DAILY MORNING BRIEFING

The S&P 500 futures trade 13 points, or 0.4%, above fair value, as gains carry over from yesterday's rebound amid optimism for targeted fiscal relief and coronavirus treatments. On the topic of treatments, Regeneron (REGN 617.90, +26.21, +4.4%) has followed Eli Lilly's (LLY 151.70, +2.74, +1.8%) lead and submitted a request to the FDA for emergency use authorization for its COVID-19 antibody treatment. President Trump said Regeneron's therapy was key to his recovery. Other positive factors this morning include Taiwan Semiconductor (TSM 89.00, +2.08, +2.4%) reporting a 25% yr/yr jump in September revenue and IBM (IBM 139.00, +14.93, +12.0%) announcing plans to spin off its Managed Infrastructure Services unit and accelerate its hybrid cloud growth strategy. In economic data, investors will receive the weekly Initial Claims (Briefing.com consensus 830,000) and Continuing Claims report at 8:30 a.m. ET. No other notable data will be provided today. In the U.S. Treasury market, the 2-yr yield remains flat at 0.15%, while the 10-yr yield edges lower by two basis points to 0.77% amid an uptick in demand. The U.S. Dollar Index is up 0.1% to 93.67. WTI crude futures are up 1.8%, or $0.71, to $40.66/bbl. In U.S. Corporate news: Regeneron (REGN 617.90, +26.21): +4.4% after submitting a request to the FDA for an emergency use authorization for its COVID-19 antibody treatment. President Trump said its therapy was key to his recovery. IBM (IBM 139.00, +14.93): +12.0% after announcing it will accelerate its hybrid cloud growth strategy. In addition, IBM will spin off its Managed Infrastructure Services unit into a new public company. Taiwan Semi (TSM 89.00, +2.08): +2.4 after reporting a 25% yr/yr jump in September revenue. Morgan Stanley (MS 48.01, -0.71): -1.4% after agreeing to acquire Eaton Vance (EV 58.70, +17.76, +43.4%) for about $7 billion in cash and stock. Domino's Pizza (DPZ 406.11, -29.94): -5.8% despite beating top and bottom-line estimates. Reviewing overnight developments: Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note while markets in China remained closed before reopening tomorrow. Japan's Nikkei: +1.0%, Hong Kong's Hang Seng: -0.2%, China's Shanghai Composite: CLOSED, India's Sensex: +0.8%, South Korea's Kospi: +0.2%, Australia's ASX All Ordinaries: +1.1%, In economic data: Japan's August Current Account surplus JPY1.65 trln (last surplus of JPY960 bln). September Economy Watchers Current Index 49.3 (last 43.9) New Zealand's ANZ October Business Confidence -14.5 (last -28.5) In news: Samsung issued better than expected guidance for Q3 while LG said it expects its best Q3 in its history. Taiwan Semiconductor reported a 25% yr/yr jump in September revenue. Japan will reportedly lower its travel advisory levels for certain countries on November 1. Reserve Bank of New Zealand Assistant Governor, Christian Hawkesby, said that the central bank is actively working on funding for its lending program and on negative rates. Major European indices trade in the green. STOXX Europe 600: +0.6%, Germany's DAX: +0.6%, U.K.'s FTSE 100: +0.5%, France's CAC 40: +0.5%, Italy's FTSE MIB: +0.6%, Spain's IBEX 35: +1.2%. In economic data: Germany's August trade surplus EUR15.70 bln (expected surplus of EUR18.20 bln; last surplus of EUR18.00 bln). August Imports 5.8% m/m (expected 1.4%; last 1.1%) and Exports 2.4% (expected 1.4%; last 4.7%) Swiss September Unemployment Rate 3.3% (expected 3.4%; last 3.4%) In news: A regional court in Madrid blocked a government order calling for a new partial lockdown in the city and nine nearby towns.Meanwhile, restrictions in the U.K. are expected to be tightened next week. Spain's Economy Minister said that debt issuance in 2020 will be lowered by EUR15 bln to EUR115 bln. Bank of England Governor, Andrew Bailey, said that output in Q3 is expected to be 7-10% below pre-crisis levels. U.S equity futures: S&P 500 Futures +16 @ 3423 DJIA Futures +192 @ 28371 Nasdaq Futures +87 @ 11557 Overseas: Europe: DAX +0.6%, FTSE +0.5%, CAC +0.5% Asia: Nikkei +1.0%, Hang Seng -0.2%, Shanghai CLOSED Commodities: Crude Oil +0.75 @ 40.70 Nat Gas -0.038 @ 2.568 Gold +4.65 @ 1895.45 Silver +0.169 @ 24.065 Copper -0.0107 @ 3.0223 U.S. Summary: Earnings/Guidance (Full Earnings Calendar): Alphatec (ATEC) guides Q3 revenue above consensus ASE Technology (ASX) reports Sep revs increased 6.8% yr/yr to NT$43.9 bln Bausch Health (BHC) sees Q3 revs above consensus; sees FY20 revs in line Buckle (BKE) reports September comparable sales increased 22.9% yr/yr Cabot Oil & Gas (COG) provides operational update for Q3 and 2020 CareDx (CDNA) guides Q3 revenue above consensus ChipMOS TECHNOLOGIES (IMOS) reports Q3 prelim revs of NT$5686.2 vs. $5.7 bln S&P Capital IQ Consensus Citigroup (C): Federal Reserve announces enforcement action against Citigroup that requires the firm to correct several longstanding deficiencies Costco (COST) reports September total adjusted comparable sales growth of 16.9% Domino's Pizza (DPZ) beats by $0.07, beats on revs Endeavour Silver (EXK) reports Q3 production Helen of Troy (HELE) beats by $1.45, beats on revs IBM (IBM) provides in line Q3 guidance Norfolk Southern (NSC) guides Q3 revenue in-line with consensus Resources Connection (RGP) beats by $0.09, misses on revs Samsung (SSNLF) sees Q3 sales of KRW65-67 tln; sees operating profit of KRW12.2-12.4 tln Taiwan Semi (TSM) reports Q3 revs above consensus Talos Energy (TALO) provides H2 production outlook United Micro (UMC) reports Sep revs increased 34.3% yr/yr to NT$14.5 bln General News: House Speaker Nancy Pelosi (D-CA) and Treasury Secretary Steven Mnuchin are discussing airline relief deal, but it is unclear if it has support of Republicans in Congress Last night was VP debate between VP Mike Pence and Senator Kamala Harris DOJ removes prohibition on election fraud investigations DC Mayor extends the District's public emergency and public health emergency and issues additional measures for Phase Two thru end of 2020 Manhattan apartment rents fell 11% to the lowest level since 2013, according to Bloomberg AMC Entertainment (AMC) gets approval to reopen theatre in Thousand Oaks, CA Arrowhead (ARWR) and Takeda (TAK) announced a collaboration and licensing agreement to develop ARO-AAT to treat alpha-1 antitrypsin-associated liver disease Boeing (BA) says its Space Force Satellite passes design review Chevron (CVX) employees are being asked to reapply for jobs amid restructuring which could eliminate 15% of workforce, according to Reuters Coty (COTY) launches direct-to-consumer flagship websites for Kylie Skin in the UK, France, Germany and Australia DTE Energy (DTE) mulling sale of spin off of non-utility units, according to Bloomberg Eli Lilly (LLY) announces arrangement for supply of potential COVID-19 antibody therapy for low- and middle-income countries Facebook (FB) to temporarily stop running all social issue, electoral, or political ads in the US after the polls close on November 3 Facebook (FB): US House antitrust chairman says that he'd be ok with unwinding Instagram purchase, according to Reuters Gilead Sciences (GILD) signs joint procurement agreement with EC for remdesivir Google (GOOG): French appeals court rules Google must pay publishing companies for their content, according to Reuters Guidewire Software (GWRE) authorizes a stock repurchase program of up to $200 mln of common stock Hasbro's (HAS) President and Chief Operating Officer will retire when his contract ends on March 31, 2021 IBM (IBM) to accelerate hybrid cloud growth strategy and execute spin-off of market-leading managed infrastructure services unit; provides in line Q3 guidance ICF International (ICFI) recently awarded two contracts valued up to $125 mln by U.S. Department of Health and Human Services' Children's Bureau IMV (IMV) provides updates on its vaccine candidate, DPX-COVID-19, for the prevention of infection caused by the novel coronavirus SARS-COV-2 InterActiveCorp (IAC) provides monthly metrics, including for ANGI Jazz Pharma (JAZZ) announces top-line results from the Phase 3 double-blind, multicenter, placebo-controlled, randomized withdrawal study evaluating the efficacy and safety of an investigational use of Xywav (calcium, magnesium, potassium, and sodium oxybates) oral solution in adult patients with idiopathic hypersomnia Lockheed Martin (LMT): Qatar requests to buy stealthy F-35 fighter jets, according to Reuters Merck (MRK) announces week 96 data from phase 2b study evaluating islatravir in combination with doravirine in adults with HIV-1 Infection Moderna (MRNA) announces updates on respiratory syncytial virus vaccine program Moderna (MRNA): DARPA awards MRNA up to $56 mln to enable small-scale, rapid mobile manufacturing of nucleic acid vaccines and therapeutics NVIDIA (NVDA): Arm exec says co will keep firewalls in place if sale to NVDA goes through, according to Reuters Paycom Software (PAYC): CEO sold 90,000 shares Oct 5-6 Pfizer (PFE) and OPKO Health (OPK) announce positive phase 3 top-line results for once-weekly investigational long-acting human growth hormone to treat children with growth hormone deficiency Pioneer Natural Resources (PXD) announces executive changes; Executive Vice President and CFO has been named President and COO Regeneron Pharma (REGN) submitted a request to the FDA for an emergency use authorization for its REGN-COV2 investigational antibody combination for COVID-19 Regeneron Pharma (REGN) moves higher after hours as Pres Trump tweets video about it Ross Stores (ROST) terminates $500 mln revolving credit facility as it's not needed Tempur Sealy Int'l (TPX) is reacquiring the rights and acquiring the assets to manufacture, market, and distribute Sealy and Stearns & Foster branded products in the United Kingdom from its current licensee Tesla (TSLA) CEO Elon Musk says company will produce Model Y with a new structural battery design at Berlin factory which could result in "significant production risk.", according to Reuters Translate Bio (TBIO) Highlights mRNA Platform Potential for the Treatment of Cystic Fibrosis at the 34th Annual North American Cystic Fibrosis Conference Yamana Gold (AUY) increases its annual dividend by a further 50% to $0.105 per share, effective for 4Q20 M&A: Altair Engineering (ALTR) acquires M-Base Engineering + Software GmbH BrightView (BV) acquires Commercial Tree Care, Inc.; terms not disclosed Dun & Bradstreet (DNB) acquires Bisnode for $818 mln Eaton Vance (EV): Morgan Stanley (MS) will acquire Eaton Vance or an equity value of approximately $7 billion Honeywell (HON) acquires privately held Rocky Research Syndicate: Gladstone Land (LAND) files for share common stock offering, no amount given GlycoMimetics (GLYC) files for $100 mln common stock offering NanoString Technologies (NSTG) upsizes and prices offering of 5 mln shares of common stock at $40.00 per share nCino (NCNO) prices secondary public offering of 6,706,944 shares of common stock to be sold by certain stockholders at $72.00 per share SpringWorks Therapeutics (SWTX) prices offering of 4,901,960 shares of its common stock at $51.00 per share Volaris Aviation (VLRS) files for $162.7 mln mixed securities shelf offering IPOs: Expected to Price: iHuman (NYSE: IH): The leading online childhood edutainment provider in China is expected to price its 7.0 M share IPO between $11-$13. Kronos Bio (Nasdaq: KRON): The clinical-stage biopharmaceutical company developing novel cancer therapeutics is expected to price its 10.3 M share IPO between $16-$18. Shattuck Labs (Nasdaq: STTK): The clinical-stage biotechnology company developing dual-sided fusion proteins as a new class of biologic medicine is expected to price its 10.0 M share IPO between $14-$16. Spruce Biosciences (Nasdaq: STTK): The late-stage biopharmaceutical company developing and commercializing novel therapies for rare endocrine disorders is expected to price its 5.0 M share IPO between $14-$16. Priced to Trade: AZIYO Biologics (Nasdaq: AZYO): The commercial-stage regenerative medicine company priced its 2.9 M share IPO at $17, the mid-point of the $16-$18 expected price range. fuboTV (NYSE: FUBO): The sports-focused, live TV streaming platform priced its upsized 18.3 M share IPO at $10, the mid-point of the $9-$11 expected price range. The IPO was originally expected to consist of 15.0 M shares. Gapping Up/Down Gapping up: ATEC +26%, CDNA +13.9%, UMC +7.1%, COTY +6.3%, IBM +5.4%, FUBO +5.3%, REGN +4.9%, SAR +4.4%, BV +4.3%, HELE +4.1%, AUY +3.1%, GWRE +2.6%, TSM +1.8%, GILD +1.6%, TBIO +1% Gapping down: RGP -6.4%, LAND -5.2%, GLYC -4.9%, ASX -2.6%, NCNO -2.2%, NSTG -2%, ANGI -1.9% Analyst Research (see Upgrades/Downgrades calendarfor full list): Upgrades: Arista Networks (ANET) upgraded to Overweight from Neutral at JP Morgan; tgt $275 Assoc Banc-Corp (ASB) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $18 Ball Corp (BLL) upgraded to Outperform from Market Perform at BMO Capital Markets; tgt raised to $107 Century Communities (CCS) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $64 Dana Inc (DAN) upgraded to Outperform from Sector Perform at RBC Capital Mkts; tgt raised to $18 Martin Marietta (MLM) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $311 MDC Holdings (MDC) upgraded to Overweight from Neutral at JP Morgan; tgt raised to $67 Tesla (TSLA) upgraded to Buy from Neutral at New Street; tgt $578 Triumph Bancorp (TBK) upgraded to Equal Weight from Underweight at Wells Fargo; tgt raised to $27.50 Umpqua Holdings (UMPQ) upgraded to Overweight from Equal Weight at Wells Fargo; tgt raised to $14 Vulcan Materials (VMC) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $183 Downgrades: Brookfield Renewable Partners (BEP) downgraded to Equal Weight from Overweight at Wells Fargo; tgt raised to $53 Brookfield Renewable Corp. (BEPC) downgraded to Equal Weight from Overweight at Wells Fargo; tgt raised to $60 Citigroup (C) downgraded to Neutral from Overweight at JP Morgan; tgt $57.50 Glaukos (GKOS) downgraded to Underweight from Neutral at JP Morgan; tgt $50 Integra (IART) downgraded to Underweight from Neutral at JP Morgan; tgt lowered to $50 Jones Lang LaSalle (JLL) downgraded to Mkt Perform from Outperform at Keefe Bruyette; tgt $125 Meritage (MTH) downgraded to Neutral from Overweight at JP Morgan; tgt $137 Natl Instruments (NATI) downgraded to Underweight from Neutral at JP Morgan; tgt $37 NeoPhotonics (NPTN) downgraded to Neutral from Overweight at JP Morgan; tgt $7 TransMedics Group (TMDX) downgraded to Neutral from Overweight at JP Morgan; tgt $15 Vale S.A. (VALE) downgraded to Market Perform from Outperform at Itau BBA Others: Accelerate Diagnostics (AXDX) initiated with a Neutral at BTIG Research Adaptive Biotechnologies (ADPT) resumed with a Buy at BTIG Research; tgt $60 Applied Therapeutics (APLT) initiated with a Buy at Truist; tgt $85 Arcutis Biotherapeutics (ARQT) initiated with a Buy at Truist; tgt $38 Bank of N.T. Butterfield & Son (NTB) resumed with a Buy at Goldman; tgt $29 Cardiff Oncology (CRDF) initiated with an Overweight at Piper Sandler; tgt $25 Cerus (CERS) resumed with a Buy at BTIG Research; tgt $9 DraftKings (DKNG) initiated with a Market Perform at Cowen; tgt $55 Exact Sciences (EXAS) resumed with a Buy at BTIG Research; tgt $140 Exagen (XGN) initiated with a Buy at BTIG Research; tgt $18 FuelCell Energy (FCEL) initiated with an Overweight at JP Morgan Green Brick Partners (GRBK) initiated with a Buy at B. Riley Securities; tgt $21 Immunovant Sciences (IMVT) initiated with a Buy at Stifel; tgt $46 InflaRx (IFRX) initiated with a Buy at H.C. Wainwright; tgt $11 Iteos Therapeutics (ITOS) initiated with an Outperform at Robert W. Baird; tgt $45 Natera (NTRA) initiated with a Buy at BTIG Research; tgt $90 Personalis (PSNL) initiated with a Buy at BTIG Research; tgt $35 Pinnacle West (PNW) initiated with a Neutral at Mizuho Signature Bank (SBNY) initiated with an Overweight at Piper Sandler; tgt $120 Snowflake (SNOW) initiated with an Underweight at Atlantic Equities; tgt $214 T2 Biosystems (TTOO) initiated with a Buy at BTIG Research; tgt $2.50 Utz Brands (UTZ) initiated with an Outperform at Oppenheimer; tgt $21 Upcoming Events: Econ Data: 08:30 ET: Initial Claims for October 3 (Briefing.com Consensus 830K; Prior 837K) 08:30 ET: Continuing Claims for September 26 (Briefing.com Consensus NA; Prior 11.767M) 10:30 ET: EIA Natural Gas Inventories for October 3 (Briefing.com Consensus NA; Prior +76 bcf) Asia & Europe detail: Asia: Nikkei +1.0%, Hang Seng -0.2%, Shanghai CLOSED Equity indices in the Asia-Pacific region ended Thursday on a mostly higher note while markets in China remained closed before reopening tomorrow. Samsung issued better than expected guidance for Q3 while LG said it expects its best Q3 in its history. Taiwan Semiconductor reported a 25% yr/yr jump in September revenue. Japan will reportedly lower its travel advisory levels for certain countries on November 1. Reserve Bank of New Zealand Assistant Governor, Christian Hawkesby, said that the central bank is actively working on funding for its lending program and on negative rates. In economic data: Japan's August Current Account surplus JPY1.65 trln (last surplus of JPY960 bln). September Economy Watchers Current Index 49.3 (last 43.9) New Zealand's ANZ October Business Confidence -14.5 (last -28.5) ---Equity Markets--- Japan's Nikkei: +1.0% Hong Kong's Hang Seng: -0.2% China's Shanghai Composite: CLOSED India's Sensex: +0.8% South Korea's Kospi: +0.2% Australia's ASX All Ordinaries: +1.1% ---FX--- USD/JPY: UNCH at 106.02 USD/CNH: UNCH at 6.7308 USD/INR: -0.1% to 73.24 Europe: DAX +0.6%, FTSE +0.5%, CAC +0.5% Major European indices trade in the green. A regional court in Madrid blocked a government order calling for a new partial lockdown in the city and nine nearby towns. Meanwhile, restrictions in the U.K. are expected to be tightened next week. Spain's Economy Minister said that debt issuance in 2020 will be lowered by EUR15 bln to EUR115 bln. Bank of England Governor, Andrew Bailey, said that output in Q3 is expected to be 7-10% below pre-crisis levels. In economic data: Germany's August trade surplus EUR15.70 bln (expected surplus of EUR18.20 bln; last surplus of EUR18.00 bln). August Imports 5.8% m/m (expected 1.4%; last 1.1%) and Exports 2.4% (expected 1.4%; last 4.7%) Swiss September Unemployment Rate 3.3% (expected 3.4%; last 3.4%) ---Equity Markets--- STOXX Europe 600: +0.6% Germany's DAX: +0.6% U.K.'s FTSE 100: +0.5% France's CAC 40: +0.5% Italy's FTSE MIB: +0.6% Spain's IBEX 35: +1.2% ---FX--- EUR/USD: -0.1% to 1.1754 GBP/USD: UNCH at 1.2909 USD/CHF: +0.2% to 0.9180