lead in the second half for ai >> jny harrington. >> no breakout and a solid 8.4% on sabra health care a very well managed investment trust. >> joe t >> a valuation stock that is breaking out, steel dynamics, stld. >> a nice move today see you on "closing bell." "the exchange" is now. scott, thanks so much. welcome to "the exchange." i'm wilfred frost in for kelly, vans >> the fed going down to one rate cut is the market ready for more how to position against that black drop dave calhoun set to leave the company by year's end and we'll talk to an analyst about what's next for the company and the stock. this week, we're going around the world to find opportunities around the world and we kick things off with china today.

greenshares' cio here with where he sees the biggest returns and dom chu is here with the stocks. >> we'll start on the domestic side of things before the international conversation here in the u.s. we have the dow, the s&p and the nasdaq all dyess wan decently in the record highs, and we pull back with the s&p 500 which currently sits at 5224, and at the highs of the session we were still down roughly six points in the s&p and we were down 18 points at the low. there was your intraday trading range and the dow drindustrials one-third. the nasdaq composite only down 0.1%, 16,412 was the last trade. within the electronic vehicle theme there is one developing here because we are seeing a bit of a mixed picture overall, but generally speaking some interesting moves.

lucid shares are well off session highs after the company was able to raise money in a saudi investment fund to the tune of $1 million tesla, rivian and nio, and more to the upside even though analysts at mizuho have downgraded each of those stocks in the ev space given the ev demand and the rise of internal combustion back again and watch the electric vehicle space there. another stock to keep a close eye on is what's happening overall with shares specifically in chinese oriented at least right now and advanced micro and intel producers moving toward different directions after the ft reported this weekend that the chinese government may look to phase out and try to limit the use of american-based chips and some of the government servers and computers and that dine ammaic v

dynamic. >> we'll discuss china later on in the show and first we begin with boeing moving higher after the company announced the ceo dave calhoun will step down in the wake of the latest 737 max crisis shares are down more than 40% since calhoun became ceo back in january 2020 and despite today's move, boeing remains by far the worst name in the dow falling nearly 30% since january phil lebeau spoke with the outgoing dave calhoun and joins us with more my sort of the top of mind question is the timing of this were you very surprised or slightly surprised that shareholders want it sooner or later? >> not surprised once you heard that the airline ceos wanted to meet with the board chair and directors without dave calhoun, without stan deal, the head of the lanes the board was feeling pressure it was going have to make some decisions and when we talked to dave calhoun he talked about

that and we'll hear from him in just ray bit and his departure he leaves until the end of the year and one of three moves that were announced today dave calhoun remains ceo through the end of the year. he retires through the end of the year larry kellner, chairman of the board resigns immediately and stan deal, he has stepped down you have three major jobs that have changed quickly here's dave calhoun talking about the focus now being on the board of directors and what it does next. >> this is a long, very long cycle business and nobody is more aware of the mountains that have been climbed and the remedies that have been put in place than the board they want to go at the right pace and they want to do it the right way and they want to do it with real foresight and they want to see people demonstrate capabilities and position. so that set of moves that we just talked about in my view puts them in the very best position to make those decisions over the remainder of this year

and be ready to go in the beginning of next year >> all right who is the new ceo or chairman of the board for boeing. it's this man, steve malinkof who has been director since 2020, former ceo of qualcomm and is tasked with finding the next ceo of boeing. he'll be leading a 1search and they'll put that together in the weeks and months to come as you take a look at other important people who have moved in the jobs here stephanie pope goes from being ceo of boeing global services and that is effective immediately. take a look at shares of boeing versus airbus over the last year remember that mass production is currently capped at 38 per month, will and it's important to point out they're nowhere close to 737 max production of 38 per month they are deliberately going slower than that and they want

to make sure that a, they eliminate the travel to work and they send the plane forward and do it later on they want to get rid of that and they want to make sure they have new safety protocols, quality control protocols in place so that they can eventually say to the faa, look, we have learned our lesson, we are doing things the way they should be done and that's going to take some time >> it's going to take some time and it's a tough balance and it's funny you're in front of the ryan airplane. the ceo wants to see the pace pick up. >> and you understand why ryanair and why southwest why so many of the customers of boeing are frustrated right now look, when you sign up to buy x number of planes, usually 50 to 150 and you spread it out over six, serve years you were can'ting on those planes to be delivered when you set up that delivery schedule. that has been a mess over the last year and as a result you

have people like michael o'leary saying give me certainty if you can't do it and you can't deliver, i don't know, 20 of the 737 maxes we're expecting this year, tell me that, but don't tell me yeah, you're going to have them and yeah, you know what you're not going to have all 20. finding the certainty, job number one for stephanie pope and the new ceo of boeing. >> phil, as always, great stuff. thank you very much. let's debate this furth sdper bring in our panelists who are tony bankcroft and covering aerospace at bank of america securities and a very good afternoon to you both. tony, to you first of all, are you pleased calhoun is leaving >> great to be back. you know, i think overall this was an orderly transition that boeing was making in the long

run. obviously calhoun will be 67 and they extended the retirement age for him and he was never going to get to 70 and january probably accelerated the time line somewhat, but overall, i think he's here to finish the job. he's bringing the ability to boeing and i think that's sort of how he'll finish the job, and i think the second piece is getting the vertical integration like he talked about with spirit and getting negotiation started and that's the stepping-stone for the next ceo to take over. >> the stock's up 1.5% and it's up more in the pre-market. does that make sense to you? would it build on these gains? >> investors are look for a catalyst for change. it's a company, clearly, dissatisfaction that customers were having, something had to

happen and you see a big change, a change in ceo and a change in chairman of the board with the commercial company and you need to bring in, the big question now is who is going to be the next leader and who are they going to bring with them and this next leader has to bring with them a unicorn of a role they have to regain confidence with the regulator and regain confidence and regain confidence with customers and also the flying public. so it's a big job, but i think, you know, change is better than no change and we're partially for this i'm not surprised shares were up and i was expecting more and there's uncertainty in terms of who will lead the company next. >> on that note, as tony said, there's been some expectation that calhoun wouldn't be there

forever for a while. is the next candidate definitely going to be one of these internal names that phil just ran through, and if so, is their authority undermined by what they're not being announced already? >> i think that's going to have to be considered by the search committee. so i would imagine they will look internally and externally and there's talent within the company and there's talent outside the company and to your point, having not named someone today, could that take away -- it could, but that's a factor that would have to be considered this is a lot in one day we heard people asking, why is calhoun leaving today. you can't leave the ceo and the chairman of the board and the president of the largest division in one fell swoop and not have a plan. so you need some transition and time to work it out and i'm honestly not surprised that you don't have a replacement named today, but they'll sort it out and we'll get there. >> tony, are you still happy

with this investment >> yeah. it's one of our largest holdings in our commercial aerospace and defense, active etf and we are long term owners and we -- >> oh, we might have lost. we'll come back to tony if we do get him back ronald, talk us through your recommendation of the stock at the moment and i believe you have a hold. why is it a buy? >> yeah. so we're neutral it's a clear tension here. if you look at the commercial aerospace cycle, it's booming. there's a lot of demand for airplanes and the demand for travel and the long-haul travel and the larger airplanes and the 787 and 777 and the demand is picking up and that's all goodness and all of this uncertainty in production rates and management weighs on the shares i don't think there's any rush

to jump into the shares at the moment and i think they're going to be rangebound and that's what our rating reflects. >> final question to you you said at the top that the january 5th incident accelerated things in terms of transition. i wonder if you'll go further than that, did that totally undermine his entire tenure and legacy when he was brought in to rebuild trust in the brand looks like -- >> go ahead, tony. we've got you back >> sorry about that. i think overall it -- he had worked with a lot. he had quite a big load to carry in the 18 and 19 mishaps and he's done a good job bringing boeing forward, and i think there's a short -- >> well, with that -- it's like being on a plane and not perfect wi-fi connection

tony, we got the gist and we appreciate it. ron, as well thank you to you both. there was a two-year auction, a two-year note auction that took place moments ago. rick santelli has the action for us what were the headlines here >> well, wolf, the metrix were good let's go through it. $66 billion two-year note, the biggest two-year note auction in history in terms of size, the yield 4.595. one market was trading 4.59 which means it had half a basis point tail tails are never good and you'd rather sell it, of course, with a lower yield than the when issued market, but having said all that all of the metrics other than pricing were pretty good, so i gave it a c+ you had 65.8 best since june 2023 and they were dealers because they only took 13.4%

with a 16% auction over the last ten. so all of the metrics were pretty good. tomorrow we have five year and that's the biggest five-year ever, as well. we finish up with 43 billion seven years for the package of $167 billion and wolf, as you see yields fall, you see them fall about a basis and a half and you saw the intraday chart as you look at the chart going back to january, we are hovering close right to 7.2% and metrics look pretty good on the day when yields were mostly rising and that, in my opinion, was probably one of the issues that made the pricing a little messy. back to you. >> very quick, rick. >> i'm looking forward to the five-year tomorrow, as well. >> given the elevated supply is a c+ the best we can hope for at the moment? is that a good grade

>> c+ isn't a bad grade. without taking a direct stand, any of these options that are slightly better are a good thing because as you pointed out and as "the wall street journal" has a big article today and as we talked about on cnbc a lot, it will remain large and the options will remain large and the question everyone asking is our foreign entity will continue to step up to the plate or domestic buyers like mutual funds and insurance companies will have to stand up to some of the shifting demand of those foreign interests. >> rick santelli, thanks so much the atlantic president, rafael bostick sdaling back to one, according to economic data and inflation concerns this is the latest sign from the fed that it is turning more hawkish. my next guest says it hasn't been priceded into market just yet. i am vice chairman and head of

the investment group charlie, nice to see you >> i'm doing great, wolf welcome back to the states >> thank you very much, it's great to be here great to have you join us. do you know, i'm not surprised to see a headline in your notes that you think potential hawkishness or dovishness from the fed isn't priced into the market yet if we don't see a rate cut by the first half of this year, that's worth what level of pullback in equity markets >> well, we'll know something on friday friday is a big number, it is the pce number or guide. and everyone thinks the number will be benign 4.2% year over year right now the market is taking comfort from whattel said haft week with a a cut that was

dovish and i talk about one cut, that is not priced higher and some of the cyclical, rate-sensitive names could get hit and it's hard to put a number on it and we'll know a lot on friday and you know the markets are closed and we don't get a verdict until monday and it's an important week >> that said, one can point to the fact that markets have continued to all-time highs in recent years with higher rates and also just since the start of the year, charlie, we've gone from expecting six or seven rate cuts in the marketplace to three and yet we're up 10% so when will the higher rates narrative actually derail stocks >> i think when the direction changes. in the long run, three years from now it's not going to matter when the first rate cut came, whether it's three or six. if the consensus is we'll return to a normal yield curve with

short-term rates more like 3%, than 5.5% then everything will be fine. no doubt that the economy has been stronger than people expected which is that the fed has been slower at cutting rates than people had expected and that's good news and that's why the market is higher some cyclical names and some housing-related names have done well and some sft mohawks and building supply companies are down 20% which is all based on good news. so things can still work from here, but again, what derails this all is if we get high inflation and an end to rate cut. >> what's your take on mosaic and seeing a bid on commodity names and some broadly in the last couple of months they've been doing okay particularly as rate cuts talk has come in what's your take on that one >> yeah. so people have the fertilizer companies have not done as well as we would have expected. we believe long term we have population growth still.

we have a decline in arable land and it's been choppy as people think we will get a resolution to the war in russia and ukraine. russia and belarus are big producers, and it's still makinga i lot of money and the stock is trading at 10 to 11 times earnings with great barriers to entry long term. >> you kind of hinted to it earlier, but what is your expectation for the shape of the yield curve say by the back half of this year and how does that influence your thinking of financial stocks >> naturally, you should get a more to lend money to the government than one year we've had this very strange inverted yield curve and it is very hard on the goldman sachses of the world and i would expect a return to the normal yield curve and let's call it 3.5% to

2.5 short-term rates and more like 4.5% ten-year rates and that's a normal slope yield curve that would be very positive news for a lot of financial institutions it would -- it's an argument for why people probably should be careful about thinking they're going to get 5.5 short term forever. >> charlie, a pleasure to see you as always. thanks so much >> charlie from aerial still to come, china facing a fork in the road and we'll look at the likely path forward and what it means for investors and the market plus richard fisher will join us since the fed's most recent meeting and we'll ask him about whether last week's decision is changing his time line for rate cuts you're watching "the exchange" on cnbc. we're back after this. >> this is "the exchgeon bcan"

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>> welcome back to "the exchange." the dow is down 0.4% and the s&p down 0.2 and the nasdaq down 0.1% china is hosting various u.s. ceos including apple's tim cook as part of its development forum over persistent tensions over tech regulations tensions have been hurting companies on the mainland, as well the kraneshares china internet etf slid down 10% in the past year let's talk about all of this and where there are opportunities. brendan hur, chief investment officer at krane shares. thanks for joining us. my first question is about this gathering today. who is there we were talking all morning about the high-profile ceos that are there. who is there from the chinese side and are they senior enough that it actually makes this gathering quite significant? >> oh, yeah. 100%, very keynote speech give know by premier lee opening up

and addressing and acknowledging some of the challenges china's economy faces and reiterating their openness to foreign investors, foreign corporations as well as pushing a little bit of domestic consumption store and something that would benefit a lot of those u.s. ceos from multinationals that are doing great business in china today. >> and are tim cook and apple positively embraced? are they seen as apple as opposed to america's biggest company, if they are currently the biggest this week? >> last week tim cook opened the 35th iphone store or the 35th apple store in china in shanghai their largest store and thousands of people were waiting for the store to open. he was given almost a hero's welcome in china to show it was not just a venerable well-respected brand including

in china >> so let's talk about some of the companies you think are worth picking up in china, and you mentioned the positive consumer story that companies like apple want to be exposed to what are the domestic chinese names you think are worth buying with that theme in mind? >> we are coming out of the q4 earnings season for the internet companies holding kweb and you're seeing a potentially the trough taking place in q4. so we like the e-commerce plays because they're geared to that domestic consumption story as it comes back and that's your pin duo duo and alibabas and at the same time you're seeing a pickup in travel so trip.com is another name that we really like in the space as well as eating out in the very strong q4 results last

friday >> talk me through your current perspective on the valuations in china. clearly, a lot cheaper than they used to be and a lot cheaper than the nasdaq and a political risk as a foreign investor weigh that out for us. >> certainly, the valuation disparity between u.s. tech and china tech is just absurd. this is beyond dirt cheap. basically, they're just giving it away for free with that said, we have to think about what are the catalysts to bring investors back in the space, and i think the earnings season we saw in q4 and the projections for q1 look pretty strong at the same time we see very strong buybacks from the companies as well as some of them are paying out dividends and just with the forward p-e of just 14 which is about 50% of what the long-term average is, and it's a compelling opportunity and the companies are clearly believers in their growth prospects and i just

think investors start to in back and make money in china they'll start coming back with much stronger numbers >> david, thank so much. >> china's chip restriction with a series of policies on both sides looking to prioritize dommest being production today we're looking at three names that successfully short production and to one that's not managed that in a special three buys and a bell supply chain tradition and here with our trade is the founder of jewel financial. thanks so much for joining us. so let's run through these buys, first of all and the first one is general motors and hitting a 52-week high today and part of the reason for that is they've been moving the production stateside as it pushes towards an all-electric in the 2035 pledge. why are you buying that? >> good to see you again, wilfred, you're right. gm has been working hard to

pursue their partnership with global foundry in element 25 the toll is a concern for gm and this stock is trading under five times forward earnings and we see those earnings rebounding with the electric vehicle market so it's really just got really good risk/reward and it's been stagnant for quite some time and i think the onshoring methods have proven successful. >> let's talk about whirlpool, next up, which you're buying as well which is investing another $100 million into the mexican months and the share price performance. a lot of these are value plays and sometimes thmany of them are manufactured in mexico and this is a shoring play. the stock has certainly been a dud and again, this is another

one that has a little bit of a debt concern and it's playing seven and a half times forward and you get a 6% dividend of weight and we like whirlpool >> you've gone with ethan allen and the furniture maker and part of the trend, as well? >> yeah. this has been a historic onshoring and near shoring play and the majority of ethan allen's manufacturing was done in the united states with a small portion being done in mexico and honduras. this is a great company and historic compounding book value machine. this company has zero debt trading forward times multiple at ten, so relatively inexpensive and has grown those earnings in the high mid to high double digits for many, many years and then they have a nice dividend and they'll do a payout returning cash to shareholders so ethan allen is probably the top pick of all three here >> finally, we'll go with one that you're bailing from and

that is nike down 10% since the start of the year as it looks to diversify production out of china into places like mexico and it is getting an upgrade from evercore on comments that nike is pivoting back towards wholesale and focusing on growth -- excuse me, why are you dumping this one >> yeah. we heard it last week, will. this is a company that unfortunately is not firing on all cylinders and they gave us terrible growth outlook and if they hit the numbers it's basically a 1% earnings growth trading 23 times forward again, guidance of poor. they beat on the eps number and guidance poured into this environment and it will make the stock suffer and we don't want to have anything to do with nike good to see you. >> thank you >> still to come on "the exchange." a shortage of change with low supply and plenty of economic uncertainty, but homebuilders

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welcome back to "the exchange," everybody i'm tyler matheson with your cnbc news update and the jury selection for the hush money case will begin april 15th, tax day, after the judge will not delay the trial any longer the trial was set to start today and the judge did give trump's team time to review extra evidence that they received. the white house announced this morning a more than $6 billion effort to cut funding which largely comes from the inflation reduction act and it will go through nearly three-dozen projects in more than 20 states helping manufacturers electrify and decarbonize boilers and factories across the country paris resurrected a 110-year-old race where bistro waiters and waitresses -- lost the microphone dang it! fell off the tie here we go, ladies and gentlemen. watch this now do you hear me you see what they're doing,

can't you, wolf? they're there. they're delivering the water and a baguette or something there. >> i'm a little disappointed the spare arm is not behind the back >> you can't swing your arm and you might knock off other people's -- >> tres bien. >> fantastique >> if you were in a posh french restaurant you would be disappointed. >> you don't need this it was right behind the back. >> i would think french cooking is not about speed it's about quality >> good to see you i'll see you again in a little while from now the nasdaq is trying to turn positive and it's a matter of basis points and the dow is down a third of 1%. coming up, a closer look at the hawkish tilt on the heels of the latest central bank meeting and richard fisher's first reaction from the decision of last week and to the two-year auction note

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welcome back to "the exchange." earlier in the show mentioned the market not adequately

pricing in the risk of a more hawkish fed. it's not just the fed's rafael bostick getting more hawkish let's bring in steve liesman for more that tease sounds like you're very hawkish, but i don't think that's the case. you want to sum up the fact that the mark was a little bit too quick to say three cuts are coming after last week >> yeah. yeah i mean, i'll go with reporting where i think the fed is going, but wolf, it's worth pointing out two fed officials are reminding investors that there is a risk of going all in with that the fed will cut three times and start in june. lisa cook, the fed governor said a careful approach to further policy adjustments and sees only one down from two at a later start. fed chair jay powell at the press conference did talk in a somewhat dovish way with rate cuts and the committee as a whole was a touch more hawkish and not going overboard and a touch more hawkish take a look. forecasting more than the median

of three cuts and just one does now and that's december to the march making projections and nine here at the median and nine forecasting and fewer than three cuts that's it. one duffisovish part was more inflation. don't get too excited about that because the three-cut median survived by only one single vote much depends on inflation reports that are coming friday and actually forecast to rise and the court's expected to move sideways year over year at 2.8% even though it's down a tick month over month and the cleveland fed is not expecting much improvement in the march cpi whiches comes in april and h fed may cut in june or three times and that's the overall average forecast of the market with the futures, but you can't take the dots to the bank. there's a reasonable risk they go later and do less unless the

inflation numbers cooperation. so unless you have perfect vision, wolf, on the future you shouldn't have an all-in bet on the uncertain future >> you get the dotses and i've covered the bank of england more these days and you don't get the dots to play around, but we'll come to that in a moment and let's focus on the fed, first of all, and bring in former dallas fed president and senior adviser at barclays, richard fisher. is your take similar that people rush to the idea of three cuts based on the dots and a fairly dovish press conference? did they rush to the judgment a bit too fast >> i'm a retired dot i was a dot for many years [ laughter ] >> and i think steve is correct. don't take it to the bank, although i advise a bank we've gone from the silly expectation of six cuts and now you're popping around three, two to three

i think that will impact the bills market and here's a key point. you're looking at the smoke rather than the locomotive and what you see goes up from what the native-american tribes are being built. the railroad, the engine here is the u.s. treasury. look at this auction schedule that you have right now. when you come to market with 60 billion for ten years and they shoved things into the bill and the one-year space that's why rates are above 5% it's important to look at what the fed might do i think it's equally important to look at what treasury is doing. these levels are ungodly, and the dealers will have to deal with this and we're seeing some backup and some tails on these options and as well as focusing on the dot plot, the s&p and whatever the fed may be doing.

>> so what is the conclusion, richard, of that and maybe not even a couple of months' time, does the long end have to pick up a lot because of the supply and demand >> it depends on when they put pressure providing that supply versus the demand, but right now we're seeing that in the shorter space. at the end of last year, it is in the seven to ten years and now they're focused on the bills and six month, one year and i think that is one of the reasons we're seeing highly elevated rates. >> i guess the other way around this would be if the fed decided we'll let inflation run hot. i'm being told i'm looking at the wrong camera sorry. i've been away for a while [ laughter ] >> the fed just lets inflation run a little bit hot and it's dovish to try to make sure we get away some of the supply. do you think they do that or no? >> i don't think -- first of

all, they wouldn't say they would do it because the issuance of the treasury and first, i would just like to point out richard fisher is much more than a dot, and certainly a dot with tremendous rhetorical capability, that's for sure. >> i would also say, steve, by the way. you say you can't take the dot to the bank and perhaps barclays you would get a lot in return and you would probably get more mortgage rates anyway, please continue. >> different conversation, but let me just say there was an int magsz of the positive answer to your question and my question to chair powell, you are forecasting inflation and less unemployment and you're sticking overall to the three cuts. does that tell us that there is more tolerance for inflation i would point out that powell

did not answer that question in the affirmative, said no, we're still bringing inflation down to 2% the average dot suggests a little bit more average patience with bringing inflation down, wolf is what i would say >> what's your take? would they put up with a bit of inflation? >> no. remember he and the fed, and the horse left the barn and it took a while to get him back inside the barn, the inflationary horse and now they're calming it down. so he emphasizes with every presser that he has that this has to be a sustainable move into the 2% target, i can't see availing that at all and 4% is actually low so i don't see them giving in totally and on target.

>> richard >> steve >> i just want to be clear i'm not suggesting a higher target and i'm suggesting what is the tolerance over time in bringing it down. how much do they want to give up how much are they willing to sacrifice in term of the unemployment rate and growth and how quickly do they need to get to 2% in order to sort of begin cutting rates. that's my question i don't think they're going to challenge and come off of the target i just want to be clear about that the one thing that came out of the press conference that caught my ear was the idea of tight trading, the treasury roll off tight treasury, tell me what i learned in chemistry. >> i did not study chemistry for our viewers and for me -- >> diminishing in selling off and it was 78 billion a month

over this last month and i just now that some people are saying they'll go down to 30 and he said pretty soon, i expect that to come out. >> i expect one final question and the extent to which the developed world central banks particularly in the west and the swiss have obviously overgone, pcb and bank of england relative to how he normally talks last friday in the interview. will they want to move together? will none of these central banks want to be left behind to signal that we're changing direction or not? will the fed be focused on the statistics here? >> just on the statistics here and remember, they don't all move together and japan just bi barely moved and that's a special situation. i think the fed will do what's in our best interest in the united states and that's our

preoccupation. >> steve, final word >> very quickly. richard is 100% right. the only difference would be severe movements in the currency might create some change as to when they want to match or not match other essential banks if they need to keep the dollar from crashing or the euro from crashing we are nowhere near that, but only the currency differentials that affected the economy would cause that kind of concern with moving together. >> wilfred, we are nowhere near that it is trading at 104+ and it's been holding steady and it's still above where it was 20 years ago. >> richard, pleasure as always steve, great to see you. we will take a very quick break on "the exchange." we'll be right back.

encore energy, america's clean energy company, now in production in south texas. energizing america with reliable and affordable uranium for nuclear energy fuel from our environmentally friendly extraction process. encore energy. ♪ welcome back. we've got news that on citigroup, announcing that it's finished the final phase of the overhaul of jane fraser. sang in a statement, quote, today, we shared with our colleagues that we have concluded the major actions

that we announced in september 2023 that ally with -- aligned with citi's structure. while these decisions were not made easily, they have allowed us to strengthen how we run the bank and serve clients through enhanced -- up around 18% so far this year. citi has successfully been closing that discount get that it had suffered from for a number of years really since that restructure. $60 or so at the moment. sales of the -- fell slightly last month. for every purchase set to 675,000, the actual sales came in at 662,000, which is 3/10 of a -- percent lower. it still sees positive momentum in some areas of the housing market. let's bring in brown harris stephen. thank you so much for joining us. the first question of this data, do you think we should be

looking at the miss this month, or taking things in year-to- date as a whole? >> i think it is better to take things in year-to-date as a whole. month to month, things will change. i think the message will hopefully help to mitigate some of the volatility we've seen in the housing market. and look, there is a lot of pent-up demand. mortgage rates are starting to come down. hopefully over the ummer, the fed will put the rate, which will maybe hate -- helped to inspire the race to come down even further. the housing market has done incredibly well considering all of the headwinds with rates going up. and you know, the issue of the economy, which has been the biggest discussion of them all. >> when you said they started to come down, they came down 4 6 weeks ago. ticking back up as of late? >> yes. but now the dirty air is

hovering around 6.3%, 6.4%. i think economists are saying that that is probably the likely place it will be. maybe you will get down to the high -- if e get lucky. the consumer has now acknowledged the fact that this is where mortgage rates are going to be. they are still historically very low. this is inspiring sellers to start to put their homes on the market. we desperately need more inventory. that's been the challenge. you know, these rates have helped people back from listing their homes. it has also helped people back from buying homes. they want to see what would happen with mortgage rates. >> where is the mortgage hottest? both recently? >> it really depends. sorry you hear the melodies of new york city in the background. one of the hottest markets on the market right now is palm beach. it is really a really busy

market. people are investing. this seems to be a great place where people want to go. the challenges obviously inventory. in new york city. we are great place, because we do have ample inventory. we are seeing the market pick up here, which has been a good thing. it really depends on people circumstances. remember, the market is here to serve you. people have to decide where they want to be. where's the best place for them to call home and make the decision according to that. cannot talk to me about how important the confidence factor is. stockmarkets doing well obviously. there are talks of rate cuts. is that enough to trigger people to start listing those homes? looking to upgrade even if the mortgage rate hasn't come down yet? >> i think it is enough to get some momentum going. i do not think things will be dramatic. you will not see everyone putting their homes on the

market. change takes time. people, by virtue of lifecycle, have to sell sometimes. because they get a new job, moving to a new neighborhood, their family is growing. i think that is going to happen. i think the fact that people are acknowledging that the economy is in a stable place. wall street is very happy right now. i think people are feeling a little bit more optimistic than they were. there are some headwinds. it is an election year and that creates some uncertainty. i think we have to be patient. patience is important in this environment. the homebuyer right now knows that it is a great investment. it is something for their future, something for consumption, and something people believe in time overtime. i always say, you can't live in your stock portfolio. when you buy a home, it is something for the long-term. >> you can talk about yourself portfolio here a lot on cnbc. is there a lot of that going on? >> yeah.

the cash buyer is up about 10% from last year. there is a good amount of cash buyers that are out there right now. actually, i think a little bit of that has to do with the fact that mortgage rates have tick up . yes. that is a healthy environment right now. >> bess freeman there from brown harris stevens. the session low is pretty much down 160 on the dow, 0.4. s&p, less than that. the nasdaq down just a few basis points, essentially flatlining. so far today, up about 10% or so. that does it for "the exchange." thank you so much for watching. power lunch starts on the other side of the short break. ♪ ♪

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