1. Understood that notification can do this, but notification does not send email on same time everyday, the time interval is 10 hours at the longest.

The default damper period for notifications is Auto (automatic). If a notification is triggered
and the trigger condition continues to exist, the notification action that you configured is not
performed again for 60 minutes. For example, suppose you set a notification so that you are
emailed when a virus infects five computers within one hour. If a virus continues to infect your
computers at or above this rate, Symantec Endpoint Protection emails you every hour. The
emails continue until the rate slows to fewer than five computers per hour

2. If SEPM cannot create such report, which computer status or which column in Symantec Log or report indicate that Symantec service is stop or auto protect is diabled ?

Check this thread

https://www-secure.symantec.com/connect/forums/possibilty-notification