What’s going on here?

Lululemon reported bouncing results this week, as the sportswear brand showed just how far it can stretch.

What does this mean?

Brunch in jeans and a nice top is fine, but brunch in comfortable leggings that guarantee you compliments couldn’t be better. No surprise, then, that Lululemon – maker of workout and athleisure garms that you’ll spot as often in coffee shops as you would gyms – is as popular as ever. The lycra-heavy firm won over more market share in the US after donning stores with its profitable new performance sports lines. Mind you, sleek sportswear was flying off the shelves outside North America too: international sales were up 52% last quarter from the same last year, spurred on by China’s reopening and store openings in spots like Thailand. Lululemon skipped away having beat expectations for both profit and revenue, and upped its full-year outlook too.

Why should I care?

For markets: Stop trying to make Gap happen.

Lululemon’s fellow trendsetters Abercrombie & Fitch and Urban Outfitters’ sales were in vogue last week too, growing as their affluent fashionista fans stayed loyal and kept spending. Meanwhile, the likes of Gap and Macy’s are being left on the shelves, as the brands’ more money-conscious target customers watch their budgets. That’s probably why the first three have outperformed the S&P 500 this year, while the others lag behind.

The bigger picture: Sports bras for everyone.

The sportswear supreme has ambitious plans, aspiring to double its annual revenue from 2021 by 2026. Lululemon will be leaning heavy on those international markets: they only make up a fifth of the firm’s sales right now, but they’re brimming with potential. That’s why Lululemon plans to open new stores in Asia’s fastest-growing areas, along with focusing on its men’s and online segments. Get your jockstrap pre-orders in, boys.

What’s going on here?

Data out on Friday showed the US stuck to its tune and added more jobs than expected last month – but, record scratch, the country might be headed down a better track this time.

What does this mean?

The US adding a more-than-expected 187,000 jobs in August sounds less than ideal for the anti-inflation attack. But look a little closer, and the labor market in the world’s biggest economy might actually be cooling off. That was the third month in a row that there were fewer than 200,000 jobs added, while data out this week showed that the number of job openings fell to the lowest in over two years. Add in that the unemployment rate unexpectedly jumped up to 3.8%, and the hot-to-touch market is looking a little more tepid.

Why should I care?

Zooming in: Retirement was nice while it lasted.

Once-free folk have been crawling back to the workforce to earn a few extra bucks. And with more potential workers to choose from, employers may not have to inflate their salaries to compete with each other for job seekers’ attention. That’s just what the Federal Reserve (the Fed) wants to hear, since rising wages tend to stoke inflation. The central bank, then, might not have to slam the big, red “rate hike” button for now. Markets are certainly hoping so: they’re betting the Fed’s next two meetings will be hike-free.

The bigger picture: Take your pick: recessions or spiders.

The jobs market has a lot of sway on the direction of the economy. This kind of data, then, could mean the US is one step closer to achieving the once-unlikely but coveted “soft-landing” scenario, managing to tame inflation without a full-blown recession. In fact, some economists are expecting the economy to keep up its sturdy growth this quarter, making fears of even a shallow recession look like irrational phobias.