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Stocks Hit Records on China Trade Hope & Buy this Biotech Stock - Free Lunch

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On today’s episode of Free Lunch here at Zacks, Associate Stock Strategist Ben Rains dives into the latest U.S-China trade war news that includes a positive tweet from President Trump that helped lift stocks to new highs. We then take a look at Lululemon’s earnings results, before we close with why Vertex Pharmaceuticals (VRTX - Free Report) is a Zacks Rank #1 (Strong Buy) stock right now.

The Dow, S&P 500, and Nasdaq all surged to new intraday highs Thursday after President Trump tweeted that the U.S. and China are closing in on a phase one trade deal. The deal would reportedly see Beijing commit to purchase large amounts of U.S. agricultural products, provide stronger U.S. intellectual-property protection, and more.

Meanwhile, the U.S. might cut existing tariff rates by up to 50% on some Chinese goods and cancel new tariffs set to start Sunday. These tariffs would impact more consumer-facing goods such as tech products and apparel.

On top of that, the Fed will hold interest rates steady and House Democrats have finally supported the new USMCA trade deal, which would help boost the U.S. economy heading into 2020.

In company news, Lululemon (LULU - Free Report) stock fell despite topping quarterly estimates Wednesday. But the firm remains confident in its ability to expand long term as it tries to challenge the likes of Nike (NKE - Free Report) and Adidas (ADDYY - Free Report) .

Looking ahead, Oracle (ORCL - Free Report) , Broadcom (AVGO - Free Report) , Adobe (ADBE - Free Report) , and Costco (COST - Free Report) all report their quarterly results after the closing bell Thursday.

We then close the episode with why Vertex is a pharmaceuticals/biotech stock that investors might want to buy.

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