Daily morning uptodates.

The S&P 500 futures trade two points, or 0.1%, below fair value while investors review another batch of corporate earnings. The results haven't moved the market, which appears to be consolidating its solid monthly gains. Nevertheless, Dow components UnitedHealth (UNH 334.00, +2.58, +0.8%) and Goldman Sachs (GS 217.10, +6.29, +3.1%) are moving higher in response to their better-than-expected quarterly results. Bank of America (BAC 24.40, -0.55, -2.2%) and Wells Fargo (WFC 34.33, -0.41, -1.7%), on the other hand, are trading lower following mixed reports. Separately, temporary pauses of COVID-19 vaccine/antibody trials and an impasse on fiscal stimulus haven't had a meaningful impact on the market, presumably because it believes these are short-term events that will eventually be resolved. On the data front, investors will receive the Producer Price Index for September (Briefing.com consensus 0.1%) at 8:30 a.m. ET, followed by the Fed Beige Book for September and the Treasury Budget for September at 2:00 p.m. ET. The weekly MBA Mortgage Applications Index decreased 0.7% following a 4.6% increase in the prior week. U.S. Treasuries trade slightly higher to extend yesterday's advance. The 2-yr yield is down one basis point to 0.14%, and the 10-yr yield is down two basis points to 0.71%. The U.S. Dollar Index is down 0.1% to 93.48. WTI crude futures are down 0.4% to $40.02/bbl. In U.S. Corporate news: UnitedHealth (UNH 334.00, +2.58): +0.8% after beating top and bottom-line expectations and raising its FY20 EPS guidance. Goldman Sachs (GS 217.10, +6.29): +3.1% after beating top and bottom-line estimates. Bank of America (BAC 24.40, -0.55): -2.2% after missing revenue estimates but beating earnings estimates. Wells Fargo (WFC 34.33, -0.41): -1.7% after missing earnings estimates but beating revenue estimates. U.S. Bancorp (USB 39.10, +0.68): +1.8% after beating top and bottom-line estimates. Concho Resources (CXO 48.25, +4.11): +9.3% after Bloomberg reported the company is in talks to be acquired by ConocoPhillips (COP 34.90, +0.02, +0.1%). Reviewing overnight developments: Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. Japan's Nikkei: +0.1%, Hong Kong's Hang Seng: +0.1%, China's Shanghai Composite: -0.6%, India's Sensex: +0.4%, South Korea's Kospi: -0.9%, Australia's ASX All Ordinaries: -0.2%. In economic data: China's September new loans CNY1.90 trln (expected CNY1.70 trln; last CNY1.28 trln) and total social financing CNY3.48 trln (last CNY3.58 trln) Japan's August Industrial Production 1.0% m/m (expected 1.7%; last 8.7%) and August Capacity Utilization 2.9% m/m (last 9.6%) India's September WPI Inflation 1.32% yr/yr (expected 0.78%; last 0.16%) Singapore's Q3 GDP 35.4% qtr/qtr (expected 35.3%; last -13.2%); -7.0% yr/yr (expected -6.8%; last -13.3%) Australia's October Westpac Consumer Sentiment 11.6% (last 18.0%) In news: China's Ministry of Finance sold $6 bln in 3-yr, 5-yr, 10-yr, and 30-yr dollar denominated debt to good demand. Japanese officials may reportedly lower the country's global travel warning soon. Australia's Treasurer said that Australia's relationship with China remains mutually beneficial despite recent difficulties. The Bank of Korea left its repurchase rate at 0.50%, as expected. Major European indices trade near their flat lines. STOXX Europe 600: -0.1%, Germany's DAX: -0.2%, U.K.'s FTSE 100: -0.2%, France's CAC 40: -0.2%, Italy's FTSE MIB: +0.2%, Spain's IBEX 35: +0.2%. In economic data: Eurozone's August Industrial Production 0.7% m/m (expected 0.8%; last 5.0%) Spain's September CPI 0.2% m/m, as expected (last 0.0%); -0.4% yr/yr, as expected (last -0.5%) In news: Officials from the U.K. and the European Union are still struggling to bridge their differences with regards to a post-Brexit trade agreement. Germany's Leading Economic Institutes now expect Germany's GDP to contract 5.4% in 2020 (from -4.2%) while the 2021 growth forecast was lowered to 4.7% from 5.8%. Spain's Economy Minister said that discussions about the EU recovery fund are ongoing. U.S equity futures: S&P 500 Futures -3 @ 3501 DJIA Futures +11 @ 28596 Nasdaq Futures +22 @ 12117 Overseas: Europe: DAX -0.2%, FTSE -0.2%, CAC -0.2% Asia: Nikkei +0.1%, Hang Seng +0.1%, Shanghai -0.6% Commodities: Crude Oil -0.18 @ 40.02 Nat Gas -0.169 @ 2.686 Gold +8.55 @ 1903.15 Silver +0.171 @ 24.300 Copper +0.0077 @ 3.0522 U.S. Summary: Earnings/Guidance (Full Earnings Calendar): Alaska Air (ALK) provides operational update; expects October cash burn of $125 mln Asbury Automotive (ABG) reports prelim Q3 results with same store gross profit to be up between 6% and 7% ASML (ASML) beats by 0.29, beats on revs; reaffirms Q4 revs guidance AXIS Capital (AXS) announces estimated preliminary net loss range of $225-255 mln, pre-tax, for Q3 Goldman Sachs (GS) beats by $4.18, beats on revs James Hardie (JHX) increases FY21 adjusted NOPAT guidance Medtronic (MDT) provides long term financial targets at investor day PNC (PNC) beats by $1.28, beats on revs UnitedHealth (UNH) beats by $0.43, beats on revs; raises FY20 EPS guidance U.S. Bancorp (USB) beats by $0.08, beats on revs General News: Deadlock in stimulus talks makes it very unlikely that anything will get passed before the election. House Speaker Nancy Pelosi (D-CA) is frustrated with other Democrats in the House that are pushing for a deal, according to Bloomberg Joe Biden will hold an ABC town hall tomorrow at 8pm ET and President Trump will hold a town hall on NBC at the same time, according to the New York Times The Trump administration embraces a scientific declaration that supports herd immunity and is against further coronavirus lockdowns, according to the New York Times US Supreme Court allows Trump Admin to shut down census count early, according to multiple news sources San Francisco apartment rents fall 31% in September as people flee urban areas, according to Bloomberg Universty of Florida suspends college football team activities due to an increase in positive COVID tests among players this week AMC (AMC) could run out of cash by year end, according to Bloomberg Bank of America (BAC) beats by $0.01, misses on revs Bayer AG (BAYRY) reports combination of copanlisib and rituximab significantly prolonged progression-free survival of patients Bed Bath & Beyond (BBBY) enters into agreements to sell certain non-core assets; expects transactions to unlock approx. $250 mln in aggregate Biohaven Pharmaceutical (BHVN): FDA has filed and accepted for review its recently submitted sNDA for NURTEC ODT (rimegepant) for the preventive treatment of migraine; PDUFA set for 2Q21 Contura Energy (CTRA) issues statement in response to letter from MG Capital Management Cyclerion (CYCN) announces top-line results from its STRONG-SCD study of olinciguat, an investigational, orally-administered, once daily, vascular sGC stimulator for the potential treatment of sickle cell disease Dave & Buster's (PLAY) provides an update on the status of store re-openings Diamondback Energy (FANG) provides operational update for Q3 Dollar General (DG) to open new chain targeting wealthy suburban shoppers, according to CNN DuPont (DD): Attorney General Josh Stein confirmed yesterday legal action against DuPont and Chemours over PFAS pollution Eli Lilly (LLY) ticks lower as US drug inspectors uncovered serious quality control problems at plant ramping up COVID-19 drugs, according to Reuters Fortuna Silver Mines (FSM) reports Q3 silver production increased 10% yr/yr GameStop (GME): Senvest Mgmt discloses 5.54% stake GeoPark (GPRK) reports Q3 consolidated oil and gas production of 38,845 boepd, up 5% compared to 2Q2020 Hanover Insurance (THG) expects Q3 catastrophe losses to slightly exceed expectations Investors Real Estate Trust (IRET) provides September operating update JFrog (FROG) announces general availability of a free subscription of its hybrid and multi-cloud DevOps Platform Laureate Education (LAUR) enters into agreement to transfer control of its operations in Honduras Macy's (M) announces Chief Financial Officer transition Merit Medical (MMSI) finalizes settlement with U.S. Department of Justice and U.S. Department of Health and Human Services; agrees to pay $18 million New York Times (NYT) enters into an agreement with MassMutual under which $235 mln in pension obligations will be transferred to MassMutual Ocular Therapeutix (OCUL) comes to an agreement with the FDA to conduct a retrospective study for its ReSure sealant Passage Bio (PASG) Announces Publication of Preclinical Data That Show Single Injection of Optimized AAV Vector into Cerebral Spinal Fluid Corrects Neurological Disease, Supporting Advancement of PBGM01 into Clinic Pilgrim's Pride (PPC) reaches agreement with DOJ; fined $110.5 mln for restraint of competition Preferred Apt. Communities (APTS) provides rent collection update RenaissanceRe (RNR) estimates net negative impact of approx. $325 mln from catastrophe envents in Q3 Simpson Manufacturing (SSD) appoints Michael Olosky as Chief Operating Officer Six Flags (SIX) discloses workforce reduction affecting approx. 240 full-time employees Snap (SNAP) confirms it will be among first to put Apple's new LiDAR lens to use, according to TechCrunch Taiwan Liposome (TLC) reports the first subject has been enrolled in the Phase I clinical trial of TLC19 for treatment of COVID-19 Taysha Gene Therapies (TSHA) received rare pediatric disease designation and orphan drug designation from the FDA for TSHA-102 for the treatment of Rett syndrome Uber (UBER): Uber Eats in Italy under the microscope for alleged migrant worker exploitation, according to TheGuardian Urban Outfitters (URBN) announces management changes, including promotion of Frank Conforti to COO and Co-President V.F. Corp (VFC) announces organizational changes Viper Energy Partners (VNOM) provides operational update for Q3 Wal Mart (WMT) to limit Black Friday indoor shopping capacity to 20% due to coronavirus, according to Bloomberg Walt Disney (DIS): NBA ratings declined for NBA Finals, according to Bloomberg Wynn Resorts (WYNN): Encore at Wynn Las Vegas will alter its operating hours due to low demand per CBS news M&A: Allscripts Healthcare (MDRX) agrees to sell CarePort Health business to WellSky for sale price of $1.35 bln American Water Works (AWK) acquires wastewater assets of the Borough of Kane Authority in McKean County for approximately $17.5 mln ConocoPhillips (COP) in discussions to acquire Concho Resources (CXO), according to Bloomberg Installed Building Products (IBP) acquires insulation installation provider in Pacific Northwest SJW (SJW) to acquire the Clear Water Estates Water System Syndicate: Alphatec (ATEC) prices offering of 11,428,570 shares of its common stock at $8.75 per share Americold Realty Trust (COLD) prices offering of 31.9 mln shares of common stock at $38.00 per share Eton Pharmaceuticals (ETON) files for share common stock offering Lazydays Holdings (LAZY) commences public offering of 4.0 mln shares of common stock Ocular Therapeutix (OCUL) prices offering of 7.18 mln shares of common stock at $9.75 per share Royal Caribbean (RCL) prices offering of 8,333,333 shares of common stock at $60.00 per share and offering of $500 mln of 2.875% Convertible Senior Notes due 2023 Royalty Pharma (RPRX) files for 17,343,037 Class A ordinary share offering by selling shareholders Sapiens Int'l (SPNS) commences public offering of $100.0 mln of its common shares Spirit Realty Capital (SRC) files for mixed securities shelf offering IPOs: Expected to Price: Array Technologies (Nasdaq: ARRY): The manufacturer of ground-mounting systems used in solar energy projects is expected to price its 33.8 M share IPO between $19-$21. Eargo (Nasdaq: EAR): The medical device company dedicated to improving the quality of life of people with hearing loss is expected to price its 6.7 M share IPO between $14-$16. Miniso Group (NYSE: MNSO): The China-based value retailer offering a variety of design-led lifestyle products is expected to price its 30.4 M ADS IPO between $16.50-$18.50. Opthea (Nasdaq: OPT): The clinical stage biopharmaceutical company developing a novel therapy for the treatment of highly prevalent and progressive retinal diseases is expected to price its 9.3 M ADS IPO between at ~$17. Praxis Precision Medicines (Nasdaq: PRAX): The clinical-stage biopharmaceutical company translating genetic insights into the development of therapies for central nervous system disorders is expected to price its 7.4 M share IPO between $16-$18. Spinal Elements (Nasdaq: SPEL): The medical device company developing a portfolio of systems, products and technologies for spine surgery procedure is expected to price its 7.7 M share IPO between $13-$15. Tarsus Pharmaceuticals (Nasdaq: TARS): The late clinical-stage biopharmaceutical company developing therapeutic candidates to address large market opportunities initially in ophthalmic conditions is expected to price its 5.0 M share IPO between $15-$17. Priced to Trade: Codiak BioSciences (Nasdaq: CDAK): The development-stage biopharmaceutical company developing exosome-based therapeutics priced its 5.5 M share IPO at $15, the mid-point of the $14-$16 expected price range. Gapping Up/Down Gapping up: MDRX +42%, TLC +36.7%, THTX +11%, GME +7.8%, PPC +7%, BBBY +6.8%, FROG +1.9%, PASG +1.4%, NVMI +1.4%, ETON +1.2%, VNOM +1.1%, UNH +1.1%, VFC +0.9%, RCL +0.9% Gapping down: SRNE -10.5%, ATEC -9.2%, OCUL -8.9%, LAZY -5.6%, RPRX -3.1%, SPNS -2.1%, ACGL -2%, ASML -1.5%, KDMN -1.1%, SSD -1%, LLY -0.6% Analyst Research (see Upgrades/Downgrades calendarfor full list): Upgrades: Altair Engineering (ALTR) upgraded to Buy from Hold at The Benchmark Company; tgt $53 American Eagle (AEO) upgraded to Hold from Sell at Loop Capital; tgt $15 AnaptysBio (ANAB) upgraded to Buy from Neutral at Guggenheim; tgt $36 AutoZone (AZO) upgraded to Strong Buy from Outperform at Raymond James; tgt raised to $1565 Beacon Roofing Supply (BECN) upgraded to Buy from Hold at Jefferies; tgt raised to $44 NIO (NIO) upgraded to Overweight from Neutral at JP Morgan Shift4 Payments (FOUR) upgraded to Neutral from Sell at Compass Point; tgt $55 Theravance Biopharma (TBPH) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $32 Downgrades: Albemarle (ALB) downgraded to Underperform from Sector Perform at RBC Capital Mkts; tgt lowered to $78 Constellation Brands (STZ) downgraded to Neutral from Overweight at Atlantic Equities; tgt $196 DouYu (DOYU) downgraded to Neutral from Overweight at JP Morgan Invitae (NVTA) downgraded to Neutral from Overweight at JP Morgan Paramount Group (PGRE) downgraded to Underperform from Neutral at BofA Securities; tgt $7.25 Pentair (PNR) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets Southern Copper (SCCO) downgraded to Underperform at BBVA Watford Holdings (WTRE) downgraded to Mkt Perform from Mkt Outperform at JMP Securities Wipro (WIT) downgraded to Hold from Buy at Investec Others: 1Life Healthcare (ONEM) initiated with a Buy at Deutsche Bank; tgt $37 Amcor (AMCR) initiated with a Neutral at Seaport Global Securities AptarGroup (ATR) initiated with a Neutral at Seaport Global Securities Axalta Coating Systems (AXTA) added to Conviction Buy List at Goldman AZEK (AZEK) resumed with a Buy at Stifel; tgt $42 Berry Global (BERY) initiated with a Buy at Seaport Global Securities; tgt $71 Charles Schwab (SCHW) resumed with a Neutral at Credit Suisse; tgt $43 Citrix Systems (CTXS) resumed with a Neutral at UBS; tgt $225 Clarivate (CCC) initiated with an Equal-Weight at Morgan Stanley; tgt $32 Cogent Biosciences (COGT) initiated with a Buy at Ladenburg Thalmann; tgt $4 Crown (CCK) initiated with a Buy at Seaport Global Securities CTO Realty Growth (CTO) initiated with a Buy at Janney; tgt $55 DocuSign (DOCU) initiated with a Buy at UBS; tgt $290 Gores Metropoulos (GMHI) initiated with an Outperform at Northland Capital; tgt $16 Heat Biologics (HTBX) initiated with a Buy at B. Riley Securities; tgt $4 Humanigen (HGEN) initiated with a Buy at H.C. Wainwright; tgt $31 iClick Interactive Asia Group (ICLK) initiated with a Buy at ICBC Research Intellia Therapeutics (NTLA) initiated with an Overweight at Wells Fargo Microsoft (MSFT) resumed with a Buy at UBS; tgt raised to $243 New York Times (NYT) initiated with an Overweight at Morgan Stanley; tgt $55 Niu Technologies (NIU) initiated with an Outperform at CICC O-I Glass (OI) initiated with a Neutral at Seaport Global Securities Oracle (ORCL) resumed with a Neutral at UBS; tgt raised to $62 PNM Resources (PNM) initiated with a Buy at Citigroup; tgt $51 Salesforce (CRM) resumed with a Buy at UBS; tgt $325 Sealed Air (SEE) initiated with a Neutral at Seaport Global Securities ServiceNow (NOW) resumed with a Buy at UBS; tgt raised to $600 Sherwin-Williams (SHW) removed from Conviction Buy List at Goldman Silgan Holdings (SLGN) initiated with a Neutral at Seaport Global Securities Sonoco Products (SON) initiated with a Buy at Seaport Global Securities; tgt $60 Splunk (SPLK) resumed with a Sell at UBS; tgt lowered to $165 Trex (TREX) resumed with a Buy at Stifel; tgt $85 Unity Software (U) initiated with an Outperform at Wedbush; tgt $125 Veeva Systems (VEEV) resumed with a Sell at UBS; tgt $225 VMware (VMW) resumed with a Neutral at UBS; tgt $155 West Pharm (WST) initiated with an Equal-Weight at Stephens; tgt $300 Workday (WDAY) resumed with a Neutral at UBS; tgt raised to $235 Upcoming Events: Econ Data: 07:00 ET: MBA Mortgage Applications Index for October 10 (Briefing.com Consensus NA; Prior 4.6%) 08:30 ET: PPI for September (Briefing.com Consensus 0.1%; Prior 0.3%) 08:30 ET: Core PPI for September (Briefing.com Consensus 0.3%; Prior 0.4%) 14:00 ET: Fed Beige Book for September 14:00 ET: Treasury Budget for September (Briefing.com Consensus NA; Prior -$82.77B) Asia & Europe detail: Asia: Nikkei +0.1%, Hang Seng +0.1%, Shanghai -0.6% Equity indices in the Asia-Pacific region ended the midweek session on a mixed note. China's Ministry of Finance sold $6 bln in 3-yr, 5-yr, 10-yr, and 30-yr dollar denominated debt to good demand. Japanese officials may reportedly lower the country's global travel warning soon. Australia's Treasurer said that Australia's relationship with China remains mutually beneficial despite recent difficulties. The Bank of Korea left its repurchase rate at 0.50%, as expected. In economic data: China's September new loans CNY1.90 trln (expected CNY1.70 trln; last CNY1.28 trln) and total social financing CNY3.48 trln (last CNY3.58 trln) Japan's August Industrial Production 1.0% m/m (expected 1.7%; last 8.7%) and August Capacity Utilization 2.9% m/m (last 9.6%) India's September WPI Inflation 1.32% yr/yr (expected 0.78%; last 0.16%) Singapore's Q3 GDP 35.4% qtr/qtr (expected 35.3%; last -13.2%); -7.0% yr/yr (expected -6.8%; last -13.3%) Australia's October Westpac Consumer Sentiment 11.6% (last 18.0%) ---Equity Markets--- Japan's Nikkei: +0.1% Hong Kong's Hang Seng: +0.1% China's Shanghai Composite: -0.6% India's Sensex: +0.4% South Korea's Kospi: -0.9% Australia's ASX All Ordinaries: -0.2% ---FX--- USD/JPY: -0.1% to 105.39 USD/CNH: -0.2% to 6.7224 USD/INR: -0.3% to 73.25 Europe: DAX -0.2%, FTSE -0.2%, CAC -0.2% Major European indices trade near their flat lines. Officials from the U.K. and the European Union are still struggling to bridge their differences with regards to a post-Brexit trade agreement. Germany's Leading Economic Institutes now expect Germany's GDP to contract 5.4% in 2020 (from -4.2%) while the 2021 growth forecast was lowered to 4.7% from 5.8%. Spain's Economy Minister said that discussions about the EU recovery fund are ongoing. In economic data: Eurozone's August Industrial Production 0.7% m/m (expected 0.8%; last 5.0%) Spain's September CPI 0.2% m/m, as expected (last 0.0%); -0.4% yr/yr, as expected (last -0.5%) ---Equity Markets--- STOXX Europe 600: -0.1% Germany's DAX: -0.2% U.K.'s FTSE 100: -0.2% France's CAC 40: -0.2% Italy's FTSE MIB: +0.2% Spain's IBEX 35: +0.2% ---FX--- EUR/USD: -0.1% to 1.1736 GBP/USD: +0.2% to 1.2956 USD/CHF: UNCH at 0.9144