housing stays hot as stocks break their losing streak. this has the fed starts to splinter and we may finally have reached peak app. we'll also talk about what's going on in the markets. look at that rally. more in a second. a huge housing headline helping us move higher, new home sales jumping by 18 last month. when you consider how badly a lot of the home builders have been doing lately, they sure could use a headline like this. >> they absolutely could. this was a big one. as soon as it came out, the reaction was that this is either, quote, unbelievable or one analyst even called it noise. everybody is pointing back to

may when we saw a similarly large jump only to see it revise dramatically down the following month. this is a squishy number. there's a very wide margin of error but it is up. to put it in perspective, however, we are still up on new home sales only two percent year-to-date. so you have to put it all into context. we are sealing at about -- we are at a 504,000 pace. normal would be about 740,000. during the boom we were up over a million. you have to keep it in perspective. the stocks did not react very well at all. they were all down on the news this morning and that's because k.b. home did not meet expectations. it failed dramatically from what the street thought. that's because they were not seeing the kind of new orders that were expected and revenue was not in line. again, it's a good number. we don't want to pour cold water on it too much but it's not quite what you might think. >> we also found out that

mortgage applications dropped but so much was refinancing. what can we gauge if anything from the state of buying a mortgage market instead of refinancing? >> one word, flat. it went down ever so slightly this past week but we're operating on the mortgage applications to buy a home, 40% below. they're just not moving at all. again that points from the demand from that mortgage dependent buyer. is it really still there as investors move out. you don't see so much inventory on the market and maybe that's why the new home sales got a boost. again, if you don't see those mortgage applications tick up, you're not going to see that cohort of the first-time home buyer who we really need in this recovery coming back. >> thank you very much. they say housing is all about location.

if that's true, there may be only one location that really matters in america. let's bring in brad hunter from metro study. the doors jim morrison famously saying the west is the best. that seems true with housing. >> then you have to break down the west further. southern california is up in terms of our numbers we're tracking housing starts house by house, lot by lot. we're seeing inland empire is extremely strong, a lot of growth in that west riverside county area, i-15 corridor, prices are going up there. >> that's a suburb of los angeles. >> yeah. >> it used to be two hours out in the desert. >> the next area is too far to drive. drive until you qualify is the old phrase. >> why is it so hot? >> cheap? >> the prizes in the core market get hot and that pushes people out into the peripheral markets

and what was considered a c market is considered a b market. >> you have to get pushed out further into prifrryes so where is it going to be next? >> that's right. some markets can grow in 360 degree circles, for example, phoenix and that's why it got overblown and overdeveloped during the boom years and why it's still cyclical today. >> what you said scares me a little bit when you said drive until you qualify because we've been here before. people are literally commuting 100 miles each way to work now. plain and simple, are we getting stupid again? >> yeah. let me put it this way. there are some builders who are underestimating the price of e lastyty of economic demand. i think what is happening is the

builders are saying we're running out of cheap lots and now we got to prepare and protect our profit margins and push home prices higher. and then once they get to the market, they say, oh, now the market is not coming because we pushed the prices too far. that's happening in certain submarkets around the country. >> and it's one more reason why the first time home buyers haven't been able to come back. if it's harder to build cheap homes you can't reel in first time home buyers. >> now you see builders address the entry level home buyer? >> which ones in particular? >> entry level and first time home buyer used to be the same thing. now an entry level new home buyer might be buying their first home. there are some builders who are addressing that entry level part of the market now. d.r. horton with express homes.

la nar. i think more and more the builders are going to do this. it's been hard to do until how because the profit margins have been so good in move-up i'm not going to mess with entry level. now they're starting to say in order to get from a million starts a year to 1.6 million or cho closer to normal we're going to have to go to the prifrry. >> let's talk a little more about k.b. homes taking a beating today after reporting earnings that fell short of wall street expectations. is it just a one off or more time tough times ahead for builders. we were seeing a moment ago, k.b. is dragging down sentiment for the whole sector. the good news, new home sales surging. >> we think that's a giant head fake. >> a head fake? >> we don't have confidence in

that number because when you look at that number, sales then translated to housing starts against cancellations, your net number is going to be a lot lower. this is kind of a fantastical data stream which can be very volatile. we're still looking for a million housing starts this year. what we're really seeing in terms of stocks and operating performance, you had great numbers last week out of lanar. you saw a miss fire with k.b. you had construction delays which they highlighted this morning on their conference call. it's probably going to move numbers lower. they have good geographies. they definitely hit an air pocket today. it looks like they're going to try to repair it by the fourth quarter. >> we focus on the home sales number and get obsessive about these numbers. it's kind of our job in a way but i care more about what a company is making than how many

of something they sold. if they sold a lot of something, it may lead me to believe that they are discounting heavily. >> i feel you. >> profit margin is king. >> gross margin drives the day and wins the war. best in class, lanar. >> even with them going down stream? >> they have the best land position in the entire industry. >> and they have some of those cheap lots left, about 60% of their portfolio. >> we like california, nevada, arizona, especially texas, strength in florida, north carolina. the golden horseshoe. >> hey, man, where are we going for cocktails tonight, see you at the golden horrseshoe. >> what is mom and pop doing? >> the first time home buyer is

making a gradual reappearance. we're not calling for a great recovery. it's going to be gradual and choppy like the action we've seen but 2015 to get that incremental volume you're going to see the builders lower price. brad, i agree with you point, the huge gains in average selling prices that we've seen in the last three years are going to flat line. better values from the entry level buyer. >> any stock to absolutely avoid, bob? >> not yet. i agree -- >> toss out of the golden horseshoe. >> we're less excited right now than we were a couple months ago. >> that's fancy wall street speak, less excited. >> multiples are going to be under pressure if rates rise going forward and that's something that will affect the group. >> something to watch. thank you very much bob and brad. >> i grew up in the golden horseshoe. still ahead.

stocks solidly higher today and we look ahead to next year. plus why blackberry thinks it's hip to be square and why some apple users are hell bent on getting a new phone. >> plus walmart getting into the banking game. is it good or the consumer or riddled with red flags, when "street signs" returns. that's when expertise happens. mfs. because there is no expertise without collaboration.

whenwork with equity experts who work with regional experts that's when expertise happens. mfs. because there is no expertise without collaboration.

bed, bath and beyond is the best performer in the s&p 500

right now. the s&p 500 is on track to avoid its first four-day losing streak of the year. >> well, there's been a lot of fed speak this week and steve leesman has been following it all. you're actually picking up on one theme that's emerging along the lines of a great divide. >> a little more division. we have a little graphic here we want to show you in what we call the wall here. the first and most obvious is richard fisher. he, of course, joined charles platser over there so he moved a little to his left. i don't know if that's actually going to work. there we go. you see that movement there, mandy? >> yes. >> were you excited about that? >> real excited by that. >> loretta meser just spoke. she wants that considerable time period changed but she hasn't moved over to the descenters yet.

we just had charles evans, the chicago fed president. he says the fed could allow higher inflation. he's one of the doves out there above the two percent target. he said be very, very careful. the biggest risk out there is that we start too early. he named the united states in 1937, japan and europe as examples of countries -- >> he's aggressively dovish. >> aggressive. the minneapolis fed president said i don't see inflation for two or more years. even the vice chair of the fed is starting to talk about the effect of the dollar. there's a lot of things out there right now in terms of commodity prices coming down. the next reads on inflation potentially could be less inflationa inflationary. that's giving a little moxie to the doves to say let's be real careful here. >> the financials and insurance stocks are starting to move as

if parts of the markets think higher rates are coming, fed be darned or not. >> i thought that was a pretty good bet anyway but it's come down down. when you look at that board who is really in control of the federal reserve? it's dudley and evans along with janet yellen, the more dovish are the ones who are controlling the policy statement right now. >> fisher is out next year anyway. >> platser. >> fisher is not voting. >> you're right. >> right now i'm not changing my call for 2015 but the ideas of a spring 2015 liftoff seems less likely. >> hawks are getting hawkier and doves getting dovier. >> we're going to get a test in janet yellen to keep this group together.

>> steve, thank you very much. it was a good wall. seems hard to believe but there are just 14 weeks left in the year so it's time to start planning for 2015 and beyond. let's get some advice of how to set up your investments. chad, starting with you, it's been an average year, what are you seeing next year? >> i think the s&p 500 can go up another five percent by the end of the year or q-1 of 2015. after that the fed starts to be more hawkish and i believe it's going to happen in perhaps probably the summer months, they're going to go gradual on the federal reserve raising rates. the market should perhaps trade in a raining between 2100 and 1900 on the s&p. >> what are your forecasts, jim, and why is sentiment done in

flash yellow? >> our year end target is 2060 and that's predicated on $117.50. we were below consensus for 2014 due to europe, china and the strong dollar. as we look into next year, we really think the earnings will continue to drive the market. we do think it's very possible that the economy in the united states really starts to catch and perhaps even elevates to a three and a half percent type of growth range. i agree with the other guests that the fed will be a headwind blowing against the market, something we haven't had to contend with for a long time. >> to what degree? how much will it hold it back? >> we think perhaps the interest rate sensitive sectors would be the most influenced. probably a stronger dollar is a theme that's likely to persist

to 2015. we can look for maybe an 11% type of year next year, 2015, after a pretty solid year this year. but it's going to be, again, like this year, two steps forward, one step back. again, a lot of focus on the federal reserve and importantly, europe and china, as we sense those are fundamental drivers that are starting to weaken for the u.s. markets. >> a lot of our viewers are not day traders. they may be adjusting their 401(k)s a little bit on the side, on the margins. five years from now, will stocks prove to be a good investment from the level we are at right now? >> yeah, sure. we believe that you can -- >> don't say sure because we've had periods where they stunk. >> we're forecasting between a five and seven percent total return on u.s. equities over the course of five years but you're going to run into headwinds. we have had a big run on the

market and we haven't had a ten percent pull back in the market in over 1,000 days. valuations not exceedingly cheap at this point but we believe that growth, like your guest is saying, is going to run on the u.s. economy at three to three and a half percent. you're going to see a struggle within the euro zone which is a 17.5 trillion dollar economy. that growth rate is going to be below one percent and the emerging markets you're start tog see deceleration of growth there. currently we're overweight equities but becoming a little more cautious when we're forecasting out for 2015 because of these headwinds. >> jim mentioned the strong dollar a amount ago. it's a red letter day because i think it's at a four-year high. do you see it as being a

headwind or tailwind? can stocks and the strong dollar rise at the same time? >> that's a great question and it depends on how the u.s. economy performs. if the u.s. dollar continues to strengthen at a current rate like it has been and this is because the federal reserve is becoming a little more hawkish in 2015 and also the other global central banks are becoming much more dovish, you could start to see earnings revisions coming down within s&p 500 companies, revenues will take a hit, the large multi-nationals and it will become a little more of a struggle. that could become a problem. we need to see global growth accelerate in 2015, 16 and 17. that's one thing that we believe will eventually happen but you're going to have to go through this transitory period. >> transitioning to today's hard money. sugar, one of the only positive

commodities today, up 2.6% and shooting up from a four year low earlier this month. now sugar demands may be less, at least from the soda makers. pepsi and dr. pepper have planned to cut the calories you consume by pushing you toward bottled water and drinks in smaller sizes. richard branson, he is smart, he is incredibly successful, but did he just come up with the worst single idea ever? plus we're talking bendy phones, square screens and social snug glinsnuggling. "street signs" is back right after this.

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welcome back to "street signs." we've got an update on the situation over apple's operating system, the ios 8.10.updates. according to multiple reports we can tell you that apple has apparently pulled the update for ios 8.1.0. if you are an iphone or ipad user and you check for an

update, you will see that 8.0 is the current update. it appears as though apple has seen that there's a possible problem with it's update and has pulled it. anybody who has updated to 8.0 is current with the most up to date version of this system. we've reached out to apple for comment, no word as of yet. we'll bring you details as they become available. for right now, brian and mandy, it appears if you updated to ios 8.0, you have the most up to date operating system. >> i swear i'm going back to a flip phone. >> or a blackberry. >> that's right. did you know that blackberry is often criticized for being square? now they hope that plays into their hands. they're hoping that a square phone will help save their brand. john, what's your take on the

apparent problems with the 8.01-706. people are angry on twitter. >> of course. people here at the exchange not too happy about it either. this is causing a problem for a number of people. hopefully apple gets it worked out at the same time that they had hoped to fix the health kit issue. there was a worry that health kit was part of this push and apparently still having trouble. >> let's talk about the blackberry and passport phone. i thought it was sad that they have these big launch events but they didn't bother with one here in the u.s. i can only assume because maybe there wasn't enough excitement or demand? >> i don't know. i'm not into their reasons why. but they did meet with a number of journalists here. here's the passport. here's a passport. fits right over it. that's why they call it the passport. >> not just a funny name, okay.

>> i've had this for a couple of weeks now, very usable, very different. you can scroll using the keyboard. it's touch sensitive for keys and navigation. blackberry has gone different with this phone but don't think that blackberry is taking its future on this phone design. they are very much taking their future on security and software. this phone is just meant to sell that vision a little bit. it gets them some attention as well, shows that they're not just following the pack. as far as software goes on this, you've got the amazon app store which gives you access to lots of apps on android 4.4. there's a fast qualcomm processor in here, so it runs them quickly. i didn't have any trouble when i was testing it out. also there's something called blackberry blend which allows you to access everything that's on your phone in terms of contacts, calendar, pictures, text messages from a phone or tablet computer. interesting strategy here.

it's secure in a way because this stuff isn't stored on the cloud. you're making a direct connection to your phone from a computer or tablet that can be half a world away. >> mandy, you're the style maven. what do you think about that phone? at least they're trying not to copy. >> i think it's great. obviously with the iphone 6 we're trying to get on board the android bigger screen band wagon. it's sort of like a copy cat move in terms of style. >> i disagree with that because the apple newton was bigger than any android device and that was 15 years ago. >> going back a very long time. i thought steve jobs wasn't in for those bigger screens. but i think it's good that they're trying to do something different. being a little more high end, i don't really understand that because the high end market is so saturated by various other models. i think maybe they should go for a different zone but i'm not the one making these decisions.

>> it's square, i like it. john, quickly, we are hearing complaints about the new iphone 6. apparently all of america is angry that it's bendable but not in a good way. >> you are also bendable, brian, if enough pressure is applied and the question for a lot of people is going to be, how bendable is the 6 plus under normal use. there's a video of somebody straining to bend his iphone 6 plus and he can. i think the issue is if you're wearing it in our front pocket or even your back pocket, will this bend. probably if your jeans are tight enough it will. the lesson i think here is that the 6 plus a little more like a tablet than a phone. you can't carry it in quite the same ways that you could a smaller phone. also apple making this thinner, hasn't reinforced it quite as much. we see these problems with apple redesig redesigns. there's always a criticism. there was antenna-gate.

something else when the 5 came out. normally they don't affect sales. overall maybe people who might have gotten the 6 plus will get a 6 if they have tight jeans. >> maybe give them an awesome idea for the iphone 7 to properly make it bendable because you can sit down and it will fit your body perfectly. >> used to be strong men were like black and white striped things with a mustache and rip a phone book in half. now youtube will be flooded with people trying to bend an iphone. >> more expensive though. a scary story about our crumbling infrastructure and why this could end in a big push for pipe lines. that story when "street signs" returns. they're custom made trains.

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>> we're talking about buffalo wild wings. miller tei beck hboosting their target from 170 to 160. that's 25% more upside to the current price. lower food costs with lower sales could help. >> rio tinto one of the biggest retailers in the world. >> say it like you're from australia. >> i am from australia and i am proud. i don't know whether it's an australian company. >> morgan stanley raised their price. analysts say they're getting back to basics and they believe the dividend could go up. >> gold corps is a canadian based gold miner. we're going around the commonwealth. >> not helping. stocks down but credit sweeps upgrading and they bumped it up

43. >> moving along, this is our under the radar name of the day. it's barry plastics. evansville indiana maker. >> if nearly $3 billion market cap company. goldman sachs commenting to add to their conviction list. don't see them commenting on $3 billion market cap that often. they raised their target to 32. just under 29 bucks. >> question for you. have you ever fantasized about having a boss that says take time off, as much as you want. virgin group billionaire richard branson is that boss and believes employees should be able to take off whenever they feel like it, no questions asked. the idea behind it is that it

will help morale and improve your creativity and productivity at work. not something if i was a boss i would want my employees to do. i'm just going to say it, absolutely not. >> no. well, i assume in most people's jobs they have responsibilities and they need to plan. where is jones? jones is the pilot. he decided to take the day off. not ideal. i have a better idea, i think. i got this idea from goldman sachs. did you know that goldman sachs which gets no credit for anything forces most if not all of their employees to take a two week vacation. >> excellent idea. >> in america we don't take ahot of time off, most people don't use their time, goldman sachs says you must take two weeks off and you're in trouble if you don't. >> more importantly, take the two weeks off but are you allowed to not have to check your e-mail? >> i don't know. but it would remove that

uncomfortable feeling of asking for the time off. great idea. you must take two weeks in a row off. you have to, everybody does. it alleviates that pressure of feeling awkward. >> branson's idea relies way too much on his employees being equally conscientious. >> everybody is a hard worker and intelligent and handsome. if we do not fix our aging infrastructure, we could have more scenes like this. not like that. that's richard branson. like that. why what's underground might be more dangerous than you think. >> and walmart offering checking accounts. will this take away from local banks? stay with us. a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions,

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looking at the markets you've got a 148-point gain for the dow. i believe if the dow does manage to close in triple digits to the positive today it will have a triple digit move for the third straight day. something we have not had for some time. there you go. the s&p 500 as well is looking pretty good. up by seven-tenths. what was that, kevin?

producer, best day in five weeks, voice of god says that. >> apparently i'm an idiot. >> complete silence, crickets for two seconds. >> i was giving props to goldman sachs for the mandatory two weeks off. about six thousand people tweeted me saying you fool, all bankers are required to take two weeks off so you can't be running a fraud. it's hard to perpetrate a fraud if for two weeks you're not there. we had about ten seconds to chit-chat but here's the thing, i don't care why, it's still a cool policy. >> it's good to be able to take two weeks without feeling guilty about it. i found a silver lining in you being a so-called idiot.

if you got 6,000 tweets, that means 6,000 people are listening to our show. >> that's sullivan math, six people. you may have a pipeline near your home but did you know it could be as much as 100 years old or older? tom costello joining us with more on that story. >> we're talking about natural gas pipe lines. an nbc news investigation focusing on the aging network of these underground pipes that carry natural gas to millions of home. the first pipes were laid in the 1880s and several times a week they begin leaking sometimes with tragic results. over 135 people killed over the last ten years in gas line explosions. it took but an instant for a neighborhood in san bruno, california to go up in flames.

8 people killed when a 50-year-old leaking underground gas line sploided. for sue, the loss was unimaginable. her teenage son, husband and mother-in-law died when her house was leveled. >> we had a bright future ahead of us, and now in a second it was taken away from us. it was horrible. >> reporter: a disaster that's been repeated across the country. in new york city last march, 8 dead. in brentwood, long island, a toddler killed, 17 injured. now a usa today nbc news investigation has found that every day in america a gas leak injures or kills someone. one big problem, 88,000 miles of cast iron and steel piping underground, much of it 100 years or older. >> those older gas pipes, particularly the cast iron are more prone to crack and leak

gas. >> reporter: the northeast and midwest have the most. here in washington d.c., buried beneath my feet, 418 miles of cast iron piping. but digging up city streets and replacing those lines isn't cheap, two to three million dollars per mile. if you live in one of those cities that have hundreds of miles of cast iron pipe, that's a failure waiting to happen regulators are pushing lines being replaced with pvc piping but it could take years. >> there's always an effort to make sure that the pipe is taken care of when it needs to be taken care of. >> reporter: with each passing day the risk from corroding and leaking gas lines only grows. the industry has replaced 27,000 miles of piping over the past ten years but that leaves 88,000 miles of cast iron and steel piping and a third of the

transmission lines in this country were laid before 1960. >> tom costello, it's a pleasure. scary stuff. walmart once again trying to break into banking. will it finally win? got a big interview coming up. and the dow having its best day in more than five weeks. we're all over this market when "street signs" returns. three stocks right now to the down side. hi! can i help you? i'm looking for a phone plan. it has to be a great one, and i don't compromise. ok, how about 10 gigs of data to share, unlimited talk and text, and you can choose from 2 to 10 lines. wow, sounds like a great deal. so i'm getting exactly what i want, then? appears so. now, um, i'm not too sure what to do with my arms right now 'cause this is when i usually start throwing things. oh, that's terrifying at&t's best-ever pricing. 2-10 lines, 10 gigs of truly shareable data, unlimited talk and text, starting at $130 a month.

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that corporate trial by fire when every slacker gets his due. and yet, there's someone around the office who hasn't had a performance review in a while. someone whose poor performance is slowing down the entire organization. i'm looking at you phone company dsl. go to comcastbusiness.com/ checkyourspeed.

if we can't offer faster speeds or save you money we'll give you $150. comcast business built for business. walmart wants into banking. it's making a deal to open low cost checking accounts. daniel, sadly, i've been doing this so long that i remember back in 2005 the application to become a bank, 1998 you had broad street financial. you have not had success getting into the banking industry despite repeated efforts. why is this time different ? >> thanks again for having us on the show and thanks, mandy, as well. to be clear, green dot is the bank and we're bringing affordable, every day financial services to our stores so that customers have better access as

well as better opposites in the marketplace that they can conveniently find at our stores. >> the thing is there's already competition out there, right, steve? i believe low cost and even no cost accounts have been offered b by a number of banks for years if not decades. why would people want this service as opposed to staying with the community bank they're already with? >> we are a community bank ourselves at green dot bank. they're a vital part of their local communities and this does not interfere with that at all. this is a really cool, modern checking account that's made to be used on your mobile phone or online, but if you like instagram or facebook news feed or if you go to yelp, you will love go bank. it's a more modern can't designed for the on the go consumer. in terms of fees, there are very few fees. i think you've read research

where the average fee disclosures on a checking account or 30 pages or something. on our bank, you can see all the fees on the back of your smartphone. they can see what they're going to pay nsf fees if you bounce a check and 42,000 atms and twice as many as any national bank and a lot of value and cool tech nlg. >> just to pick up on no minimum account balance and do i understand correctly, steve, if you don't have a minimum of $500 a month direct deposits in the account charged $8.95 a month in fees? >> yeah. the only fee charged is do not have a direct deposit of at least $500 a month. that's low hurdle in banking. and then you get a fee and even if you never do that and pay the fee, every month, it is still by far the best value in checking we believe. >> very quickly.

we will have ken fine on after this. and he had some tough words for this. we don't want to jam up the interview. it would be confusing but saying this is nothing more than a slick marketing campaign. your response to ken up next and then respond to you? >> i don't know. i'd have to hear what cam says. he is a great guy and we have respect for the icba. i'm not sure what that means, a slick scheme. it's a great concept to americans who may not have a checking account and it is what it is. >> from walmart, we are about bringing choice to the marketplace. we support a tremendous amount of independent and community banks inside the stores with branching locations leased to them and every day financial services to have if you will a shelf of every day money services from which customers choose what's right for them. >> daniel, also, walmart has competition of dollar stores and other lower cost supermarkets and retailers out there so by

having this feature of go bank, to what degree do you expect to retain customers or bring back the customer that is have gone elsewhere? >> well, we're always excited to bring the right and relevant assortment into the stores that make shopping walmart convenient. and every day money services we have seen over 13 years is one of those categories where customers find convenience by coming to a one stop shop and then conducting not only their every day services for money but also their shopping needs whether that's a stock-up or fill-in trip. we are focused on making sure that we bring that one stop shop to life for our customers and we see that these financial services and particularly recent years bringing better and more affordable access to checking accounts being one of those areas to make sure to serve customers with. >> i don't want to put you on the spot here but i'll bring in cam fine now you can he can say it for himself and if you feel like bolting or have other time

commitments, i understand, as well. i don't want to put you on spot. it is not our style. cam fine, welcome. did i misquote you there? >> no. i appreciate what steve said about the icba. community banks have offered low and no charge checking account products for decades. that's what they do. they serve local markets. they serve communities. when what's new here is distribution channel. green dot is a community bank and using the walmart stores as a distribution channel for the low-cost checking account. >> would you like to respond? >> no. i think he's right. but you have to understand cam and i are on the same team. we love community banks. almost like the family farm. it's vital part of america's rich history an banking. more relevant now than the old days. >> yes. >> this is a product if you have

a great community banking account keep it and enjoy it forever. your local manager knows you like nobody else can. there's no disagreement on that point. >> i would add same way. we have over 900 full service banking partners in the stores and support our communities that we serve inside walmart in that choice model just as much as we also have offerings with other providers. >> cam, if this helps get the unbanked into banking, whatever the vessel, would you be on board with that? isn't walmart, i understand a threat to the icba members, couldn't they bring in so many hundreds of thousands of new people that have never banked before? >> well, you know, you know, brian, community banks have served people that are so-called underbanked again for decades. that's what they do. they're relationship lenders and they serve their local communities. walmart is another channel. but community banks aren't

afraid of competition from walmart or any other source. we're small, local lenders. we compete against everybody. the guy operating out of the trunk of the car is generally larger than the community bank so competition is not the issue here. it is low cost, no cost checking accounts, something that is a staple in community banks. >> cam, daniel and steve, thank you very much for joining us. >> you bet. >> really interesting. thank you. speaking of banks, seeing a mini rally of some of the financial stocks lately. regional banks have been a part of that rebrown. morgan brennan joins us with more. hey, morgan. >> hey. blackrock's analyst says regional banks are the purest play on rising interest rates and see the relationship between the regionals and the broader financial sector in this month to date chart and looking at that spike right there, that is right around the fmoc meeting so one regional that is rebounding

is suntrust. that is up about 1.5% over a month and will benefit from the housing recovery in places like florida. pnc financial up over 2% over the last month and m&t bank is up. they expect rates to increase earnings for the regionals and not subject to many of the regulatory changes that pressured the bigger universal peers but regionals do face two headwinds. pressure of new loans hurts loan yields and there's the possibility of deposit outflows as rates rise and folks start to put more of their money to work elsewhere. in light of that, here are two more regional banks that analysts like. terry mcavoi says comerica is sensitive to higher rates and morni

morningstar like business model so definitely names to check out. mandy, back to you. >> have you very much, my dear. up next, the jersey shore's "the situation" is living up to his name. who's that? >> the situation? this is the situation. come on! >> what was that? >> pulls up the top and got the ripples going on. >> the ripples? we're back after this.

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shore" finds himself in a sticky situation. mike was indicted of filing false tax returns, not paying full taxes on $8.9 million over several years and please ds not guilty today. >> all right, everybody. thank you so much for watching today. >> closing bell coming up right now. welcome to "the closing bell," everybody. i'm kelly evans. >> i'm bill griffith. remember the talk yesterday about the death cross and the russell 2000? never mind. pretty good rally right now. for those who thought we were on the brink of a correction in the markets, apparently the fears alleviated at least for today. the industrial average up almost 1% right now. a gain of 157 points. we're right about at the highs of the day right now, as a matter of fact. >> some scowling among