Daily morning's briefing.

U.S. equity index futures are in retreat mode, extending three straight weeks of losses, as investors weigh the increased state of uncertainty in the market. Currently, the S&P 500 futures are down 43 points and trade 1.3% below fair value. There's political uncertainty following the death of Supreme Court Justice Ruth Bader Ginsburg; there's trade uncertainty after China announced provisions of its unreliable entity list without citing specific companies; there's banking uncertainty amid reports that several global banks, including JPMorgan Chase (JPM 93.65, -4.70, -4.8%), overlooked money laundering for nearly 20 years; and there's coronavirus uncertainty amid rising cases in Europe. There's less uncertainty on the TikTok front, however, after Oracle (ORCL 61.53, +1.78, +3.1%) and Walmart (WMT 136.34, +1.05, +0.8%) received tentative approval from the U.S. government regarding a deal. Shares of both companies are trading higher in pre-market action and both would receive a cumulative 20% stake in a new TikTok Global business. Longer-dated U.S. Treasuries are trading higher amid all the uncertainty and weakness in equity futures. The 2-yr yield is up one basis point to 0.14%, while the 10-yr yield is down three basis points to 0.66%. The U.S. Dollar Index is up 0.4% to 93.28. WTI crude futures are down 1.8% to $40.38/bbl. The CBOE Volatility Index is up 16.7% to 30.13. In U.S. Corporate news: Oracle (ORCL 61.53, +1.78): +3.1% after receiving tentative U.S. Government approval for TikTok. Walmart (WMT 136.34, +1.05, +0.8%) will be included in the deal that gives ORCL and WMT a 20% cumulative stake in a new TikTok Global business. JPMorgan Chase (JPM 93.65, -4.70): -4.8% amid reports that it was unknowingly involved in transferring large sums of illicit money over a span of nearly 20 years. Nikola (NKLA 23.90, -10.29): -30.1% after its founder and Chairman, Trevor Milton, resigned from the Board amid allegations of fraud. Illumina (ILMN 286.30, -9.20): -3.1% after agreeing to buy Grail for $8 billion in cash and stock. Reviewing overnight developments: Equity indices in the Asia-Pacific region were down across the board, yet Japan's Nikkei was exempt from the negative price action as it was closed for a holiday. Japan's Nikkei: closed for holiday Hong Kong's Hang Seng: -2.1%, China's Shanghai Composite: -0.6%, India's Sensex: -2.1%, South Korea's Kospi: -1.0%, Australia's ASX All Ordinaries: -0.7%. In economic data: People's Bank of China leaves one-year loan prime rate unchanged at 3.85% (expected 3.85%; last 3.85%) Hong Kong's August CPI -0.4% yr/yr (last -2.3%) In news: The negative bias was fueled predominately by a heightened sense of uncertainty regarding reports of rising coronavirus cases in Europe, increased political tension in the U.S. following the death of Supreme Court Justice Ruth Bader Ginsburg, ongoing difficulties for the U.S. stock market, and news that several banks have not done enough to prevent money laundering efforts. Lots of attention being paid to China announcing provisions of its unreliable entity list without citing specific companies and news that President Trump has agreed to the provisions of a deal that will keep TikTok running in the U.S. A federal judge has for the moment blocked the order that would have materially curtailed WeChat's U.S. operations. Major European indices are suffering sharp losses to begin the week. STOXX Europe 600: -2.8%, Germany's DAX: -3.3%, U.K.'s FTSE 100: -3.4%, France's CAC 40: -3.2%, Italy's FTSE MIB: -3.3%, Spain's IBEX 35: -3.2%. In economic data: Spain's July Trade Balance EUR -0.31B (last EUR 1.48B) In news: Worries about new lockdown measures being imposed to curb rising coronavirus case counts are at the heart of today's selling; however, other factors are also in play. Banks are getting hit amid reports that several, including Deutsche Bank, were allegedly not aggressive enough with efforts to prevent money laundering; Germany could be on the brink of seeing a public sector worker strike; and the U.S. stock market looks poised to continue its pullback amid heightened political tension related to stimulus negotiations and the fight brewing over a new Supreme Court nominee following the death of Ruth Bader Ginsburg. S&P revised its outlook for Spain's sovereign rating to Negative from Stable, but affirmed the rating at 'A.' U.S equity futures: S&P 500 Futures -50 @ 3266 DJIA Futures -517 @ 27085 Nasdaq Futures -143 @ 10785 Overseas: Europe: DAX -3.3%, FTSE -3.4%, CAC -3.2% Asia: Nikkei CLOSED, Hang Seng -2.1%, Shanghai -0.6% Commodities: Crude Oil -0.80 @ 40.52 Nat Gas -0.027 @ 2.021 Gold -24.15 @ 1937.95 Silver -0.684 @ 26.445 Copper -0.0253 @ 3.0907 U.S. Summary: Earnings/Guidance (Full Earnings Calendar): Ennis (EBF) beats bottom line single estimate; misses on revs General News: Supreme Court Justice Ruth Bader Ginsburg passed away at age 87. Senators Susan Collins (R-ME) and Senator Lisa Murkowski (R-AK) say they will wait until after the election to confirm a nominee (Republicans have a 53-47 majority in the Senate). President Trump says he will nominate a woman to the high court. Amy Coney Barrett & Barbara Lagoa are possible contenders House Speaker Nancy Pelosi says she will use "use every arrow in our quiver" to stop Supreme Court replacement, but she will not leverage a government shutdown to slow down the nomination, according to ABC News House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin have not yet agreed on government funding deal to avoid shutdown (funding expires September 30 and this will not include stimulus), according to the Washington Post China has threatened US corporations with sanctions following WeChat ban, according to the Washington Post ByteDance seeking $60 bln valuation, according to Bloomberg Judge halts US order to ban WeChat (TCEHY) from app stores, according to Reuters ECB to review bond purchase program, according to the Financial Times New York seeking independent probe of nursing home coronavirus deaths, according to the Wall Street Journal Several global banks allegedly moved large sums of allegedly illicit funds over period of 20 years, according to Reuters US will deploy a small number of U.S. troops to Syria, according to NBCNews Agios Pharma (AGIO) presents final overall survival data from Phase 3 ClarIDHy study of TIBSOVO Alexion Receives (ALXN) CHMP Positive Opinion for New Advanced Formulation of ULTOMIRIS (ravulizumab) with Significantly Reduced Infusion Time Algonquin Power & Utilities (AQN) names Arthur Kacprzak as CFO, assuming the role upon the retirement of CFO David Bronicheski Amgen's (AMGN) Clinical Data From Full Phase 1 Cohort Of Investigational Sotorasib Published In New England Journal Of Medicine AstraZeneca (AZN) US coronavirus vaccine trial still on hold AstraZeneca's (AZN) TAGRISSO Reduced the Risk of Disease Recurrence in the Brain by 82% in the Adjuvant Treatment of Early-Stage EGFR-Mutated Lung Cancer Axsome Therapeutics (AXSM) announces expedited development of AXS-12 for the treatment of narcolepsy based on FDA breakthrough therapy meeting Blueprint Medicines (BPMC) Reports ARROW Trial Data at ESMO Virtual Congress 2020 Demonstrating Durable Clinical Benefits of GAVRETO (Pralsetinib) in Patients with Advanced RET-Mutant Medullary Thyroid Cancer Eli Lilly's (LLY) Verzenio Significantly Reduced the Risk of Cancer Recurrence by 25% for People with HR+, HER2- High Risk Early Breast Cancer Genentech (RHHBY) Presents New Data From Multiple Phase III Studies of Tecentriq in Triple-Negative Breast Cancer at ESMO Virtual Congress 2020 Hecla Mining (HL) increases 2020 production estimates, repays revolving credit facility Immunomedics (IMMU) Announces Positive Results from Pivotal Phase 2 TROPHY U-01 Study of Trodelvy in Metastatic Urothelial Cancer Legend Biotech (LEGN) announces its Board of Directors has appointed Dr. Ying Huang as interim Chief Executive Officer, effective immediately MacroGenics (MGNX) Announces Presentation of MGD019 Phase 1 Data at the ESMO Virtual Congress 2020 Merck (MRK) Lynparza recommended for approval in EU by CHMP as first-line maintenance treatment with bevacizumab for HRD-positive advanced ovarian cancer Merck's (MRK) KEYTRUDA (pembrolizumab) Reduced the Risk of Distant Metastasis or Death by 40% Versus Placebo as Adjuvant Treatment in Resected, High-Risk Stage III Melanoma Merck (MRK) Presents Promising New Data for Three Investigational Medicines From Diverse and Expansive Oncology Pipeline at ESMO Virtual Congress 2020 Nikola Corporation (NKLA) appoints new Chairman after Trevor Milton steps down Oracle (ORCL) and Walmart (WMT) receive tentative U.S. Government approval for TikTok Precision BioSciences (DTIL) and SpringWorks Therapeutics (SWTX) announce clinical collaboration to evaluate PBCAR269A in combination with nirogacestat in patients with relapsed or refractory multiple myeloma Roche Hldg (RHHBY) acquires Inflazome Roku (ROKU) and Comcast (CMCSA) reach deal to carry Peacock on Roku devices, according to The Verge TC Energy (TRP) announces Russ Girling to retire as CEO and from Board of Directors, effective December 31, 2020 VICI Properties (VICI) provides a $400 mln mortgage loan to a subsidiary of Caesars Entertainment (CZR) that is secured by the Caesars Forum Convention Center in Las Vegas M&A: 51job (JOBS) announces formation of special committee to evaluate and consider non-binding proposal or any alternative strategic option Illumina (ILMN) to acquire GRAIL for cash and stock consideration of $8 bln upon closing of the transaction Legacy Acquisition Corp (LGC) and Onyx Enterprises Int'l Corp announce business combination Syndicate: Adicet Bio (ACET) commences an underwritten public offering of 4,500,000 shares of its common stock Covanta (CVA) files mixed securities shelf offering International Money Express (IMXI) files for 8,820,499 share common stock offering by selling shareholders PennyMac (PFSI) announces proposed private offering of $400 million of senior notes Suzano S.A. (SUZ) files for common stock / ADS offering by selling shareholder IPOs: Expected to Price: Bentley Systems (Nasdaq: BSY): The provider of software for infrastructure engineering is expected to price its 10.8 M share IPO between $17-$19. Corsair Gaming (Nasdaq: CRSR): The provider of high-performance gear for gamers and content creators is expected to price its 14.0 M share IPO between $16-$18. GoodRx Holdings (Nasdaq: GDRX): The provider of a leading, consumer-focused digital healthcare platform in the United States is expected to price its 34.6 M share IPO between $24-$28. 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 this week. Taysha Gene Therapies (Nasdaq: TSHA): The gene therapy company focused on developing AAV-based gene therapies for the treatment of monogenic diseases of the central nervous system is expected to price its 6.6 M share IPO between $18-$20. Gapping Up/Down Gapping up: VXX +4.5%, ORCL +4.5%, VICI +3.5%, WMT +1% Gapping down: NKLA -36%, LEGN -10.4%, AWH -4.9%, HL -3%, CHU -2.2%, IWM -2.1%, DIA -1.8%, AAPL -1.7%, QQQ -1.4%, MSFT -1.4%, SPY -1.3% Analyst Research (see Upgrades/Downgrades calendarfor full list): Upgrades: AllianceBernstein (AB) upgraded to Buy from Neutral at BofA Securities American States Water (AWR) upgraded to Overweight from Equal Weight at Wells Fargo; tgt $79 Aurora Cannabis (ACB) upgraded to Hold from Underperform at Jefferies Axcelis Tech (ACLS) upgraded to Buy from Hold at Stifel; tgt $26 Brooks Automation (BRKS) upgraded to Buy from Hold at Stifel; tgt $52 Capri Holdings (CPRI) upgraded to Overweight from Equal-Weight at Morgan Stanley Dunkin (DNKN) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $89 Forterra (FRTA) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $17 Globant (GLOB) upgraded to Outperform from Market Perform at Itau BBA; tgt $220 Greif (GEF) upgraded to Buy from Underperform at BofA Securities; tgt $46 ICHOR Corporation (ICHR) upgraded to Buy from Hold at Stifel; tgt $31 Illumina (ILMN) upgraded to Buy from Neutral at Guggenheim; tgt $345 KLA Corporation (KLAC) upgraded to Buy from Hold at Stifel; tgt $211 Kornit Digital (KRNT) upgraded to Buy from Neutral at Citigroup; tgt raised to $70 Lam Research (LRCX) upgraded to Buy from Hold at Stifel; tgt $352 LG Display (LPL) upgraded to Outperform from Neutral at Daiwa Securities Liberty Global (LBTYA) upgraded to Equal Weight from Underweight at Barclays; tgt raised to $30 Meritage (MTH) upgraded to Overweight from Equal Weight at Wells Fargo; tgt $120 NorthWestern (NWE) upgraded to Overweight from Equal Weight at Barclays; tgt lowered to $59 Oracle (ORCL) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $68 Portland Gen Elec (POR) upgraded to Equal Weight from Underweight at Barclays; tgt lowered to $38 Portland Gen Elec (POR) upgraded to Buy from Neutral at Mizuho; tgt $38 Public Storage (PSA) upgraded to Equal-Weight from Underweight at Morgan Stanley; tgt $203 Scientific Games (SGMS) upgraded to Buy from Hold at Jefferies; tgt $50 Southern (SO) upgraded to Overweight from Equal Weight at Barclays; tgt $61 Tanger Factory (SKT) upgraded to Sector Weight from Underweight at KeyBanc Capital Markets Tapestry (TPR) upgraded to Overweight from Neutral at Piper Sandler; tgt raised to $26 Tilray (TLRY) upgraded to Hold from Underperform at Jefferies; tgt $5.60 Ultra Clean Holdings (UCTT) upgraded to Buy from Hold at Stifel; tgt $26 UMH Properties (UMH) upgraded to Buy from Neutral at DA Davidson; tgt $17 Downgrades: Alliant Energy (LNT) downgraded to Equal Weight from Overweight at Barclays; tgt $56 Ameren (AEE) downgraded to Underweight from Equal Weight at Barclays; tgt $79 American Campus Communities (ACC) downgraded to Neutral from Overweight at Piper Sandler; tgt $38 Automatic Data (ADP) downgraded to Market Perform from Outperform at Cowen; tgt lowered to $143 CMS Energy (CMS) downgraded to Equal Weight from Overweight at Barclays; tgt $65 HCA (HCA) downgraded to Neutral from Overweight at JP Morgan; tgt lowered to $143 Intercontinental Hotels Group (IHG) downgraded to Sell from Neutral at Bryan Garnier Melco Resorts & Entertainment (MLCO) downgraded to Neutral from Outperform at Credit Suisse Tenet Healthcare (THC) downgraded to Underweight from Neutral at JP Morgan; tgt $20 Universal Health (UHS) downgraded to Underweight from Neutral at JP Morgan; tgt lowered to $115 Viomi Technology (VIOT) downgraded to Equal-Weight from Overweight at Morgan Stanley Others: BJ's Wholesale (BJ) added to Conviction Buy List at Goldman; tgt $50 Boeing (BA) added to Conviction Buy List at Goldman; tgt $225 Carrier Global (CARR) initiated with a Buy at Goldman; tgt $35 Cormedix (CRMD) initiated with a Buy at Truist; tgt $20 Essent Group (ESNT) initiated with a Buy at Goldman; tgt $46 KE Holdings (BEKE) initiated with a Neutral at BofA Securities; tgt $59 L3Harris (LHX) removed from Conviction Buy List at Goldman; tgt $224 Minerals Tech (MTX) initiated with a Buy at Seaport Global Securities; tgt $65 Raytheon Technologies (RTX) added to Conviction Buy List at Goldman; tgt $86 Snowflake (SNOW) initiated with a Sell at Summit Insights; tgt $175 TTM Tech (TTMI) initiated with an Outperform at SMBC Nikko Xpeng Inc. (XPEV) initiated with a Buy at BofA Securities Zoetis (ZTS) initiated with an Overweight at Atlantic Equities; tgt $191 Upcoming Events: Econ Data: No economic data releases. Asia & Europe detail: Asia: Nikkei CLOSED, Hang Seng -2.1%, Shanghai -0.6% Equity indices in the Asia-Pacific region were down across the board, yet Japan's Nikkei was exempt from the negative price action as it was closed for a holiday. The negative bias was fueled predominately by a heightened sense of uncertainty regarding reports of rising coronavirus cases in Europe, increased political tension in the U.S. following the death of Supreme Court Justice Ruth Bader Ginsburg, ongoing difficulties for the U.S. stock market, and news that several banks have not done enough to prevent money laundering efforts. Separately, lots of attention being paid to China announcing provisions of its unreliable entity list without citing specific companies and news that President Trump has agreed to the provisions of a deal that will keep TikTok running in the U.S. On a related note, a federal judge has for the moment blocked the order that would have materially curtailed WeChat's U.S. operations. In economic data: People's Bank of China leaves one-year loan prime rate unchanged at 3.85% (expected 3.85%; last 3.85%) Hong Kong's August CPI -0.4% yr/yr (last -2.3%) ---Equity Markets--- Japan's Nikkei: closed for holiday Hong Kong's Hang Seng: -2.1% China's Shanghai Composite: -0.6% India's Sensex: -2.1% South Korea's Kospi: -1.0% Australia's ASX All Ordinaries: -0.7% ---FX--- USD/JPY: -0.5% to 104.04 USD/CNH: +0.1% to 6.7840 USD/INR: -0.1% to 73.50 Europe: DAX -3.3%, FTSE -3.4%, CAC -3.2% Major European indices are suffering sharp losses to begin the week. Worries about new lockdown measures being imposed to curb rising coronavirus case counts are at the heart of today's selling; however, other factors are also in play. Banks are getting hit amid reports that several, including Deutsche Bank, were allegedly not aggressive enough with efforts to prevent money laundering; Germany could be on the brink of seeing a public sector worker strike; and the U.S. stock market looks poised to continue its pullback amid heightened political tension related to stimulus negotiations and the fight brewing over a new Supreme Court nominee following the death of Ruth Bader Ginsburg. Separately, S&P revised its outlook for Spain's sovereign rating to Negative from Stable, but affirmed the rating at 'A.' In economic data: Spain's July Trade Balance EUR -0.31B (last EUR 1.48B) ---Equity Markets--- STOXX Europe 600: -2.8% Germany's DAX: -3.3% U.K.'s FTSE 100: -3.4% France's CAC 40: -3.2% Italy's FTSE MIB: -3.3% Spain's IBEX 35: -3.2% ---FX--- EUR/USD:-0.4% to 1.1786 GBP/USD: -0.4% to 1.2864 USD/CHF: +0.2% to 0.9131