Jun 30, 2020
Lululemon buys at-home exercise startup Mirror for $500 million
This news has been received from: CBS News
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Athletic apparel maker Lululemon Athletica said Monday it's acquiring at-home exercise startup Mirror for $500 million as Americans remain leery about returning to public gyms amid the coronavirus pandemic.
The deal is part of Lululemon's plan to expand beyond just selling yoga and other exercise apparel for both men and women, and suggests that the Canadian workout-wear company is betting we won't return to gyms anytime soon, as coronavirus cases surge across the United States.
"The acquisition of Mirror is an exciting opportunity to build upon that vision, enhance our digital and interactive capabilities, and deepen our roots in the sweat life," Lululemon CEO Calvin McDonald said in a statement.Get Breaking News Delivered to Your Inbox
The move comes as Americans have been forced by gym closures to work out at home during the pandemic, and even substitute their young children for kettlebells. Lululemon on its website features a section that guides visitors through at-home workouts. While some gyms have reopened with new safety protocols in place, many fitness enthusiasts remain hesitant about returning to shared facilities over coronavirus concerns.
Mirror, which launched in 2018, sells a $1,500 interactive mirror that streams live and on-demand workout classes. It also offers one-on-one personal training services.Sweating at home with Peloton
The deal builds on a partnership between the two companies that began in mid-2019, when Lululemon made an initial investment in Mirror.Trending News
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It also marks Lululemon's first acquisition. Once the deal closes, Mirror will operate as a standalone company within Lululemon, which is based in Vancouver, British Columbia.
Brynn Putnam will continue as Mirror's CEO, reporting to McDonald.
News Source: CBS News
Charts suggest the S&P 500 climb will stall out at the end of July, Jim Cramer warns
VIDEO2:2602:26Cramer: Legendary trader Larry Williams sees the S&P 500 peaking near July 27Mad Money with Jim Cramer
CNBC's Jim Cramer warned investors Tuesday that the market uptrend could be running out of fuel near the end of the month.
The S&P 500 has gained 2.5% of value from the start of July, but there are strong odds that a reversal in the index's trajectory is looming over the backend days, based on analysis from renowned trading expert Larry Williams.
"The charts, as interpreted by the legendary Larry Williams, suggest the S&P could climb another 4% or 5% over the next two weeks, but come July 28, he expects the market to start rolling over," Cramer said on "Mad Money." "Given that the expanded unemployment insurance benefits from Washington expire at the end of the month, well, I wouldn't be surprised" if he's right.
With Covid-19 cases steadily growing across the U.S. and states pulling the plug on their plans to reopen their economies, the future is uncertain. Under these conditions, Cramer likes to go off the charts to get a more empirical read on the market void of emotions and knee-jerk reactions to daily gyrations in stock prices.
Perusing the S&P 500 chart below, Cramer noted that Williams uses the red line to forecast a break in market trajectory. Based on history, Williams concludes that whenever the red line changes direction the market is likely to follow suit.
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Williams expects the market could peak near its old highs around July 27 but presumes those levels will be fleeting, Cramer said. The S&P 500 is within 6% of its all-time closing high of 3,386.15 in February, prior to the coronavirus-induced meltdown that sent the stock market from the longest bull run in recorded history into bear territory within weeks.
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Cramer also explained that the advance/decline line in the above chart is another warning sign for Williams. The advance/decline line, which compares the number of stocks going up versus down, is a leading indicator that often peaks weeks before a market sell-off.
The line last reached a high in early June, meaning the broad index of 500 stocks could be due for a pullback in the near future, the host said.
"Williams points out that the advance/decline line tends to peak BEFORE the market sells off. And when the advance/decline line ... breaks out, the market tends to follow," Cramer said.
"Again, you can see that the S&P lags the advance/decline line, which went to a new high in early June. If history is any guide, Williams, therefore, expects the S&P 500 to make a new high about a month and a half later."
The Nasdaq Composite can also be viewed as a leading indicator for the S&P 500 here, according to Williams. The Nasdaq, which is full of tech components, has spent weeks making new highs as society leaned on technology even more during the coronavirus lockdown and continues to increasingly rely on technology in a remote-work world. The respected trader thinks the Nasdaq could foreshadow what's to come in both the 30-stock Dow and the S&P 500, Cramer said.
"How hard will stocks get hit if Williams is right that the market will peak in a couple weeks? He says it's probably too soon to tell," the host said, "but he does suspect the rollover will hurt, because too many people" are too long on equities.VIDEO9:2909:29Jim Cramer: Charts suggest the S&P 500 climb will stall out at the end of JulyMad Money with Jim Cramer
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