DAILY MORNING BRIEFING

The S&P 500 futures trade eight points, or 0.2%, above fair value as the market takes a breather at the end of a volatile trading week. Despite the losses over the past two sessions, the benchmark index is still up 0.5% for the week. The positive bias in the futures trade could be linked to the modest gains in the mega-caps stocks this morning, which have been under selling pressure recently. Cyclical sectors, ex financials, have picked up the slack, so it'll be interesting to see if they can build on their recent gains. One topic that will be of interest today and over the weekend is the TikTok ordeal. The U.S. Commerce Department said it will prohibit users from downloading TikTok and WeChat, starting Sunday. Shares of Oracle (ORCL 59.25, -0.93, -1.6%), which formed a technology partnership with TikTok, are down 1.6% in pre-market action. On the data front, investors will receive the Q2 Current Account Balance (Briefing consensus -$146.3 bln) at 8:30 a.m. ET, followed by the preliminary University of Michigan Index of Consumer Sentiment for September (Briefing.com consensus 77.0) and the Conference Board's Leading Economic Index for August (Briefing consensus 1.4%) at 10:00 a.m. ET. U.S. Treasuries continue to trade near their flat lines, as they have all week. The 2-yr yield is flat at 0.13%, and the 10-yr yield is down one basis point to 0.67%. The U.S. Dollar Index is down 0.1% to 92.92. WTI crude futures are down 0.8% to $40.64/bbl. In U.S. Corporate news: Oracle (ORCL 59.25, -0.93): -1.6% on news the U.S. will prohibit users from downloading TikTok and WeChat, starting Sunday. Tesla (TSLA 445.11, +21.68): +5.1% after Wedbush raised its price target on the stock to $475 from $380 ahead of its Battery Day event next week. Beyond Meat (BYND 150.75, -6.47): -4.1% after the stock was downgraded to Underweight from Neutral at JP Morgan. Reviewing overnight developments: Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Japan's Nikkei: +0.2%, Hong Kong's Hang Seng: +0.5%, China's Shanghai Composite: +2.1%, India's Sensex: -0.3%, South Korea's Kospi: +0.3%, Australia's ASX All Ordinaries: -0.2%. In economic data: Japan's August CPI 0.2% m/m (last 0.1%). August National CPI 0.2% yr/yr (last 0.3%) and August National Core CPI -0.4% yr/yr (expected -0.4%; last 0.0%) In news: Japan's Prime Minister, Yoshihide Suga, has reportedly asked his communication minister to pursue lower cell phone service fees. China's PLA will hold exercises in the Taiwan Strait at an unspecified time. Japan's Nikkei will be closed for holidays on Monday and Tuesday. Major European indices trade near their flat lines. STOXX Europe 600: +0.1%, Germany's DAX: +0.4%, U.K.'s FTSE 100: -0.1%, France's CAC 40: -0.1%, Italy's FTSE MIB: -0.1%, Spain's IBEX 35: -1.3%. In economic data: Eurozone's July Current Account surplus EUR16.60 bln (last surplus of EUR20.70 bln) Germany's August PPI 0.0% m/m (expected -0.1%; last 0.2%); -1.2% yr/yr (expected -1.4%; last -1.7%) U.K.'s August Retail Sales 0.8% m/m (expected 0.7%; last 3.7%); 2.8% yr/yr (expected 3.0%; last 1.4%). August Core Retail Sales 0.6% m/m (expected 0.4%; last 2.1%); 4.3% yr/yr (expected 4.2%; last 3.1%) Italy's July Industrial New Orders 3.7% m/m (last 23.7%); -7.2% yr/yr (last -11.6%). July Industrial Sales 8.1% m/m (last 13.6%); -8.1% yr/yr (last -16.4%) In news: British Foreign Minister, Dominic Raab, said that there is no risk of a hard border being established in Ireland as a result of the planned changes to the Brexit deal. Advisers to Prime Minister, Boris Johnson, are reportedly recommending a two-week lockdown in October. Some ECB members are reportedly in favor of removing the ban on dividend payments from banks. U.S equity futures: S&P 500 Futures +1 @ 3352 DJIA Futures -62 @ 27757 Nasdaq Futures +47 @ 11122 Overseas: Europe: DAX +0.4%, FTSE -0.1%, CAC -0.1% Asia: Nikkei +0.2%, Hang Seng +0.5%, Shanghai +2.1% Commodities: Crude Oil -0.24 @ 40.73 Nat Gas -0.101 @ 1.943 Gold -9.40 @ 1959.30 Silver +0.140 @ 27.24 Copper +0.005 @ 3.0765 U.S. Summary: Earnings/Guidance (Full Earnings Calendar): DTE Energy (DTE) reaffirms 2020 operating EPS guidance; confirms 5-7% operating EPS growth target through 2024 SSR Mining (SSRM) sees FY20 production outlook at 680,000 to 760,000 gold equivalent ounces Steel Dynamics (STLD) guides Q3 EPS above consensus General News: The Department of Commerce today announced prohibitions on transactions relating to mobile applications WeChat and TikTok, as of Sept. 20, to safeguard the national security of the United States Democrats in swing district elections are pushing House Speaker Nancy Pelosi (D-CA) to strike a deal with President Trump on stimulus after he said he will support a larger package, according to Washington Post Congress close to deal to fund government through mid-December and a avoid a shutdown (this will not include stimulus), according to The Wall Street Journal Dr. Anthony Fauci says he would "still put money on" an expected coronavirus vaccine in November or December, according to CNN Fed releases hypothetical scenarios for a second round of bank stress tests House postpones vote on bill that would legalize marijuana following backlash from moderate Democrats, according to USA Today Federal judge blocks USPS from making changes that could delay mail, according to Reuters Ayala Pharmaceuticals (AYLA) presents "positive" interim data from Phase 2 ACCURACY trial of AL101 for the treatment of recurrent/metastatic adenoid cystic carcinoma with notch activating mutations AstraZeneca (AZN): IMFINZI Demonstrated unprecedented survival in unresectable stage III non-small cell lung cancer with an estimated 50% of patients surviving four years Camping World (CWH) increases quarterly special dividend to $0.14/share from $0.08/share Con Edison (ED) appoints Timothy Cawley as CEO, effective January 1 Delta (DAL) reaches tentative deal to reduce furloughs by 220 positions, according to Reuters Facebook (FB) sued for allegedly spying on Instagram users, according to Bloomberg Goldman Sachs (GS) sends traders home after case of coronavirus, according to Bloomberg Merck (MRK): LYNPARZA improved median progression-free survival to over four and a half years compared to 13.8 months with placebo for patients with BRCA-Mutated Advanced Ovarian Cancer Seattle Genetics (SGEN) and Astellas (ALPMY) report PADCEV significantly improved overall survival in Phase 3 trial Texas Instruments (TXN) raises quarterly cash dividend to $1.02/share from $0.90/share UPS (UPS) will offer buyouts to management workers, according to The Wall Street Journal M&A: Apollo Global Management (APO) considering takeover of Covestro (COVTY), according to BloombergQuint Ericsson (ERIC) acquires private co Cradlepoint for $1.1 bln Oracle (ORCL) and Walmart (WMT) could come together to own significant stake in TikTok, according to The Wall Street Journal OUTFRONT Media (OUT) announces sale of Sports Marketing segment; terms not disclosed Pivotal Investment Corporation (PIC) acquires XL Fleet for implied enterprise value of ~$1 bln Syndicate: Autolus Therapeutics (AUTL) entered into $100 mln Open Market Sale Agreement Celsius (CELH) files for 2,745,098 share common stock offering by selling shareholders Essential Properties Realty Trust (EPRT) prices offering of 8.8 mln shares of common stock at $19.00 per share OneWater Marine (ONEW) prices offering of 3,170,868 shares of its Class A common stock at $20.00 per share IPOs: Priced to Trade: Athira Pharma (Nasdaq: ATHA) upsizes offering by 2 mln shares and prices 12 mln share IPO at $17 per share, the high-end of the $15-17 price range COMPASS Pathways (Nasdaq: CMPS) prices upsized 7.5 mln share IPO at $17, above initial $14-16 range Unity Software (NYSE: U): The leading platform for creating and operating interactive, real-time 3D content prices 25 mln share IPO at $52.00 per share, above the expected range of $34-42 Vitru (Nasdaq: VTRU): The leading distance learning education group in postsecondary digital education market in Brazil downsizes offering by ~5.2 mln shares and prices 6 mln share IPO at $16.00 per share, at the low end of the revised range of $16-18 Gapping Up/Down Gapping up: KZR +10.1%, KGC +5.2%, KODK +4.3%, IDA +4.2%, BJ +2.6%, STLD +2.4%, MOR +2.2%, IMAB +2.1%, ED +0.9%, CWH +0.8%, QGEN +0.8% Gapping down: CKPT -14.2%, EPRT -3.3%, MGM -1.5%, AFIB -1.4%, PCG -1.1%, CELH -0.5%, DTE -0.5% Analyst Research (see Upgrades/Downgrades calendarfor full list): Upgrades: Dave & Buster's (PLAY) upgraded to Buy from Hold at Stifel; tgt $20 Dave & Buster's (PLAY) upgraded to Outperform from Mkt Perform at Raymond James; tgt $20 Fox Factory Holding (FOXF) upgraded to Buy from Hold at Stifel; tgt $97 Healthcare Realty (HR) upgraded to Overweight from Equal Weight at CapitalOne; tgt $33 II-VI (IIVI) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $45 SunPower (SPWR) upgraded to Equal-Weight from Underweight at Morgan Stanley Downgrades: Apartment Investment & Mgmt (AIV) downgraded to Sell from Neutral at Citigroup; tgt lowered to $33 Beyond Meat (BYND) downgraded to Underweight from Neutral at JP Morgan; tgt $122 Mirati Therapeutics (MRTX) downgraded to Neutral from Buy at Citigroup; tgt raised to $183 NovoCure (NVCR) downgraded to Equal Weight from Overweight at Wells Fargo; tgt $116 Others: Abeona Therapeutics (ABEO) initiated with a Buy at B. Riley FBR; tgt $5 Argo Group (ARGO) initiated with a Buy at Compass Point; tgt $41 BioLife Solutions (BLFS) initiated with an Outperform at Cowen; tgt $33 Construction Partners (ROAD) initiated with a Buy at Stifel; tgt $21 Intellia Therapeutics (NTLA) initiated with a Buy at Goldman; tgt $33 Intuit (INTU) initiated with an Overweight at Piper Sandler; tgt $351 James River Group (JRVR) initiated with a Neutral at Compass Point; tgt $52 Kinsale Capital (KNSL) initiated with a Neutral at Compass Point; tgt $202 Krystal Biotech (KRYS) initiated with a Buy at B. Riley FBR; tgt $100 Retrophin (RTRX) initiated with an Outperform at Wedbush; tgt $33 RLI Corp (RLI) initiated with a Neutral at Compass Point; tgt $90 Upcoming Events: Econ Data: 08:30 ET: Q2 Current Account Balance (Briefing.com consensus -$146.30 bln; prior -$104.20 bln) 10:00 ET: August Leading Indicators (Briefing.com consensus 1.4%; prior 1.4%) 10:00 ET: September Michigan Consumer Sentiment Survey (Briefing.com consensus 77.0; prior 74.1) 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 18) None Confirmed Full Earnings Calendar Asia & Europe detail: Asia: Nikkei +0.2%, Hang Seng +0.5%, Shanghai +2.1% Equity indices in the Asia-Pacific region ended the week on a mostly higher note. Japan's Prime Minister, Yoshihide Suga, has reportedly asked his communication minister to pursue lower cell phone service fees. China's PLA will hold exercises in the Taiwan Strait at an unspecified time. Japan's Nikkei will be closed for holidays on Monday and Tuesday. In economic data: Japan's August CPI 0.2% m/m (last 0.1%). August National CPI 0.2% yr/yr (last 0.3%) and August National Core CPI -0.4% yr/yr (expected -0.4%; last 0.0%) ---Equity Markets--- Japan's Nikkei: +0.2% (-0.2% for the week) Hong Kong's Hang Seng: +0.5% (-0.2% for the week) China's Shanghai Composite: +2.1% (+2.4% for the week) India's Sensex: -0.3% (UNCH for the week) South Korea's Kospi: +0.3% (+0.7% for the week) Australia's ASX All Ordinaries: -0.2% (+0.3% for the week) ---FX--- USD/JPY: -0.4% to 104.31 USD/CNH: UNCH at 6.7545 USD/INR: -0.3% to 73.41 Europe: DAX +0.4%, FTSE -0.1%, CAC -0.1% Major European indices trade near their flat lines. British Foreign Minister, Dominic Raab, said that there is no risk of a hard border being established in Ireland as a result of the planned changes to the Brexit deal. Advisers to Prime Minister, Boris Johnson, are reportedly recommending a two-week lockdown in October. Some ECB members are reportedly in favor of removing the ban on dividend payments from banks. In economic data: Eurozone's July Current Account surplus EUR16.60 bln (last surplus of EUR20.70 bln) Germany's August PPI 0.0% m/m (expected -0.1%; last 0.2%); -1.2% yr/yr (expected -1.4%; last -1.7%) U.K.'s August Retail Sales 0.8% m/m (expected 0.7%; last 3.7%); 2.8% yr/yr (expected 3.0%; last 1.4%). August Core Retail Sales 0.6% m/m (expected 0.4%; last 2.1%); 4.3% yr/yr (expected 4.2%; last 3.1%) Italy's July Industrial New Orders 3.7% m/m (last 23.7%); -7.2% yr/yr (last -11.6%). July Industrial Sales 8.1% m/m (last 13.6%); -8.1% yr/yr (last -16.4%) ---Equity Markets--- STOXX Europe 600: +0.1% (+1.0% week-to-date) Germany's DAX: +0.4% (+0.4% week-to-date) U.K.'s FTSE 100: -0.1% (+0.2% week-to-date) France's CAC 40: -0.1% (UNCH week-to-date) Italy's FTSE MIB: -0.1% (-0.5% week-to-date) Spain's IBEX 35: -1.3% (+0.8% week-to-date) ---FX--- EUR/USD: UNCH at 1.1840 GBP/USD: +0.1% to 1.2982 USD/CHF: +0.2% to 0.9098