905 USD/CHF: +0.1% to 0.910