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What to watch today: Wall Street's rebound, opioid ruling against J&J, and China's response to Trump

BY THE NUMBERS

U.S. stock futures were pointing to a higher Tuesday open on Wall Street. The Dow, S&P 500, and Nasdaq rebounded with strong gains Monday. But those gains were less than half the losses posted last Friday. Both the Dow and S&P 500 were down about 3.5% for August, and now seem all but certain to post their second losing month of the year. The same is true for the Nasdaq, which was down nearly 4% this month. (CNBC)

* Wall Street sees elevated recession risk, market woes after US and China stoke trade fears (CNBC)
* China's central bank could be trying to shore up the yuan (CNBC)

On today's economic calendar, the S&P/Case-Shiller Index is out at 9 a.m. ET. The Conference Board issues its August consumer confidence index at 10 a.m. ET. Meanwhile, J.M. Smucker (SJM) is one of the few companies scheduled to issue quarterly earnings this morning. Autodesk (ADSK) and Hewlett Packard Enterprise (HPE) are out with their numbers after today's closing bell. (CNBC)

Starbucks CEO sees no signs of a looming recession: 'We're firing on all cylinders' (CNBC)

IN THE NEWS TODAY

China's foreign ministry reiterated on Tuesday that it had not heard of any recent telephone call between the United States and China on trade, and said it hopes Washington can stop its wrong actions and create conditions for talks. President Donald Trump on Monday predicted a trade deal with China. (Reuters)

* Here are the crazy scenes from Costco's opening day in China (Quartz)

An Oklahoma judge ruled against Johnson & Johnson (JNJ) in the state's opioid case, forcing the company to pay $572 million. It was the first ruling in the U.S. holding a drugmaker accountable for helping fuel the epidemic. J&J said the decision in the case is "flawed." (CNBC)

* Shares of pharma companies soar after Johnson & Johnson sees smaller-than-expected opioid fine (CNBC)

Democrats are considering the possibility of passing a short-term funding bill to keep the government running after Sept. 30. During a caucus conference call on Friday, Majority Leader Steny Hoyer raised the specter of a stop-gap measure that lasts through Nov. 22 in order to prevent a government shutdown, CNBC reported.

Nineteen states and the District of Columbia sued over the Trump administration's effort to alter a federal agreement that limits how long immigrant children can be kept in detention. The Homeland Security Department said last week it would create new regulations on how migrant children are treated. (AP)

* Trump administration ends protection for migrant medical care (AP)

Rep. Joseph Kennedy III has formed an exploratory committee for a possible U.S. Senate run against Massachusetts incumbent Sen. Ed Markey. However, aides insist Kennedy has not made a decision about entering the race against his fellow Democrat. (CNBC)

* U.S. officials fear ransomware attack against 2020 election (Reuters)
* New 2020 polls show three-way tie among Sanders, Warren and Biden (NY Times)

Violence in Hong Kong's pro-democracy protests is becoming more serious but the government there is confident it can handle the crisis itself, embattled leader Carrie Lam said today. Demonstrations escalated Sunday, when police fired water cannon and volleys of tear gas in running battles with protesters who threw bricks and petrol bombs. (Reuters)

The U.S. and France have struck a deal to settle their differences over a French digital tax on big tech companies. Under the deal, France will eliminate its 3% tax once a new international agreement on digital taxation is reached. The companies that pay France's tax will be reimbursed once the international agreement is in place. (CNBC)

The G-7 nations pledged millions of dollars to help fight raging wildfires in the Amazon and protect its rainforest, even as Brazil's president accused rich countries of treating the region like a "colony." The pledges included $20 million from the group, as well as a separate $12 million from Britain and $11 million from Canada. (AP)

Kurt Zumwalt, Amazon's (AMZN) global treasurer, has departed after 15 years of helping manage the company's cash and overseeing investments and debt financing. His departure comes as Amazon heads into another heavy investment cycle, while facing growing concerns around the trade war and regulatory scrutiny. (CNBC)

STOCKS TO WATCH

AstraZeneca (AZN) was granted fast track approval status by the Food and Drug Administration, as it attempts to get the popular diabetes drug Farxiga approved for use in preventing heart and kidney failure for patients with chronic kidney disease.

Taiwan Semiconductor (TSM) was sued by contract chipmaker GlobalFoundries for patent infringement. GlobalFoundries is seeking to stop Taiwan Semi's customers, which include Apple (AAPL), from importing affected products to the U.S. and Germany.

Papa John's (PZZA) will name Arby's President Rob Lynch as its new chief executive officer, according to a Bloomberg report. The change could be announced as early as today.

Facebook (FB) is developing a new messaging app called "Threads," according to technology website The Verge. The app is designed to promote constant contact between users and their closest friends. It's seen as a threat to Snap's (SNAP) SnapChat.

WATERCOOLER

With a little more than two months before the debut of its streaming service, Disney (DIS) dazzled fans with celebrity guests and trailers over the weekend at its D23 Expo. The company showcased a number of programs it had previously announced as well as a number of shriek-inducing reveals like three more Marvel shows and an Obi-Wan Kenobi show. (CNBC)

Eddie Murphy will be returning to a place that helped launch his career: "Saturday Night Live." The comedian will be the host of the sketch comedy show on Dec. 21, marking the former cast member's first hosting appearance since 1984. (AP)