Thursday’s Headlines: U.S. and China Sign Trade Deal
1. The U.S. and China have signed an agreement to pause the trade war that has weighed on the global economy for nearly two years. The deal leaves in place tariffs on hundreds of billions of dollars of Chinese imports, but offers some relief in the placement of stricter intellectual property rules, the stability of Chinese currency, and a pledge by China to purchase at least $200 billion in U.S. goods over 2 years. “Together we are righting the wrongs of the past and delivering a future of economic justice and security for American workers, farmers, and families,” stated President Trump following the signing. For the full report, read here.
2. SmileDirectClub’s great week is having an adverse effect on rivals Align Technology, as the latter fell nearly 5% on Wednesday, compared to the former’s 17% rise. SmileDirectClub’s stock initially rose nearly 15% on Monday after it announced that it will start selling its teeth-straightening products to dentists and orthodontists, sending Align’s stock falling. The company’s exclusive partnership with Align Technology expired at the end of 2019, freeing it up to market its clear aligners directly. For the full report, read here.
3. Lululemon Athletica has bucked the weak trend in the retail sector by reporting strong sales from the holiday quarter and raising its guidance. The yoga-pants producer said it now expects revenue to range from $1.37 billion to $1.38 billion and earnings per share to range from $2.22 to $2.25, compared to initial guidance of $1.315 billion to $1.330 billion and EPS of $2.10 to $2.13. Lululemon stock is up 4.5% for the week to date and has soared 73% over the last year to outperform other retailers during a difficult time for the sector. Get a complete report here.