Finance

St. Louis Federal Reserve President James Bullard advocated for the central bank to be aggressive as it starts winding down its monthly bond-buying program.
“I’ve been advocating trying to get finished with the taper process by the end of the first quarter next year,” he told CNBC.
Bullard said he is optimistic the economy will growth strongly into next year.

St. Louis Federal Reserve President James Bullard advocated Tuesday for the central bank to be aggressive as it starts winding down its monthly bond-buying program in case inflation becomes a larger problem.
In a CNBC interview, the Fed official said he thinks it’s a 50-50 chance that the current inflation pressures are transitory, so policymakers have to be ready.

The Fed is largely expected to announce next month it will begin tapering minimum $120 billion a month asset purchase program, with a target date probably by mid-2022.
Bullard said he’d like to see more faster action.
“I’d support starting the taper in November,” he said on “Closing Bell.” “I’ve been advocating trying to get finished with the taper process by the end of the first quarter next year because I want to be in a position to react to possible upside risks to inflation next year as we try to move out of this pandemic.”
Fed officials say they’d prefer to have the tapering finished before rate hikes start.

The remarks come the same day that the International Monetary Fund cautioned that inflation could persist longer than expected. In doing so, the IMF advised central banks to come up with contingency plans to tighten policy should that be the case.

Bullard said he is optimistic the economy will growth strongly this year into next, even though he joined his fellow policymakers in marking down their 2021 U.S. economic growth outlook.
The Fed has stressed that even if it starts tapering this year, that shouldn’t be considered a sign about looming interest rate hikes. Officials have said they believe the Fed has met its inflation mandate of 2% growth, but that it’s still some distance away from its goal of full and inclusive employment that would trigger a rate hike.
“There’s no reason for us to commit one way or another at this point,” Bullard said. “I just want to be in a position in case we have to move sooner that we’re able to do so next year in the spring or summer if we have to do so.”
Some of the more hawkish Fed members — those who favor tighter policy –—have raised questions about the Fed narrative that inflation is transitory. Earlier in the day, Atlanta Fed President Raphael Bostic said he doesn’t even want workers at his office to use the term, preferring instead “episodic” to describe current conditions.
Bullard also has raised doubts about the theory that the inflation run is being caused primarily by supply chain problems.
“A supply shock alone cannot cause inflation,” he said. “A supply shock being accommodated by very easy monetary policy, it’s those two things that lead to the inflation.”
Still, he said he thinks the U.S. economy is in a good place and doesn’t not believe it is seeing 1970s-style stagflation, or inflation with negative growth.
“The probability of recession is exceptionally low at this point,” he said.

Become a smarter investor with CNBC Pro.Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.Sign up to start a free trial today.

WATCH LIVEWATCH IN THE APP More

Cathie Wood is moving her investment firm’s headquarters to St. Petersburg, Florida on Nov. 1.
The disruptive innovation investor said individuals and companies flocking to more affordable areas of the country should keep inflation at bay.
“We believe that St. Pete wants to become the next Austin and attract tech companies, attract innovation,” Wood said during an Ark Invest.

Cathie Wood, founder and CEO of ARK Investment Management LLC, speaks during the Skybridge Capital SALT New York 2021 conference in New York City, September 13, 2021.
Brendan McDermid | Reuters

Closely followed innovation investor Cathie Wood said the migration trend playing out in her own company is further evidence that investors should fear deflation instead of inflation.
Wood — founder, CEO and CIO of Ark Invest —is moving her investment firm’s headquarters to St. Petersburg, Florida on Nov. 1. The disruptive innovation investor said that individuals and companies flocking to more affordable areas of the country should keep inflation at bay.

“The cost of living [in St. Petersburg] is anywhere from 20% to 40% less than in New York City and that includes the rents,” Wood said during an Ark Invest webinar Tuesday.
“The exodus, or the great migration is from the very high-rent areas of the world to much lower rents. So there’s going to be a mix effect that many are not taking into account as they’re thinking about inflation,” she added.
Wood has been vocal about her theory on deflation. While many market participants are concerned about rising prices, the Ark Invest founder expects deflation amid a breakdown in commodity prices, gridlock on tax policy in Washington and innovation trends taking off.

The hot-handed investor is also trying to put St. Petersburg, which is west of Tampa, on the map for the innovation community.
“We believe that St. Pete wants to become the next Austin and attract tech companies, attract innovation,” Wood said. “We’re seeing all levels of the government work together this very cohesively, which is very refreshing. They are very excited that Ark is hereto help with that process.”

The company also announced last week the groundbreaking of the Ark Innovation Center will take place during the first quarter of 2022 in St. Petersburg. This will include a facility to help attract and retain top talent by supporting entrepreneurs and tech start-ups in St. Petersburg and the Tampa Bay region, according to Ark’s news release.
“I think this region of the world is going to burgeon, this region of our country is going to burgeon because of its focus on innovation,” she added.
Wood also added that St. Petersburg is “incredible” from a quality of life perspective.

WATCH LIVEWATCH IN THE APP More

The Airbnb logo is seen on a little mini pyramid under the glass Pyramid of the Louvre museum in Paris, France, March 12, 2019.
Charles Platiau | Reuters

Check out the companies making headlines in midday trading.
MGM Resorts — Shares of MGM Resorts jumped 9.6% after Credit Suisse upgraded the casino stock to outperform from neutral. The firm said MGM’s new operations and solid cash flow should make the stock attractive to investors. “MGM has gone through a transformation, recently announcing four transactions, and we believe the market is not giving full credit,” Credit Suisse said.

CureVac – Shares of the German biotech firm slid 4.6% after it withdrew its Covid-19 vaccine application in Europe, following a decision by the European Medicines Agency not to fast-track the approval process for CureVac.
Solar power stocks — Solar stocks have been on a tear this week amid global worries about an energy shortage. Enphase Energy rose 5.3%, while Sunrun rallied 8.5%.
Airbnb —  Shares of the lodging rental company jumped 3.7% after Cowen upgraded the stock to outperform from market perform. The Wall Street firm said Airbnb’s growth next year will top expectations amid strong demand for alternative lodging. Cowen hiked its price target on Airbnb to $220 per share from $160 per share.
Nike — Shares of the sportswear company rose 2% after Goldman Sachs initiated coverage of the stock with a buy rating. The firm said there could still be upside to the stock as Nike will likely benefit from more customers focusing on wellness, “a likely increased casualization of fashion trends post the pandemic.”
Signet Jewelers — Shares of the jewelry retailer slipped 0.5% after the company announced the acquisition of rival Diamonds Direct for $490 million in cash. SIgnet said the acquisition would add immediately to the company’s earnings. 

Fastenal – Fastenal shares advanced 3.1% following the company’s third-quarter earnings report. The industrial products maker earned 42 cents per share, which was in-line with Wall Street’s expectations, according to estimates from Refinitiv. Revenue came in at $1.55 billion, slightly ahead of the $1.54 billion analysts were expecting.
General Electric — Shares of the industrial company dipped 1.3% after JPMorgan reiterated its neutral rating on the stock. JPMorgan analyst Stephen Tusa said that the stock appeared overvalued even if he adopted more optimistic projections put forth by other analysts.
— with reporting from CNBC’s Hannah Miao, Jesse Pound, Tanaya Macheel and Yun Li.

WATCH LIVEWATCH IN THE APP More

Coinbase has opened a waitlist for a marketplace that lets users mint, collect and trade nonfungible tokens.
The NFT market has boomed this year, with sales volume topping $10 billion in the third quarter, according to DappRadar.
The move could be a way for Coinbase to branch out into new revenue streams — it currently relies heavily on exchange fees.

Coinbase is getting into NFTs.
The cryptocurrency exchange said Tuesday it plans to launch a marketplace that lets users mint, collect and trade NFTs, or nonfungible tokens. Users can sign up to a waitlist for early access to the feature, the company said.

NFTs are one-of-a-kind digital assets designed to represent ownership of online items like rare art or collectible trading cards. They aren’t fungible, meaning you can’t exchange one NFT for another like you could with bitcoin and other cryptocurrencies.
Sales of such tokens have boomed this year. The NFT market topped $10 billion in transaction volume in the third quarter of 2021, according to DappRadar, a company that tracks data on crypto-based applications.
Notable purchases include the almost $70 million someone shelled out for a digital collage made by Mike Winkelmann, the artist known as Beeple, and the nearly $3 million another person paid for the first-ever tweet.
Coinbase said its NFT marketplace, called Coinbase NFT, would include “social features” and tap into the so-called creator economy, a term used to describe the world of people who make money posting videos and other content online.

Advocates say NFTs are a way to fairly compensate artists who’ve seen their income decline due to the widespread availability of media online. Critics, on the other hand, view them as another speculative bubble in the crypto market that’s waiting to burst.

Still, a move into the NFT space could be a way for Coinbase to branch out into new revenue streams — the company is currently heavily reliant on exchange fees. It would also pit the firm against other crypto start-ups like Gemini, Binance and OpenSea, which is backed by early Coinbase investor Andreessen Horowitz.
Last month, OpenSea admitted insider trading took place on its platform. The company is by far the biggest NFT marketplace, according to DappRadar.

WATCH LIVEWATCH IN THE APP More

Workers fired for refusing to comply with an employer’s Covid vaccine requirement have a few options available to replace their workplace health insurance.
The options are the same for anyone who loses a job and their employer-sponsored coverage.
The best options include: a spouse’s employer plan, continuation coverage through COBRA and an Affordable Care Act marketplace plan, according to health experts. Other plans are available but are often less comprehensive and could lead to big medical bills if there’s a claim.

d3sign | Moment | Getty Images

Thousands of workers across the country have been fired for refusing to comply with an employer’s Covid vaccine requirements — and may now wonder how to replace their workplace health insurance.
There are a few options. They’re the same ones available to anyone who loses a job, even for a non-vaccine-related reason, according to health experts.

However, there may be drawbacks ranging from cost to stingy coverage, depending on the selected option, they said.
Here are the ways to get insured.

Spouse’s employer plan

Employer-sponsored coverage through one’s spouse is likely the best place to start, according to Karen Pollitz, a senior fellow at the Henry J. Kaiser Family Foundation.
“I’d first look to see if I could join another group health plan,” Pollitz said. “That will probably be your best deal.”
Typically, enrollment in a workplace health plan happens only once a year, during the annual open-enrollment period near year’s end. This is when employees can sign up for coverage for the next calendar year.

More from Personal Finance:Steps to rebuild retirement savings plan after being unemployedMedicare open enrollment starts soonHow much do I need to retire?
But since losing a job (and the associated employer-sponsored health insurance) also qualifies someone to sign up outside that open-enrollment window, newly unemployed people can enroll for coverage through their spouse’s work plan at that time, as well. Doing so would provide insurance coverage for the remainder of 2021.
You must request special enrollment within 30 days from the loss of your job-based coverage, according to the U.S. Department of Labor.

COBRA

The Consolidated Omnibus Budget Reconciliation Act — better known as COBRA — lets the newly jobless continue their workplace coverage for up to 18 months.
The option is available for health, vision and dental benefits.
But there’s a catch: Coverage will likely be much more expensive than while employed — and at a time when one’s income has evaporated.
“The concern is the cost associated with it,” said Christopher Moran, partner and employment attorney at law firm Troutman Pepper Hamilton Sanders. “I think most people would be offered the option, but the question would be whether they can afford it.”

An employer generally subsidizes health benefits for workers; the employee pays just a share of the monthly premium and other costs. But that perk disappears with COBRA coverage.
For example, families paid $21,342, on average, in 2020 for health insurance premiums, according to the Kaiser Family Foundation. But workers’ share of the annual cost was just $5,588 — employers paid the remaining $15,754.
Under Cobra, an ex-employee would be on the hook for the full $21,342 — plus an extra 2%.
The American Rescue Plan, a pandemic relief law President Joe Biden signed in March, offered free COBRA insurance coverage to the unemployed, but the benefit ended Sept. 30.
One caveat: COBRA isn’t available to private-sector businesses with fewer than 20 employees. Some states have laws similar to COBRA, sometimes called “mini-COBRA,” which may apply to smaller employers, according to the Labor Department. The agency recommends checking with your state insurance commissioner’s office to see if such coverage is available.

Affordable Care Act plan

Losing job-based health coverage also qualifies someone for special enrollment in private health plans through an Affordable Care Act marketplace.
Plans are available through healthcare.gov. Individuals must choose a plan within 60 days of losing workplace coverage.
Depending on household income, a jobless individual may qualify for subsidized coverage (via premium tax credits or cost-sharing reductions).

Beware of the other stuff that’s available. They have all sorts of ways to get out of paying claims.

Karen Pollitz
senior fellow at the Henry J. Kaiser Family Foundation

The American Rescue Plan expanded eligibility for subsidies through 2022. For the first time, individuals with incomes over 400% of the federal poverty line can qualify for premium tax credits, which reduce monthly premiums, according to the Brookings Institution.
One caveat: Eligibility for the subsidies is based on full-year income. Someone who loses a job in October or November, for example, may not qualify for the aid for 2021 coverage; however, they may qualify when enrolling for 2022 coverage.

Medicaid

Medicaid, a free or low-cost public health program for low-income Americans, weighs one’s current income (as opposed to annual pay) for eligibility. So, the newly jobless may qualify for Medicaid more easily, experts said. (Eligibility is based on total household income.)
Individuals can find out if they qualify by applying through healthcare.gov, as they would for a marketplace plan, Pollitz said.  

Other plans

There are other insurance options available for purchase year-round, regardless of a qualifying event. They include short-term health plans and health-sharing ministries, for example, Pollitz said.
These plans carry less expensive monthly premiums — but don’t often offer comprehensive protection (like maternity care and mental health services) as employer-sponsored or marketplace plans would, Pollitz said. That could leave individuals with big medical bills if they need care.
“Beware of the other stuff that’s available,” Pollitz said. “They have all sorts of ways to get out of paying claims.
“You are not very well protected under a policy like that, and could end up owing all sorts of medical bills that won’t be covered.”

WATCH LIVEWATCH IN THE APP More

Take a look at some of the biggest movers in the premarket:
GlaxoSmithKline (GSK) – The drugmaker’s U.S.-listed shares jumped 3.1% in the premarket following a Bloomberg report that the company’s $54 billion consumer products unit is attracting buyout interest from private-equity firms. Glaxo would only say it is “far advanced” with plans to separate the consumer business.

CureVac (CVAC) – The drugmaker’s shares tumbled 15.5% in the premarket after the company said it would discontinue the development of its most advanced Covid-19 vaccine candidate. The decision came after the European Medicines Agency told the company it would not fast-track the approval process.
Airbnb (ABNB) – Cowen upgraded Airbnb to “outperform” from “market perform,” saying the Street is underestimating 2022 bookings growth and that the increase in alternative lodging will be a permanent part of the travel landscape. Airbnb shares gained 2.4% in the premarket.
Signet Jewelers (SIG) – The jewelry retailer announced the acquisition of rival Diamonds Direct for $490 million in cash, and said the deal would add immediately to earnings. Signet rallied 3.1% in premarket action.
Nike (NKE) – Nike rose 1.3% in premarket trading after Goldman Sachs initiated coverage with a “buy” rating, citing a healthy industry backdrop as well as strong growth initiatives by the athletic footwear and apparel maker.
Fastenal (FAST) – The industrial products maker matched estimates with quarterly earnings of 42 cents per share, with revenue essentially in line with forecasts. Fastenal said it continued to experience inflation related to materials and transportation costs, and its shares fell 1% in the premarket.

Southwest Airlines (LUV) – Southwest Airlines said it is hoping to normalize its schedule by Wednesday, after canceling 28% of its flights this past weekend and 10% on Monday. Southwest has cited bad weather in Florida and staffing issues for the higher level of cancellations.
MGM Resorts (MGM) – MGM Resorts was upgraded to “outperform” from “neutral” at Credit Suisse, which set a price target for the resort operator’s stock at $33 per share. Credit Suisse feels MGM has not been given enough credit by the market for its ongoing transformation. MGM rallied 2.4% in premarket trading.
Tesla (TSLA) – Tesla sold just over 56,000 vehicles made in China during September, the largest monthly total since it started production in Shanghai two years ago. Tesla rose 1% in premarket trading.
Square (SQ) – Square was upgraded to “overweight” from “neutral” at Atlantic Equities, which cites valuation, strong growth prospects and a disruptive business model. The payment service’s stock rose 1.6% in the premarket.
Moderna (MRNA) – Moderna added 1% in premarket trading, ahead of Thursday’s Food and Drug Administration panel meeting on the company’s application for approval of booster shots utilizing its Covid-19 vaccine. Briefing documents are scheduled to be posted this morning, shedding some light on the prospects for approval.

WATCH LIVEWATCH IN THE APP More

Earnings may give stocks a major boost starting this week.
Ally Invest’s Lindsey Bell finds the third quarter is undeniably the most powerful earnings season for Wall Street.

“We’re starting to think about the end of the year into next year, and you start to hear corporate management teams talk about that,” the firm’s chief investment strategist told CNBC’s “Trading Nation” on Monday. “That gets investors revved up about what’s yet to come.”
Bell highlights the bullish trend in a special chart. It shows the S&P 500’s average change by earnings season since 2000.

Arrows pointing outwards

According to the data, the index is up 2.5% in the mid-October to late November time frame, which coincides with third-quarter earnings. Second-quarter and fourth-quarter earnings season both fall 0.3%, on average.
Bell anticipates the pattern will continue.
“This is the first quarter in four quarters that we’re actually seeing earnings estimates move a little bit lower into the reporting period,” said Bell, a CNBC contributor. “At the same time, we’ve also seen the market move lower going into the reporting period. We haven’t seen that for a good four or five quarters. So, the set up looks good for stocks.”

However, she has inflation on her watch list as a potential headwind.
“It’s all going to come down to the commentary about margins and pricing power,” Bell added. “The performance is going to be on a one-off basis. And, it’s going to really favor companies that are high quality that can handle higher costs and are also able to pass through pricing power to the consumer.”

‘That reopening trade is coming back alive’ More

Stock futures were little changed in overnight trading on Monday after Wall Street kicked off the week on a sour note.
Futures on the Dow Jones Industrial Average dipped 20 points. S&P 500 futures and Nasdaq 100 futures were both down by 0.1%.

The market suffered losses to start the week with the blue-chip Dow shedding 250 points. The S&P 500 fell 0.7% Monday with nine of the 11 sectors registering losses, while the tech-heavy Nasdaq Composite dipped 0.6%.
“There are a lot of headwinds out there as we embark on corporate earnings, and traders will be looking for any and all indications of guidance — especially as the threat of slower growth looms large,” said Chris Larkin, managing director of trading at E-Trade Financial. “As new data emerges and traders gain some potential insight into growth prospects, it may be wise to prepare for more bumps in the road.”
JPMorgan Chase and other big banks are about to kick off the third-quarter earnings season later this week. Earnings growth is expected to grow about 30% year over year this quarter following a 96.3% expansion in the second quarter, according to Refinitiv.

Stock picks and investing trends from CNBC Pro:

“Expectations for third quarter earnings have been coming down in recent weeks and that should create some room for upside surprises, which is good for overall market sentiment,” said Rod von Lipsey, managing director at UBS Private Wealth Management.
Investors will monitor the latest employment data on Tuesday as the Labor Department releases its Job Openings and Labor Turnover Survey. Economists polled by Dow Jones expect 10.9 million job openings in August, unchanged from the total in July.

The stock market went through a bumpy ride in September, with the S&P 500 falling 4.8% for its worst month since March 2020 and breaking a seven-month winning streak.
Wall Street major strategists are seeing muted returns for the rest of 2021 as the average year-end S&P 500 target stands at 4,433, less than 2% from Monday’s close, according to the CNBC Market Strategist Survey.

WATCH LIVEWATCH IN THE APP More