it's easy to tell. >> dr. j >> charge point. i bought the april 16th calls with the stock trading right here at about 1580 just minutes ago. >> all right that does it for us here on the halftime report. fast money 5:00. meantime "the exchange" begins right now. >> thank you hi, everybody. i'm kelly evans. here's what's ahead this hour on "the exchange. stocks are rising with 1% gains across the board the nasdaq is leading the way even as yields surge higher. the 30-year popping 3% the ten-year getting close to that level is the rally in stocks just a head fake or not we have both sides of that debate plus masks now optional on planes but this win for the airline comes as yet another one has to trim its peak season flight schedule and as covid cases have

ticked up. and we are joined by lockheed martin about sending weapons to ukraine. we begin with stocks and dom has the key numbers. >> your eyes do not deceive you. it is a pretty zeebt rally right now. it wasn't that way earlier it was more mixed around the opening bell we are toward the session highs. the dow industrials about 400 points to the up side. up 1%. 34,812 the last trade. the s&p 500, 4447. one and a quarter percent gain 242 points to the up side. the nasdaq has reversed course a little bit, maybe a bit of that rotation coming back 1.8% gains there the nasdaq leading the way technology and come services a big focus there. if you want to look at the earnings related stories today, take a look at the top two near. johnson & johnson up 3%. travelers down by 5.5% johnson & johnson one of the

bigger contributors to the gains today. travelers the biggest detractor. you're getting roughly 40 point gains. meanwhile travelers takes off about 60 points with the 5% drop al burton and has bro coming in with earnings reports now decently moved here. halliburton coming off near-term highs. watch that johnson & johnson and travelers up their dividend payments interest rate story is still front and center there's still a lot of focus among not just the institutional side of the market, but also retail traders and investors in what's going to happen with rates. as kelly mentioned, the ten-year above 2.9 %. let's go fus -- focus on the 30-yearlong bond at one point we were over 3. this is the highest level going back to april of 2019. that's going to be key to watch. it's not necessarily that the 30-yearlong bond tracks to mortgage rates, but we want to

focus on the notion that the long term side of things is ticking higher despite the fact that the imf cut the global growth forecast. there are different things at play but interest rates are heading higher >> thank you very much stocks are surprisably unfazed by suggestions by the suggestions that the fed might hike by 75 basis points. saying that possibility already priced in. one of my next guests does not believe that's the case and is revising stock targets lower for the year joi welcome to both of you ava, i think you're a little more cautious. explain where you see stocks headed from here >> yes i think we're going to have a choppy rest of the year, and i think -- i think they will start reassessing the estimates for the second half. of the first half has already

been reassessed down, but we will see the second half of the year maybe the beginning of 2023 also getting reassessed. and i think that there's not a lot of surprise here with the fed's comment. the surprise to me is the rates are not there yet. are not there yet, because if you see inflation running between 8% to 10% and the rates on the long-term end haven't adjusted to that, the short-term we have a lot of activity, but when the five-year and the 30-year, the yield curve is about flat what we think is going to happen is we'll see another adjustment of the yield curve, another vertical shift up that will better illustrate and reflect the reality with inflation not since showing signs of slowing down any time soon >> so you're looking at places like health care, basic places where people can't really pull back that much they have to keep spending there's a couple you like. mark, what about you big picture, how do you feel about the fed's inflation

fighting here? the way that rates are behaving, the fact that stocks at least today are holding up pretty well >> thanks for having me on again. listen, i think at the end of the day, we've got to look at what has to happen the fed has to act and it may have to act aggressively according to what bullard is saying. we should totally expect that there could be 50 basis points, 75 basis point hikes, maybe not this time but next time. i think ukraine is giving them cover to slow things down, but the fact that 8.5 % inflation, a 40-year high, they've got to address that so the issue is for my clients is what do we do with that knowledge? we got to go on the financials they're the only sector that benefits heavily by rising rates. and so you're seeing that at 75 basis points comes to pass as bullard suggested, that the financials are going to be the biggest beneficiary, and the

valuation levels are great they are a sector that hasn't had these huge run yu7s like tech i think financials based on the valuation is a good place to be. >> i see energy, you like here as well. thinner ji, that's the shorthand they call it in the market mark. h are you concerned the trades are crowded? if not, why not? >> i don't think the energy trade is crowded guess what one of the largest countries in the world owed billions of people -- on lockdown right now. once that comes out, this is going to create a tremendous amount of demand, and so energy has to go up if people are spending it. the lockdowns are keeping energy prices at bay for the time being. china is not staying locked down forever. >> and maybe this is a place where you guys differ the most, ava. i sensed your enthusiasm for financials and energy is much smaller and maybe you would even say it's a place to avoid right now. >> well, energy is pricing

elastic. we think a lot of it has been priced in already. there's not a lot of movement from here we believe it's a good place to be but not the best health care to us is the most pricing elastic of all sectors you always need health care. and you're not concerned about the prices and when it comes to financials, what concerns me is we saw financial companies and institutions coming up lately. we saw bank of america and jpmorgan both of them are struggling with rising labor costs and adoption of russian trade. they're struggling with the fin techs taking business from them, and then you have the mortgage levels rising nature that business is going away j jpmorgan has an increase on costs from last year of -- on a percentage basis of 1 .3 one out of three there's a huge increase, and then bank of america also has a 25% increase from last year's

sgna cost. we see sgna costs rising significantly. to me that's a big concern >> 33% and 25% increases are massive. and it has been a sore point mr. smith, i'll give you the last word. >> yeah. i'd say look at history. if rates are going to continue to go up, financials make more money. all the calls you're referring to, you're looking in the rear-view mirror and not ahead of you if you're looking ahead you want to go with the banks >> i agree with that, and financial institutions are usually able to pass along rate increases, costs associated with rate increases to their customers, but to me what's going on now with inflation and how the labor costs, skyrocketing affects them is really concerning. however, i want to mention that we might see layoffs we saw jpmorgan getting hit hard

with their profits so there might be layoffs, because of that, and that will be a mitigating effect on inflation and how that affects them >> yeah. and in some ways you're saying kind of the green light for financials comes if there's layoffs which is turning things on it head for sure. we'll leave it there that was enlightening. i loved it thank you both the markets, rates and so much more quick programming note raphael bostic will be on "closing bell" at 3:00 p.m. eastern time you don't want to miss it. meantime the mask mandate on planes, trains and public transport is no more a federal judge in florida ruling the cdc overstepped the authority and failed to adequately explain the reasons for the mandate. here's a video of passengers on one fight on delta in atlanta applauding the news. >> it mays masks now optional for employees, customers --

[ applause ] >> phil is standing bywith the latest from the airlines meg has more on the fallout from the cdc here, especially as covid cases rise once again. phil, let's start with you >> kelly, almost every airline, in fact, every airline i know of has said look, we are not going to enforce a mask mandate any longer so it's optional take a look at what we're talking about here this has been a rough 14 months for all of these airlines. the tsa has dropped its enforcement of the mask mandate as well. and then by the way, this is for mass transit in the united states you're also looking at a number of areas, amtrak is also impacted by this a number of the regional transportation authorities have also said look, we're going to be dropping the mask requirement. and in practice, what we've seen from video at various airports around the country today is that most people have taken off the mask not everybody. remember, it's optional. there are some people who have decided i'm not comfortable with

the environment when it comes to covid-19 we're going to keep the mask on. one area where i think we're going to notice an impact, unruly passengers. and we should see, should see better behavior in the air it has gotten a little bit better according to the faa. but it's still not great in terms of unruly passenger cases this year, more than 1100. the vast majority of these involve somebody being asked to put on a mask or they weren't wearing their mask they pop off then you know what happens next. the incident rate, however, it is declining. for the airlines, they have been lobbying for this for some time. from their perspective, this is great news they believe that if you can make an environment where there's less friction, less concern when you're flying, and less irritability with passengers, it's a better environment. what do the airlines think about this over the next couple months how much will it impact business united reports the earnings after the bell tomorrow. we'll get some sense about whether or not they think this

might impact future bookings i'm not sure it's going to make a huge difference, but it will make a more enjoyable flying experience >> the ceo scott kirby will be on fast money with more on the company's response tomorrow at 5:00 p.m. eastern time phil, let me ask you about spirit which today announced it's cutting spring and summer flights to head off disruptions. this is a stock at $25 it's 52 -week high was 28 38 and the all-time high was at 70. and this is what a takeover fight. >> right well, look, they're cutting their schedule, because if you look at their schedule now, compared to prepandemic, they've added more flights so they have been very aggressive all of the lower cost airlines have been very aggressive about adding back flights pause there has been so much demand out there. at the same time, staffing is just not there they're making the prudent decision given the fact that we've seen weather complications, especially down in florida where they have a big

footprint, they decided to pull back the schedule a little bit so we don't run into a situation where we're over extended. that would be the worst case scenario they want to avoid that happening. >> absolutely. phil, thank you. we turn to meg now where does this leave the cdc especially as covid cases have been rising once again meg with the latest. >> well, there's a broad question for the cdc, and what the biden administration does here there are concerns expressed by some that if the administration appeals this and really takes it up through higher courts that you could see sort of broader challenges to cdc's public health authorities even beyond the current situation we're in and we are in a situation where the cdc, of course, had just said we should keep that mandate in place on planes, trains and other forms of transportation at least until early may, because we are in a situation of uncertainty right now. with a new variant, that's driving at least cases higher. so we are seeing cases up more than 20% over the past two weeks across the united states

now to about 33,000 per day. but, of course, when you look across the u.s., that's not even there are bigger increases in some places in the country, particularly in the northeast. hospitalizations are near pandemic lows right now. deaths have also come down they are lagging indicators. hospitalizations are rising in some parts of the country. you can see here the states in red, mostly in the northeast again, are where you are starting to see increases in covid hospitalizations as well that could be driven by a new variant. we've been hearing about ba-2. this is the newer form of omicron that's more contagious than the previous form there's a new version called ba.12.1. it looks like it might be sticking around. it's gaining ground on ba 2. you can see it in the blue 19% nationally of the cases that cdc is sequencing. and really, more predominant in the new york area. so the question right now is just what are we going to see

going forward in terms of cases, severe disease that's the big question. you'll see that some places like new york's mta are keeping a mask mandate in place. philly reinstating the mask mandate. >> what about the effectiveness of the vaccines as we watch china and its response to the outbreak there we look at the u.s. and try to figure out what portion of this has to do with literally having different vaccines, different vaccination rates, being exposed to different versionings of covid, including the one you mentioned, and older people here have been getting their boosters younger kids still can't get the shot but we wonder if the shot would'ven be effective what's the latest we know? >> we know the vaccines work really well, particularly if you're boosted now there's the recommendation for certain groups, vulnerable groups and older people to consider a booster if it makes sense for them

the u.s. vaccines have held up better than the chinese vaccines we need to see data against this even more emerging version of omicron to see how itten looks we are seeing good protection against severe disease even against kids where it looks like the protection -- the severe protection looks strong. parents of kids under five waiting for more data from pfizer and word from the fda on moderna's application for that group to potentially get protected. >> thanks, meg coming up, lockheed martin the shares up 30%. they're lower today. we'll speak exclusively with the chairman and ceo of the country's top weapons maker. plus the return of earnings exchange we have the action, story and trade on three names about the report including netflix it's still down 50% from its highs. we'll tell you what wall street will be watching in these results.

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the war in ukraine reigniting defense spend globally which in turn the pushing the defense stocks higher shares of lockheed martin up 30% this year. general dynamics up 17%.

raytheon adding more than 20%. lockheed reported an earnings beat but revenue miss today. shares initially popped. trying to hold onto gains. joining us is the chairman and ceo of lockheed martin with morgan >> jim, welcome to "the exchange." thanks for being with us today >> sure. good afternoon >> it was a mixed quarter. supply chain challenges have been in focus now for a number of quarters. and not just at lockheed martin but across the industry in general. is it safe to say given the fact that you're maintaining a full-year guidance that the worst is now over? >> yes that's right so we had a solid start to the first quarter of 2022 financially. we actually had margins higher than expected and cash flow higher than expected revenue's a little light because of the covid impacts that you referred to there. and what really is going on both

in our supplier's factories and in our own is starting with the suppliers, you know, they get cases either on or off the job and have to quarantine people from that plant or office or that engineering facility. work doesn't get done. components do not get then shipped to lockheed martin where we have our plants and factories and offices where we would then assemble the components and parts. and above all of that is -- unlike many industries our industry typically bills and receives revenue on a progress methodology. in other words, t a payments periodically on the way to having a completed product not just when you complete the product and deliver it so with those progress type payments, if you don't get the components in or you can't install them because your people aren't in the factory, that reduces the revenue. it's a period issue here for us where we think, again, we can

make it up by the end of the year here and hold our guidance. >> speaking to that guidance, as your cfo told me, the impact of the war in ukraine is not factored into those numbers, and we've seen weapons systems like the javelin missile being shipped to ukraine to you expect to see incremental sales and would you expect to see that demand materialize this year, if so, where >> well, the stocks that are being depleted both in the u.s. army and among our allies are eventually going to have to be refilled, of course. and based on the threats that have emerged out of the ukraine conflict, unfortunately, we think that overall demand for defensive weapons like javelin and impact three are going to increase broadly over time those revenue effects, again, will be in a longer cycle because even if we were to get orders in this year, we've got to get our supply chain ramped up we've got to add capacity which

we're already investing to do, and then the deliveries happen 18 months down the road. there should be some up lift, but we don't necessarily have it wired into our guidance for 2022 >> a matter of how quickly production can ramp. the world has become a more dangerous place in recent months how would you assess the geo political landscape, especially since defense spending is globally poised to move more meaningfully higher? >> i think in a nutshell, unfortunately the world has changed. with the invasion of ukraine by russia, it's been the first major global power invasion of a neighboring country to gain territory. and we haven't had a security threat of that nature, especially in europe, north america, or most of asia, involving a great power for many, many decades

and so this is an unfortunate game-changing event. it's highlighting the fact that the world is not a secure place. it's insecure and potentially getting worse. and, therefore, the importance of deterrence which i feel like lockheed martin's product really is deterrence, the value of deterrence to society and to the free market economies of the world is as high as it's been since the middle of the 20th century, frankly, and, therefore, the kinds of capabilities that our company and our cohort companies have in aerospace and defense are going to get more important over time and stay that way for a while. so we feel that the way to really address this, to raise deterrence more quickly than you can otherwise do is to really accelerate the adoption of digital 21st century technologies into the defense enterprise to make sure our defense deterrent against war is as strong as it can be as fast as it can get. >> it's something i know you're

p passionate about finally, i have to ask you about f-35 big focus for investors. it comprises a quarter of lockheed's overall revenue they are requesting fewer of the stealthy fighter jets on the proposal on the other more international allies coming to the table to potentially buy the jet whether it's a germany or finland or potentially canada what does this mean for production, and what does it mean for pricing of the f-35 >> our goal at lockheed martin, and i've discussed this directly with senior government officials as well. is to maintain a steady production rate, because that's the most efficient way for us to deliver aircraft to our allies and to the united states in an sketive at least cost. we settled on a production rate per year of about 156 aircraft over the next few years. we're moving right toward that in 2022. we will be able to achieve it in

2023 and beyond. and we've got a number of ways to ensure even with potentially a slightly smaller u.s. buy, that between unfunded priority lists from our own services, the marines, navy, and air force have all asked for more aircraft in the budget, plus that increase in international demand that you cited, that we're going to be able to maintain that 156 over the next number of years. but we know we need to do a little bit of work to get there with our allies and with the department of defense. we're confident we'll get to keep the production rate and make the most efficient outcome for the customer base. >> jim, we appreciate your time today for this exclusive interview. thanks for joining us. the chairman and ceo and president of lockheed martin >> morgan, thank you for bringing that to us. jim, our thanks again. a news alert moments ago the white house said the administration might still

appeal yesterday's court ruling on public transportation mask mandates white house also still urging people to follow the cdc's advice on planes there's a quick look across the airline space. united up 4% american up almost 6%. still ahead, the housing market defying gravity as new construction hit the highest level in over a decade last month despite surging mortgage rates. what gives we'll ask the ceo of umh properties twitter is coming off the best day since elon musk disclosed his stake in the company. a new player now considering joining the fray we'll tell you what it may mean for musk's next move for musk's next move 's retirement party. worth is giving the employee who spent half his life with you, the party of a lifetime.

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welcome back to "the exchange." here's your cnbc news update at this hour. as russia's military releases video of its new offensive in eastern ukraine, a senior u.s. defense official confirms that some limited russian operations including long-range artillery attacks are underway in the region nbc news quotes that official as saying the u.s. thinks the moves are preludes to larger offensive operations the russians plan to conduct. even as boris johnson went before parliament to apologize for what is being called his partygate scandal, a senior lawmaker says the uk prime

minister should step down now. johnson told lawmakers at the time he didn't see anything wrong with attending a birthday party thrown for him during a covid lockdown >> it did not occur to me then or subsequently that a gathering in the cabinet room just before a vital meeting on covid strategy could amount to a breach of the rules. i repeat, that was my mistake, and i apologize for it unrereservingly. it's late in april, but that isn't stopping the snow that's falling on parts of up state new york a large storm system dropped up to 18 inches of snow in some enteer yore areas of the northeast. tonight on the news, i'll be in more shepard smith we'll tell you why the number of spam texts is exploding, with some of them even appearing to come from your own number.

i have gotten those texts, so i want some answers >> i have, too a lot lately still ahead, netflix, ipm, procter & gamble all set to report the near-term options are implying a move of nearly 10% for the stock after april 4th. the question is in which direction. we have key things to watch next we have key things to watch next in earnings exchange -nice. -yeah. voya provides guidance for the right investments, and helps me be prepared for unexpected events. they make me feel like i've got it all under control. voya. be confident to and through retirement. hybrid work is here. it's there. it's everywhere. but for someone to be able to work from here, there has to be someone here

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welcome back to "the exchange." it's all about netflix this afternoon at the streaming pioneer whose stock has been struggling is set to report. we'll reveal all the key names and metrics to watch let's get started with earnings exchange first for netflix which has traded lower on every earnings report since mid 2018 except for two. last time the shares tumbled 22%. right now the stock is trading at half of its all-time high around 700 julia has the story, and what to watch for netflix, and jeff has our trades today, cio of sanctuary wealth welcome to you both. julia, kick things off

>> well, the number that's always in focus for netflix is the subscriber number. this company the -- subscriber growth was slow, about 2 .5 million subs. analysts are wondering if the number could be lower because the company lost about a million subscribers when it stopped operating in russia because of its attack on ukraine. the question really, though, is even more important than that subscriber number, how many subscribers it forecasts that it will add in the second quarter the analysts consensus for that is 2.6 million anything, any insight into guidance and how competitive forces and all these different factors are going to impact subscribers, that is what investors are going to be focussed on. >> it's suggesting here that 2 .5 million isn't just what consensus might be it's kind of been a line in the sand for netflix is that right? in other words, people we know it's slowed. we know there's more competition, but it's kind of like how much, to what degree?

>> yes and i think that that's why this second quarter guidance, and any guidance or insight into trends for the year is what's increasingly important here. because there is this question of how much did stopping operating in russia really impact things? and, of course, that's a unique, unusual situation. when it comes to the broader trends, there's how much is competition impacting netflix? what about inflation the fact that netflix has been cracking down on password sharing is that hurting or helping? and also remember that netflix has rolled out a series of price hikes. how does that play into things there's also a factor that we want to keep our eye on, and that is what about these other businesses that netflix has been pushing into such as video games and live experiences. they have this bridgerton experience it's a ticketed event that goes from between $45 and $85 when do those side businesses really start to boost the

company's revenue, or are they seeing a notable impact in terms of marketing appeal? >> absolutely. jeff, i turn to you. you say expectations are absurdly low is this chart still broke snn. >> i think it is, kelly. and to julia's point, absolutely what has been feasting upon the stock price are the three points she brought up the price increase for the subscription of netflix. the pass code break down that's changed sentiment. the third is competition look at competition on amazon or disney plus. it's moved it from nearly 70 $0 to $350. expectations are low the reason i'm not buying it yet is i want to see a turnout they have 220 million subscribers globally they have 35% of all the streaming out there. they still are the paramount leader but right now they have to get things under control. the volatility in the stock is a broken chart i want to see a positive earnings see some tranquility in the name i'll be a buyer, but i have to

see a turn around. >> we'll see if that begins this afternoon or not we'll turn our attention to ibm whose shares have been flat over the past year, and the street looking at how quickly big blue can grow that software business. we have the story and maybe some catalysts that could jump start the stocks >> no bridgerton experience here, but any signs of companies scaling back their it budgets is a focus when ibm reports there are a lot of buzz words that has been in tun around mode for many years digital transformation, ai, cyber security following the red hat acquisition. software will be the key focal point. the transition into a more cloud centric company under the ceo who made it a big priority since becoming ceo morgan stanley is launching for any potential pause in consulting deals in europe due to the russian or ukraine crisis analysts say ibm has roughly 30 % revenue exposure to the

broader region the stock is flat this year, but compared to -- down 28, part of that has to do according to analysts the dividend of over 5% >> thank you jeff, this is a strange world we're living in. you're slugging off netflix, not buying but you seem like you're beyond excited about ibm here. >> you're right. and bringing sexy back like justin timberlake. boring is sexy ibm is essential to the economy. ibm lives in the special 40. you've seen a restructuring. this restructuring, this focus on this hybrid cloud, different than the public cloud which i say amazon and microsoft live in the hybrid cloud, they want to tap cloud players these days it's hard to imagine that they just happen to have this restructuring. there's a lot going on they also are a little bit of a private equity fund.

they're committed to $20 billion on mergers and acquisitions through 2024 the red hat acquisition, that's not going to slow them down. look for them to continue to grow that software sector, and that's where they're having high teen digit returns this is a kind of sexy name despite being so boring. >> one of your top picks and barren's and the shares are rallying into that report. we appreciate it final kwlirks we close out with procter & gamble reporting tomorrow morning as the stock is a couple percentage points off the all-time high. it's about supply chain and pricing power. dom has the story. >> p&g is probably one of the well-known and closely followed. it gets so much more attention for a nontech media company. the consumer brand portfolio touches so many different parts of the global consumer let's get the housekeeping details. the consensusestimate for

details is $1.29 this is going to be very much to your point about the management commentary it's been working hard p&g has to ncrease productivity, contain cost in the inflationary environment but what we've seen over the last several months and quarters is that customers end users will continue to pay up for trusted brands indicating that companies like p&g have that so-called pricing power, the ability to pass the costs along to end users to help preserve their profit margins how long will the inflationary pressures last we'll see if they say anything about that during the call as for what kind of price action to expect, the options market right now is pricing in roughly a 2.6% move in that stock up or down for context over the last eight quarters, the average absolute move for p&g has been up or down roughly 1.8 % so a slightly more volatile post earnings trade expected for p&g. >> that's about as excited -- 2

.6 % jeff, i don't want to make you call which way it's going to go, but why have you been buying j&j instead of p&g >> i look at the leadership of j&j. i'm not going to discount the fact that p&g has outperformed the s&p 500. i look at j&j as a larger market cap and more diversified that's where we have been. however, i am interested in p&g. pull back to $150. right now trading at $158. that's not a big pullback. it may not get us there today, but if you look at p&g, certainly it is a great insight to what the global -- or the impact of global inflation is. they are a consumer staple's giant. at the end of the day, we have to see to dom's point, how they pass along the pricing point and do they have the pricing power johnson & johnson have right now i'm interested in p&g. another boring stock, but boring

has become sexy. p&g is on the radar, but i've not pulled the trigger yet >> outperforming that gets anybody's attention these days leave it there that does it for this edition of earnings exchange coming up, the mortgage payment for the typical home has increased by $250 a month since march. what that means for the affordable housing market and for housing overall. and during april we're celebrating financial literacy, and featuring some of our cnbc contributors here is tim. young people in this country are most valuable assets this is my daughter, sky as a parent and investor, teaching her how to plan for her financial future and set goals, it's about instilling a value set. and it's about helping her become independent and charting her own path in the world.

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welcome back i'm calling this a mike santelli day. we have super strong markets despite aggressive moves in the interest rates nasdaq is leading the way. up 220 points. dow up 100 points off the session high strength in housing. starts new home construction last month just beat estimates rising rates might be raising some red flags we'll have that next we'll talk to the ceo of umh properties which develops manufactured housing communities. his view on the ground what is happening right now.

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here umh properties builds and operates premanufactured homes the ceo joins me now sam, good to see you welcome. >> thank you for having me >> what do you think's going to happen with demand here? >> well, demand for affordable housing or products is substantial, you know, giant gap between the number of people who need quality, affordable housing and the supply and that's not improving. umh has communities with vacant sites. we've built additional communities. we have 97% occupancy of our rental homes and we try to add 800 new rental homes per year. we see demand is significant so we're trying to see how we can build more communities >> are people typically just renters are or they affected by mortgage rates here? >> we sell homes and rent homes

and historically in manufactured housing, there was a significant difference between the interest rates people paid to borrow and buy manufactured homes versus a mortgage our product was more expensive on the lending side, but umh created a relationship with fannie mae that resulted in reducing interest. we obtained a 6.2% mortgage on properties and we are paying direct financing on rental homes and this has led to us being able to finance manufactured homes that we sell for 4.99%, which for the first time in history is lower than mortgage rates. >> that's quite a turn of events i don't know if it can stay down at that level, but i guess the point being 5% is something your buyer has been able to afford so maybe the 5% mortgage rate isn't the end of the world for them. do you think it's going to send people at the margin towards your properties who now feel like they can't afford

traditional housing inventory? >> that's been the history back in the '70s when interest rates went you know, way up high, manufactured homes hit a record high of 300,000 shipments per year people need a quality place to live and the rising mortgage rates magnifies the difference between the cost of our product and the cost of site-built housing so that you know, there's more of a need for our product. >> last question are rents plateauing at all since some of your communities are further out, is the rise in gas prices plus the end of the pandemic leading to some deterioration in demand for those units at all >> no, demand's incredibly strong we're hoping there's a way for the people who build warehouses and factories to recognize they should take the vacant land near their properties and zone it for manufactured housing so people have to drive less distance to get to quality, affordable

housing, but again, the demand, you know, the baby boomers, millennials, they all need quality, affordable houses to live in and that's what we provide at very reasonable prices >> and you've always got some intriguing ideas thanks for joining us and providing an update. >> thank you for having me >> the ceo of umh. up next, twitter may soon find it with a line of suitors after elon musk expressed interest in buying the company interest in buying the company who could be steppin ♪ ♪ ♪ ♪ plate? that's next. ♪ ♪

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critics agree, the bad guys are good. and have an impact on the issues invyou making me blush.st. it has a ninety six percent on rotten tomatoes. jackpot! and stands out from the pack. where'd you learn to do that? mostly youtube. welcome back another twist in the twitter saga apollo considering making a move leslie >> this is really on par in the course of buyouts.

an asset like twitter becomes in play, which means potential inquirers surface potential bidders and those who finance such offers start waving their hands to get in on the action. they're talking with the consultants and bankers and enter private credit funds you may know them for their buyouts, takeovers of yahoo! and michaels, but apollo has a massive credit arm as welcome prizing more than $350 billion in assets. it's credit arm is used to help other private equity firms finance their takeovers. apollo has partnered with tech buyout shop bravo in the past, a firm considering a bid for twitter, although i haven't independently confirmed how serious they are i'm told apollo could participate in some type of equity financing, but again, all

of this very, very early stage exploratory. a source tells me apollo is not interested, this is important, not interested in buying twitter, but like anyone in the financing business, is seeking whether they can provide debt or equity to help someone else. via elon musk or another private equity firm buy twitter. >> because the beauty of twitter is i see people posting their irr models of how lucrative a buy it could be. but would they be providing financing for a rival bid to musk would they potentially partner with musk? or is that ruled out i don't know what you make of the "new york post" reporting that musk may be able to put up $10 billion of cash. >> and start his offer in about ten day's time the post is reporting, but at this point this time, my source tells me it could be either side it could be the musk side help them line up financing or a private equity firm.

at this point in time, you can pretty much bet that the vast majority of these larger private credit funds are looking to see whether they can and want to be a part of some sort of financing opportunity here because this is the largest buyout we've seen in years. >> wow that's a great point everything else going on with the story. leslie, thank you. we appreciate it that does it for the exchange this afternoon "power lunch" picks things up right now. welcome, everybody, to "power lunch." here's what's ahead on a busy tuesday afternoon. a rally on wall street stocks are up, yields are up, which means bonds are down, but the you like the yields going higher, they are already has the market priced in a fed tightening that's the question and the answer to it is really key to whether the rally can hold and a techtonic shift.