Pfizer's shares fell as the overall market rose after a pullback in recent days related to omicron concerns. Today's decline appears to mainly be just noise. Pfizer could have another positive catalyst on the way with regulatory decisions for its COVID-19 pill.
Full Answer
Is SPCE stock a buy after the stock market crash?
Overall, SPCE stock looks like a good buy after the crash. While the stock probably won't return to its 52-week high anytime soon, it could rise 10 percent from its current price.
Where can I find the PCE and PCE price index?
Personal income, PCEs, and the PCE Price Index reading are released monthly in the Bureau of Economic Analysis (BEA) Personal Income and Outlays report. Personal consumption expenditures support the reporting of the PCE Price Index, which measures price changes in consumer goods and services exchanged in the U.S. economy.
What is the PCEPI and why is it bad?
While it is the preferred metric used by the Fed, there are some distinct problems with the PCEPI. One of the main points is that it takes GDP into account—a figure that is only measured and reported on a quarterly basis. But the PCE is reported every month by the BEA.
Why do we use PCE instead of CPI?
Understanding Personal Consumption Expenditures (PCE) The PCE is often considered predictable, and many analysts prefer to use the CPI because of its ability to determine economic stability using the fixed basket of goods. The PCE index can reveal household buying and shopping habits.
What is the PCE right now?
April 2022 The Trimmed Mean PCE inflation rate over the 12 months ending in April was 3.8 percent. According to the BEA, the overall PCE inflation rate was 6.3 percent on a 12-month basis, and the inflation rate for PCE excluding food and energy was 4.9 percent on a 12-month basis.
Why is PCE price important?
The PCE price index is known for capturing inflation (or deflation) across a wide range of consumer expenses and reflecting changes in consumer behavior.
Why does the Fed use core PCE?
The Fed preferred the PCE for three primary reasons: The PCE formula responds more fluidly to changing consumer preferences. It includes a more comprehensive list of expenditures. Historical data can be revised to reflect new data.
Is PCE chained?
Also, the PCEPI uses a chained index which compares one quarter's price to the previous quarter's instead of choosing a fixed base. This price index method assumes that the consumer has made allowances for changes in relative prices.
Why does the Fed look at PCE and not CPI?
For one, the PCE Price Index has a broader scope than its CPI cousin. The latter looks at households' out-of-pocket costs, while the PCE Price Index examines a broader swath of the cost ecosystem, according to economists.
What was PCE for 2020?
Real PCE decreased 3.8 percent in 2020 for the nation after increasing 2.2 percent in 2019. Across states, the percent change ranged from 2.2 percent in Utah to –7.0 percent in Hawaii, Maryland, and New York; the percent change was –8.9 percent in the District of Columbia (table 1).
Does Fed prefer CPI or PCE?
'” According to her, the PCE is a broader and timelier measure of consumer behavior than the CPI, and that's why the Fed prefers it. But being preferred doesn't mean it's the only measure Fed officials look at. “The CPI provides us a lot of information about inflation,” Smith said.
Is CPI or PCE better?
The PCE includes more comprehensive coverage of goods and services. PCE data can be revised more extensively than the CPI, which can only be adjusted for seasonal factors and only for the previous five years.
What time is PCE released?
Dec 27 2020 — Jan 2 2021Sort By: Date | Name8:30 amTrimmed Mean PCE Inflation RateThursday December 01, 20228:30 amTrimmed Mean PCE Inflation RateFriday December 23, 202244 more rows
What is core PCE inflation?
Core inflation is measured by both the CPI and the core personal consumption expenditures (PCE) index. The PCE represents the prices of goods and services purchased by consumers in the U.S. Since inflation is a measure of the trend in rising prices, PCE is an important metric in determining inflation.
WHO calculates PCE?
The Bureau of Economic Analysis (BEA)The personal consumption expenditures price index—better known as the PCE index—is one of the main measures of inflation and consumer spending trends in the U.S. economy. The Bureau of Economic Analysis (BEA) publishes the PCE index each month to track spending and inflation.
What is PCE inflation rate?
The personal consumption expenditure price index (PCEPI) is one measure of U.S. inflation, tracking the change in prices of goods and services purchased by consumers throughout the economy. Of all the measures of consumer price inflation, the PCEPI includes the broadest set of goods and services.
Why SPCE stock is dropping
SPCE stock's fall after the successful flight took some investors by surprise. However, it's worth noting that, ahead of the flight, the stock had run up and SPCE's valuation was astronomical. Maintaining that post-flight would have been unlikely.
Virgin Galactic announces more space flights in 2021, share sale
Also impacting SPCE stock was Branson’s anticlimactic "major announcement"—whereas markets were expecting something big, the company simply announced that it's planning two more test flights in 2021.
Virgin Galactic stock's price prediction
Analysts' median target price for Virgin Galactic stock is $43, 30 percent higher than its current price. The stock is 54 percent below analysts' highest target price of $51, but 40 percent higher than their lowest target of $20.
Will SPCE stock recover?
SPCE stock seems to have bottomed out and should recover soon. Its valuation looks much more reasonable for a pre-revenue company, and its market capitalization is just above $8 billion now. Furthermore, the $500 million stock offering isn't a major dilution, considering the company’s market cap.
The pharma stock is moving in the opposite direction of the overall market
Keith began writing for the Fool in 2012 and focuses primarily on healthcare investing topics. His background includes serving in management and consulting for the healthcare technology, health insurance, medical device, and pharmacy benefits management industries. Follow @keithspeights
Key Points
Pfizer's shares fell as the overall market rose after a pullback in recent days related to omicron concerns.
What happened
Shares of Pfizer ( NYSE:PFE) were sinking 4.4% as of 11:18 a.m. ET on Tuesday. The big drugmaker didn't report any new developments. Today's decline appears to be a by-product of the overall market rising after a pullback in recent days due to concerns about the spread of the coronavirus omicron variant.
So what
The reality is that little has changed in the expectations about the impact of the omicron variant since Monday when Pfizer's shares rose while many stocks were dropping. As such, little has changed about Pfizer's prospects. Today's move is probably more noise than anything else.
Now what
Investors will definitely want to monitor how the efficacy of Pfizer's vaccine with a booster dose fares against the omicron variant. If the efficacy wanes, it could lead to new orders for the omicron-specific vaccine version that Pfizer and BioNTech are developing.
NYSE: PFE
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NYSE: PFE
So why are these vaccine stocks tumbling today? Investors appear to be looking past the current surge in COVID-19 cases and expect a future where fewer vaccine doses are administered.
So what
Investors should always look forward. And the number of COVID-19 vaccine doses sold by Pfizer, BioNTech, and Moderna could very well decline significantly after 2022 (or perhaps 2023).
Now what
Cuba Gooding, Jr.'s character in the movie Jerry Maguire had a famous line that seems applicable for Pfizer, BioNTech, and Moderna: "Show me the money." The main thing for investors to watch with all three companies is the money -- in particular, supply deals for COVID-19 vaccines for beyond 2022.
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