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22 minutes ago
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Investors see risks for market as Powell walks tightrope at Jackson Hole
By Davide Barbuscia NEW YORK (Reuters) -Investors are bracing for volatility as Federal Reserve Chair Jerome Powell walks a fine line between curbing inflation and supporting the labor market, with thin August trading poised to magnify any market moves from his Jackson Hole speech on Friday. Wall Street largely expects Powell will signal an imminent easing in monetary policy, but concerns that U.S. President Donald Trump's tariffs could reignite price pressures may force him to tread carefully. Meanwhile, Powell faces relentless pressure from the Trump administration to cut interest rates, turning his final address as Fed boss at the Jackson Hole economic symposium into a test of Fed independence. "There is a market tightrope here from a macroeconomic perspective between the inflation data and what's happening in the employment market," said Tony Rodriguez, head of fixed income strategy at Nuveen. "And now you combine that with the political tightrope that's not usually there that he has to navigate. It makes for an incredibly difficult, tricky situation," he said. Adding to the drama, Trump on Wednesday urged Fed Governor Lisa Cook to resign over mortgage allegations raised by one of his political allies, intensifying his effort to gain influence over the U.S. central bank. Cook said she had "no intention of being bullied" out of her post. "This (Jackson Hole) would be a good opportunity for Powell to speak about the importance of independence," said Idanna Appio, portfolio manager at First Eagle Investments, noting that the pressure could eventually lead to a more dovish rate-setting Fed board. A soft July jobs report and hefty downward revisions to earlier job figures fueled bets the U.S. central bank would cut interest rates from the current 4.25%-4.5% range later this year. But a surge in wholesale prices in July dimmed investor hopes for a half-point move at the Fed's next rate-setting meeting in September, leaving markets braced for about two 25 basis point cuts for the rest of the year. So far, consumers have been spared a sharp jump in prices despite Trump's escalating import tariffs, but doubts linger over how much of those duties will filter through to households in the months ahead. "I expect that Powell will signal a change in monetary policy that suggests that we'll resume the rate-cutting cycle on September 17, and markets will welcome that news," said Michael Arone, chief investment strategist at State Street Investment Management. "But I think he'll be reluctant to give too much transparency on the future path of rate cuts, because he knows what he doesn't know," Arone said, referring to the inflationary impact of tariffs. 'EXPECT VOLATILITY' Investors see any pushback from Powell against an imminent shift to monetary policy easing as the biggest risk heading into the Jackson Hole, Wyoming, event, with poor liquidity in summer trading expected to exacerbate the market reaction. "It's next to the last week of August, it's Friday, markets might be a little more susceptible to some volatility as a result of a little bit less liquidity ... (this) might lead to something of an unexpected move," said Rodriguez at Nuveen. Powell's speech comes amid market concerns of stagflation, a dreaded mix of sluggish growth and sticky inflation that could limit the Fed's ability to ride to Wall Street's rescue, just as a tech stock selloff this week highlighted long-standing worries over steep stock valuations. "Stagflation is a risk," said James Ragan, co-chief investment officer and director of investment management research at D.A. Davidson. "If Powell pulls back on the expectation for a rate cut in September, I think stocks would fall in that scenario and you obviously would see probably bond yields rise at least at the short end," he said. To be sure, Powell's address may ultimately be underwhelming for markets. Hot producer prices data in July removed the possibility that the Fed could deliver a jumbo-sized cut in September, limiting the scope for resistance from an inflation-focused Powell against those expectations. At the Jackson Hole conference in 2022, Powell echoed late Fed chair Paul Volcker with a hardline vow to crush inflation. This time, with inflation about 1 percentage point above the Fed's 2% target and a softening but still healthy job market, a subtler balance could be in the cards. Still, a balanced message could be perceived as hawkish, sparking price fluctuations in stocks and bonds over the next few weeks, said Shannon Saccocia, chief investment officer for wealth management at Neuberger Berman. "Our advice to clients has been to expect volatility," she said.
Yahoo
22 minutes ago
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Achieve Life Sciences Inches Closer To FDA Nod For First New Quit-Smoking Drug In 20 Years
Achieve Life Sciences Inc. (NASDAQ:ACHV) is moving closer to a pivotal moment as it seeks FDA approval for cytisinicline, a potential first new smoking cessation therapy in nearly two decades, positioning the company for a high-stakes commercial launch in 2026. In a vote of confidence for the late-stage specialty pharmaceutical company's pipeline with a focus on smoking health and nicotine dependence, HC Wainwright has initiated coverage on Achieve Life Sciences with a Buy rating and a $12 price forecast. In June, Achieve Life Sciences submitted a New Drug Application (NDA) to the U.S. Food and Drug Administration (FDA) for cytisinicline for nicotine dependence for smoking cessation in cytisinicline NDA is supported by a combination of efficacy and well-tolerated safety results from two Phase 3 trials, ORCA-2 and ORCA-3, which evaluated cytisinicline for smoking cessation. In both studies, cytisinicline administered for 6 or 12 weeks, alongside standard behavioral support, demonstrated significantly greater abstinence rates by the end of treatment and long-term abstinence through week 24 compared to placebo. The company has also included safety data on over 300 participants with at least six months of cumulative cytisinicline exposure. In June, the company raised around $45 million to fund continued advancement of cytisinicline through potential FDA marketing approval of cytisinicline and for working capital and general corporate purposes. The company expects the funding to provide runway into the second half of 2026. Analyst Brandon Folkes says, 'With the New Drug Application (NDA) now submitted, and a potential FDA approval and commercial launch in 2026, we view the next 12 to 18 months as a period of potential significant value inflection for ACHV stock.' Achieve Life Sciences' shares undervalue the commercial potential of cytisinicline, given the shortcomings of current therapies, rising smoking and vaping rates, and its superior efficacy and tolerability versus Pfizer Inc.'s (NYSE:PFE) Chantix (varenicline) and generics. Folkes sees tolerability as a key edge for cytisinicline, noting varenicline's side effects have limited its use. He argues that Achieve Life Sciences' valuation fails to capture the strong NDA data or the sizable market opportunity, where peak sales could far exceed the company's current worth. According to an investor note from Folkes, a rational pricing strategy for cytisinicline, potentially ranging from $500 to $3,000 per month, could be justified by the significant health economic costs associated with smoking. Cytisinicline could become the first FDA-approved smoking cessation therapy in nearly 20 years, with a U.S. launch expected in 2026. Its differentiated profile, flexible dosing, and broad adoption potential position it well in a $13 billion global market. Before its withdrawal, Pfizer's Chantix generated nearly $1 billion annually in U.S. sales, highlighting the sizable opportunity relative to Achieve's current valuation. Price Action: ACHV stock is trading higher by 14.92% to $2.97 at last check Thursday. Image via Shutterstock Latest Ratings for ACHV Date Firm Action From To Oct 2021 Alliance Global Partners Initiates Coverage On Buy Jun 2021 Oppenheimer Initiates Coverage On Outperform Sep 2020 Lake Street Initiates Coverage On Buy View More Analyst Ratings for ACHV View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Achieve Life Sciences Inches Closer To FDA Nod For First New Quit-Smoking Drug In 20 Years originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
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22 minutes ago
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Walmart (WMT) Soars with US$7 Billion Q2 Net Income and US$1.6 Billion Buyback
Following a less-than-expected earnings announcement on August 21, 2025, Walmart experienced a 4% decline in its stock price, juxtaposed with a 7.21% overall increase in the last month. This uptick could reflect positive sentiment from its comprehensive buyback activities and robust partnership announcements, including collaborations with AN Supps and Pure Protein. While broader market conditions showed volatility, with the S&P 500 seeing a streak of declines and awaiting Fed Chair Powell's speech, Walmart's engaged strategy with new product offerings and solid earnings growth might have contributed to its overall positive month, countering broader market trends. We've identified 2 warning signs with Walmart and understanding the impact should be part of your investment process. Rare earth metals are an input to most high-tech devices, military and defence systems and electric vehicles. The global race is on to secure supply of these critical minerals. Beat the pack to uncover the 27 best rare earth metal stocks of the very few that mine this essential strategic resource. The recent decline of 4% in Walmart's share price following its earnings announcement contrasts the company's 7.21% monthly increase, showing how immediate-term results can occasionally diverge from broader investor sentiment. This pricing shift comes amidst Walmart's expansive buyback strategies and new partnerships, which may bolster long-term faith even if short-term market reactions are mixed. Over the past five years, Walmart achieved a total shareholder return, including dividends, of 152.39%. In comparison, Walmart outperformed the US Consumer Retailing industry and the broader US Market over the past year, underscoring its resilience in a fluctuating market environment. The news concerning Walmart's strategic advancements and partnerships could influence future revenue and earnings positively. Investments in supply chain automation and ventures in e-commerce are poised to enhance operational efficiencies, striving for sustained growth. Analysts currently project Walmart's revenue to increase to $775.20 billion by 2028, with earnings anticipated to reach $25.60 billion. Against the current share price of US$102.57 and a consensus price target of US$110.95, the stock's 8.17% mark up to its price target suggests the potential for an upward adjustment, based on the fulfillment of forecasted growth metrics. However, this projected growth relies on successful execution against identified risks, including cost management and international expansion efficacy. Assess Walmart's future earnings estimates with our detailed growth reports. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include WMT. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
