basis. a best in class franchise. reasonable valuation housing market is a challenge, but they're a best in class management team. >> jason sunsnipe, quick? >> i like tjx here super lean cost structure and the ability -- >> just a name, josh i've got to go >> nee, next hour energy >> thanks, guys. see you in overtime. "the exchange" is now. >> hello, everybody. i am brian sullivan in once again for kelly evans. a key piece of data suggesting the fed may start to back off the fed rate hike gas pedal. we'll take a look at where we could go from here and how to position now plus, crypto chaos ftx reportedly on the brink, and its founder facing all kinds of questions. it is hitting the entire crypto world, but is the worst now behind us? or maybe still to come

and just how much are rising rates hitting housing? we are going to look west with the ceo of one of seattle's biggest banks, who's actually live right here in studio. all of that and much more ahead. but we begin, where else with this big inflation-fueled rally. but it's an inflation-fueled rally that's a good inflation-fueled rally, because inflation actually cooled down just a bit still red hot, historically. but the trend is what the market looked for and this is turning out to be a massive day for the bulls, particularly on the tech side. and by the way, a reminder of why it's so key to not try to time the market, right you want to be in the market every day, because you're going to have days like this that kind of come out of nowhere. the s&p and nasdaq are on pace for their best days in two years. the nasdaq is up 5.5%. numerically, the nasdaq not up as much as the dow, but not far off. the nasdaq is up 576 points. on a market like this, obviously, every sector is

trading higher led by consumer discretionary, real estate, tech, whatever you name it, it's up speaking of tech, big cap has taken off. you know the names, amazon, alphabet, microsoft, amazon is up almost 11%. microsoft up 6%. alphabet and apple, up 6 and 6.5% some of the biggest gains in years. semiconductor stocks also being bid up amd, nvidia, western digital, all with 9 plus -- actually, 10, 12% for amd. this sustainable we don't know. that's going to be the question. there's probably a little computer action thrown into this, as well. unless investors just see their business 12% better because of a slightly lower inflation reading. i'll let you be the judge on that on the flip side of equities, yields, they're going down at one point, the ten-year yield was down 30 basis points we're back under 4%. there's this inflation print right here it's like that guy from the price is right if you went over, the alpine

guy. an anyway, crypto is falling all of this bullishness bitcoin is up to 17,281. completing the hat trick or the quad trick, commodities are also moving higher. basically, it's the everything rally redux. there we go. let's talk about it all now. joining us to kick off the hour is brian railing, global head of fixed income strategy at wells fargo investment substitute and keith fitzgerald, principle at the fitzgerald group keith, i will start with you i'm not being cynical about the rally. it is a good day in what has been a tough year, but i just wonder if stocks deserve to have -- deserve ain't got nothing to do with it. if stocks should be moving up this much on a slightly lower inflation number >> well, should be and are are two obviously very different

questions. you know, this is something that's very interesting to investors, because there will be no warning bell when the fed lets off or inflation begins to moderate so what you're seeing today is par for the course people want in they want good news to actually be good. s so i love what i'm seeing. whether it sticks or not is a different question >> what do you think has inflation peaked will the fed turn dovish >> i don't think the fed is turning dovish i think inflation has peaked, but, you know, this is going to be an up and down process. but, you know, i think we're in the process of finding the peak in yields. so, you know, i think overall, we have good news, but this isn't just smooth sailing. >> i should probably get the word "dovish" out of our lexicon, because there's a big different between a hawk and a dove there's falcons, there's owls, you know, other birds of prey. the fed is still going to raise rates in december. are they not, keith? >> i think so. look at it this way. the fed got transitory wrong

the fed has gotten this wrong. why on earth are we looking to what the fed is going to do? they have a history of overshooting i think that's a foregone conclusion, personally what i would like to do, personally on days like today is pick those strong names, look for the ceos putting numbers up on the table, who are already ahead of where this is going >> guys, sit tight we'll come right back to you, but we have an auction on 30-year bonds. pretty good indicator of demand and where people think inflation may be going rick santelli, how did that 30-year bond auction go. how do you grade it, professor >> exactly the opposite of yesterday, sully yesterday was a d-minus. today is a solid "a. boy, this is what an auction should look like and i'll tell you what, when you see yields drop as much as they have prior to the auction, i have to tell you, i was a bit surprised at the aggressiveness of investors $21 billion 30-year, the yield, 4.08 the when issued market yield was hovering at 4.11 so turn the screws three basis

points, exact opposite of tailing, and that's a good thing. and if you look at all the metrics, they were very good the one that really stuck out, though, was the dealer takedown. sully, the ten-auction average is 13% i have 20 years here i cannot find a better, a smaller takedown by the dealer community. a solid "a," and it really goes a long way in telling us, not only do investors and foreign exchange investors pay close attention to this morning's numbers, but in investors think that the trend of less inflation, most likely will continue back to you. >> rick, thank you i'm trying to remember the last time rick gave anything an "a.

do you think they've peaked? >> i think there's a good chance they've peaked, maybe not on a day like today, but i think we'll be back up around the 4s and i would be locking in rates for the long-term. if the fed gets inflation down, you know, to 2.5 or below, you know, a 4% locked in rate is going to look really good. the best trade back in the early '80s was buying long bonds >> we've come down half a percentage point on the ten-year, in a matter of weeks we peaked out 4.23%, we're at 3.83%. keith, is one of the reasons -- we get so obsessive about these little nuanced numbers but why stock investors care, and correct me if i'm wrong, but because interest rates impact how you discount free cash flow, and they impact valuations so these moves, like 12% jumps, you know, at amd, it's a slight valuation shift, i have to ima

imagine. >> you are absolutely right. so when the cost of capital comes down, it means that big immune can get on the gas, because they can borrow more leverage the place they go right for the jugular vein will be the big liquid stuff the names that everybody has got to have in their portfolios come bonus time at the end of the year that's the kind of stuff like on a day like today is really important to watch it tells you who's got an appetite and to rick's point, a lot of people do right now. >> and do you think this is humans doing this? this smells like a lot of wall street computers not taking anything away from how good it feels. >> well, i tell you, i've been doing this 42 years at this point. i was there for the early days of computers they're definitely at hand, they're definitely playing it's a self-fulfilling prophesy. but also, there's a lot of individual investors who are waking up and going, you know, i should be in the game. that's the biggest fear is they're not right now. so you'll see some fomo fueling this, too. >> and brian, what's the next

most important thing you're looking for, now that the contracpi is out of the way >> i think we've got a little bit of a runway here the next most important thing is that fed meeting in december you'll get the cpi right during that meeting and then we're going to get a summary of economic projections. so we'll get a lot more information coming out of that meeting. >> and that meeting is on december 13th and 14th brian and keith, great stuff really appreciate it thank you very much. we are just getting started here on "the exchange. and coming up, we are going to speak with the cofounder of tether about all of the drama in the crypto world plus, how much are higher rates really hitting housing the ceo of one of seattle's leading banks is here. as we head to break, here's another look at markets with stocks in rally mode after that inflation data, the nasdaq is up 600 points, nearly 6%. take the family to dinner tonight, for pete's sakes. we're back right after this.

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welcome back to the the exchange let's get more now on the constantly developing and very important story around the collapse of crypto exchange and its hedge fund, alameda research the ceo out this morning with a long and often rather bizarre

tweet thread this morning, saying a lot of stuff, including, quote, i blanked up now, multiple reports are saying ftx used customer funds to make risky investment bets. let's take a look at what ftx ceo sam bankman freed actually said on the record to congress just a few months ago. listen >> if you look at what precipitated some of the 2008 financial crisis, you saw a number of bilateral bespoke nonreported transactions happening between financial keown parts, which got repackaged and releveraged again and again and again, such that no one knew how much risk was in that system, until it all fell apart. if you compare that to what happens on ftx or other major cryptocurrency venues today, there's complete transparency about the full open interest, there's complete transparency about the positions that are held there's a robust consistent risk framework applied. and working with our u.s. license and regulated venue to

bring a lot of this to u.s. customers as well. >> that was in late 2021 and then a few months later, maybe a year later, they announced that a formercftc commissioner was going to join their board. reid collins is cofounder of tether and he joins us now still a lot we don't know. ban bank bankman-fried talking about transparency, transparency, transparency what is your take on the ftc situation and sam bankman-fried personally >> it's a crippling blow to the crypto currency. when sam bangman-fried teed himself up as a champion of regulation in the space, for him to implode like this, it's really a devastating blow.

and as you can see from the markets, it's having a great impact >> and it's reducing confidence. i think that's a fair statement. reducing confidence across the entire ecosystem, including tether, the stable coin that you co-founded what's your response -- what would you say to sam bankman-fried if you were in the same room with him right now >> i think everyone wants to know how he could possibly let it get this far out of hand. some of the -- but, i want everyone to know and realize, it's still a lot of speculation. we're getting all of this news in realtime, and most of this news is coming from rumors we don't really know the true story. and everyone loves to speculate. it becomes much more sensationalized that way so we need a few more days to understand what happened it doesn't mean he didn't make some really big missteps and i'm very interested to see what those are and if they're as

bad as everyone is speculating them to be it's unbelievable that he could put himself into this position >> i'm going to ask you to speculate a little bit the question i've got, i was just on the phone with our reporter kate rooney right before the show, and i said, okay, they're claiming $8 billion in losses, or at least that's the report. so my questionto kate and to you is very simple what are these $8 billion in losses this is an exchange. if uber loses $1 billion a quarter, i get it, because they have operating expenses that are outstripping the revenue that happens a lot this is an exchange. it's supposed to be asset-lite do you have any idea what these $8 billion of losses actually represent? >> again, there's a lot of speculation and some of that speculation is that he did use customer funds to bail out alameda, his hedge fund venture, and this is a knockdown effect from the terra luna collapse and it had massive ripple effect

in the industry. and he bailed out alameda, who was heavily involved in that, and terra luna as well and it seems like this could potentially be that he overleveraged himself. he stepped up, they tried to save a lot of companies that were impacted by the terra luna collapse, and it seems like he just got a little overleveraged and did some things he probably shouldn't have done. >> and if that is right again, and i want to be clear, we don't know, there's a lot of speculation, we've got a lot of data that everyone is trying to piece together the doj is going to get involved if it turns out that there was just good old-fashioned losses at alameda, that this guy with an m.i.t. physics degree maybe and his team just weren't good at investing, we've seen it before, long-term capital management among others, that if there were just losses that were then backed up by ftt or ftx or bankman-fried or customer accounts or whatever it might be, in some weird way, would that be a relief to the

industry, because it doesn't necessarily mean that there is an industry-wide contagion, that this is just, wow, they really blanked up in bankman-fried's own words? >> exactly and one of the biggest issues is alameda's balance sheet did hold a lot of ftt token as well as solana token and when those imploded, that's what they were utilizing as collateral so they weren't able to make good on any of the positions that they had in the market. and so that's why he was trying to bail them out and so, yeah, it's really created a lot of -- >> it sounds like -- i've got to go to a movie for this i'll quote the great philosopher, tony montana, who in "scar face" said, don't get high on your own supply. and if you have a company that's backing up its own assets with its own assets do you wonder, reeve you co-founded tether, worked at

razor fish, you've started companies, probably very well regulated, heavily regulated companies. do you wonder how regulators just missed this just -- >> well, it's not that they missed it. it's very difficult to regulate. and the regulators are doing their best to educate themselves and ideally make responsible regulations. and sam bankman-fried was putting himself first and foremost in that space to actually help them regulate and become the most regulated d exchange so it is devastating that this took place i do knowthat it is going to trigger a lot more scrutiny and a lot more regulation. but there are companies like coin base and circle base in the u.s. that are already regulated. and they welcome more regulation, so they have more clarity. >> and ftx is -- again, i'm no expert on crypto i'm a pretty good expert on financial markets and human behavior, having done this for 25 years so if i ask a stupid question, i apologize. did ftx buy a lot of tether? they did, as a stable coin,

backup, or no? >> yes, they absolutely had tether on their balance sheet. >> do we know the status of those stable coins >> the status of tether? >> on the ftx balance sheet. assuming they're still there >> i don't know. i don't know the status of the ftx balance sheet. >> yeah, well, i think nobody does, reeve, and i think that's what we're all trying to figure out. before we let you go, because there's a lot of our viewers, for them, they hear the lingo. it's a very jargon-heavy industry i've screwed up on it many times, explain to them in just clear layman's terms the difference between what tether is, a stable coin, and what an ftt is because we're learning that ftt may not have had anything behind it but vapor. >> exactly so the problems to tether is it has a 1-to-1 reserve the elegance of tether's business model is in its simplicity you put $1, we take it, put it in the bank, create a token and

issue that token that token now works on a block chain. and it's always redeemable for that $1. now, you might have heard that tether d-pegs or people are shorting tether, that's on third-party exchanges. tether trades on these exchanges and there's lots of demand and sell pressure, it goes down to 98, 97 cent, lots of buy pressure, it goes to $1.02 that's why people put these massive shorts, a $100 million short, that makes for great news, because they might make 1% but at the end of the day, you can always redeem that tether at the corporate website. that's why it's always pegged to $1 tether cannot d-peg. it's only on the third-party exchanges. ftt was another type of stable coin that sam tried to create that wasn't one-to-one backed to dollars. he created other assets and other mechanisms to try to peg it, similar to terra luna. and those are experiments. and they've failed the only one that's battle tested and tried and true is the

one that's super basic, put the money in the bank and issue a token. and it's always going to be one-to-one >> so you feel confident to say, co-founder of tether, this is not an ftt situation that there's -- viewers and investors have to know the difference between all of these cryptos. and there are critical differences. >> yes there are. and that's the problem people get excited and they get caught up in the hype and they hear that this token is taking off so they all pile in. at some point in time, it is like the emblem, they get in, and they need to get out before it collapses until they find the ones that have the true value, like bitcoin,ethereum, like tokens that have real usefulness, instead of these win tokens >> and tokens they created out of thin air and apparently backing up their own assets. reeve collins, really appreciate you clearing it up, coming on, it's a tough day crypto is higher, by the way reeve, thank you very much

all right. programming note, next hour, do not miss coin base ceo brian armstrong. he'll sit down with andrew next hour on "power lunch." that's a big interview 2:30 eastern time today coming up, forget the old woman who lived in a show. whatever happened to her, anyway how about a living proof of a 3-d printed home it's not fantasy it's real. and diana olick will show it to you, next.

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do not adjust your dial. if you are waking up, you're in like hawaii or guam or something, this is actually happening with the markets the nasdaq is up 600 points, nearly 6%. dow kind of lagging, but still 2.5 point gain one of the best days in years for the markets, on that just slight -- i mean, a slightly lower inflation -- food was still up in price, but used cars came down. so everything's fine market's rallying. as you might imagine, a lot of stocks that are on the move right now. here are a few key ones. kathy wood's flagship ark

innovation etf having its best day ever, going all the way back to its inception in 2014 a bunch of companies there, look at unity, invisitae, pacific biosciences, but the ark innovations etf is up 12% right now. still nearly 80% off its record high, but today, it's a good day. all right. the wisdom tree cloud computing etf also having its best day ever more than half of its components up double digits and check out some of the names hitting new all-time highs o'reilly automotive, raymond james, progressive, lithium company albemerle. the dollar index on pace for its worst day going back to december of 2015. a lot of superlatives today. you know what's also a superlative, tyler mathisen with

a cnbc news update >> here's your cnbc update at this hour. while votecounting continues i key races across the country, the top candidates in georgia's senate race are already positioning for their december 6th runoff election. in a new memo, democrat raphael warnock's team laid out their strategy for next month, including attacking the republican rival herschel walker as, quote, completely unqualified. republicans starting to rally behind walker as a new wave of fund-raising kicks off an update on the human toll of the russian war in ukraine. the chairman of the joint chiefs of staff, mark milley said yesterday that well over 100,000 russian soldiers have been killed or wounded in the nine months of the war. milley added that there could be as many as 40,000 ukrainian civilian casualties. and the irs and doj are both asking the supreme court not to block a request for former president trump's tax returns. democrats from the house ways and means committee were temporarily blocked earlier from

receiving the returns while the supreme court decides, brian, how to proceed back to you! >> all right tyler, thank you very much up next, consumer spending, mortgage rates, loan demand. we are going to look at the latest trends on main street and what it all means for the health of the economy, the ceo of wafed here from seattle. he walked l althe way here we're back with him, coming up next stick around if you have this... and you get this... you could end up with this... unexpected out-of-pocket costs.

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welcome back to "the exchange." yeah, a big-time stock market rally. the nasdaq is up nearly 6% it all on that slightlylower inflation data and high hopes for a fed soon to turn maybe dovish speaking of the fed, we are getting new headlines from esther george. steve liesman has those details. >> esther george, the kansas citi fed president, looked at the inflation numbers this morning and said, monetary policy clearly has more work to do she said, inflationary pressures have yet to let up monetary policy and financial conditions must continue to tighten, according to esther george, joining others, by the way, who have made similar comments in the wake of that

better than expected inflation report she goes on to say, higher inflation expectations point to a need for considerably higher rates. and that the impetus for inflation has changed from being initially about a move by goods prices, now it's moved by tight labor markets. she has seen a little bit of help there, brian. some early indications, she says, the labor markets might be cooling. and the one somewhat dovish thing she says, but this goes back a ways. she says a more measured approach to rate increases may be particularly useful she had been opposed to that 75. but clearly, esther george, who's long been hawkish, continues to be so, and sees the need for higher rates, as have several other fed speakers. >> i heard you making to point rather emphatically. i think it was on halftime today with scott, steve. which was basically like, okay, let's feel good. maybe we didn't get the 8% number, but by no means. it's like the market is acting like inflation is over it's gone. everything is fine no, it's not >> here's the thing, we're

closer to the 9% peak than we are to the 2% goal so if you're looking at this like a climb up downer a mountain, we are certainly, you know, closer to the top than we are to getting back to base camp >> yeah, and when is our next big -- do we know when our next big fed speaker is we know outside of powell, the market kind of ranks and they listen to some more than others. >> ohold on, brian i know you were going to ask me about the next big number here >> will the bills cover against the vikings this weekend can i ask you that >> i think the big story, brian, is going to be the december jobs report and i think it's going to be that inflation report that comes the day before the fed meeting but i'm looking here in terms of the friday schedule, we've got a boat load of folks talking i don't have anybody, i don't know what i'll do with myself tomorrow, brian. i don't have any fed speakers tomorrow i am seeing a bit of a split, brian, on the fmoc here.

very, very minor those who are a little bit more worried about doing too much, versus those like esther who spoke earlier, and she's worried about doing too little >> no fed speakers is the new day off. steve liesman, enjoy yourself. drape yourself in velvet steve, thank you very much >> ensconced in velvet >> ensconced no, they won't, by the way, the vikings will cover speaking of the fed and rate hikes, how much are these higher rates hitting housing? here to talk about an exchange exclusive is the president and ceo of wafed bank, brent bearfo. you came a long way to see us and we appreciate it >> it is great to be here in person with you. appreciate it. >> let's say that after the interview. your area had one of the hottest housing markets in area. amazon and microsoft employees trampling with each other to put all-cash bids on homes over $100,000 over asking now the numbers are down 70% on

mortgage originations. >> it's not good, but it's healthy, quite frankly >> it is >> it was too hot. things went too far, too fast. and if you take mortgage rates, a year ago, mortgage rates were 3.5% and now they're 7, 7.5%. so that's going to happen. but what i keep telling people is, don't forget, there is more cash sitting on the sidelines today than there has ever been and i think people are waiting for a correction, and then they'll gobble them up i don't feel we're at risk today in the housing market the same way we were going into the '08, '09. >> do you think the risk was greater when housing -- i'm sorry to use this term, housing got stupid in many areas, right? people putting in $100,000 bids without ever seeing the home, no contingency, right, that was shades of 2007, in some markets. >> that's my point it's healthy, right? because it was stupid.

we need things to cool down so we don't have those irrational buyers >> when do you think we'll return to or have we returned to rational rationality? >> i think the number this morning, your conversation with steve earlier, it sounds like things may turn the corner, but we're still very high on the inflation. so to know when we will have turned the corner or when we'll be back there towards normal, we're trending in the right direction now, which is a positive as opposed to, hey, we were going even higher on nutrinflat. that's a positive. and what you saw this morning, the market is looking for any shred of positivity to say, hey, it's a buying opportunity. >> you're a bank, a regional bank and banking should be boring, right? the idea that you take in deposits, you make loans you get paid back and make a spread on that loan and make a bunch of money for your investors and your stock, by the way. are higher rates good for you? are you seeing al of people just put money, literally, in the

bank, instead of buying bitcoin? >> you know, a lot of things to cover there. let me first say, boring is beautiful. we aspire to be boring there is nothing wrong with that there's enough excitement in ee everyone's life, if your banking can be sboering, that's a wonderful thing. spreads are up, which is a good thing. because of the actions of the fed, when they took rates to nearly zero, all bank margins got compressed now they're trending back to where it's a healthy level again, i think that's a real positive >> and are people literally putting money in and buying cds, certificates of -- we haven't talked about this in decades >> cds actually pay a reasonable return at this point >> what's a return what could i get on one-year money, six-month money >> the cds tend to go with treasuries so you've got the one-year treasury in the 4% range so typically, you'll see cds ranging from 3% up to those

treasury rates >> that doesn't seem too bad these days, considering the stock market even with today is big down this year >> the other thing to consider, though, is just the immense amount of deposits that came into the banks during the pandemic, right, when the government was putting on so much stimulus out there. so you had nearly $4 trillion of deposits that came into banks in the united states. $4 trillion. so the banks are all flush with deposits, right? so now, actually, we're seeing net outflows as people say, hey, there are other opportunities out there, which is not necessarily a bad thing. >> we wonder why there was inflation. we had supply issues, and oh, $4 trillion just thrown into the bank accounts of tens of millions of americans. >> turns out supply and demand is true. >> it actually works milton friedman somewhere is smiling. really appreciate it thanks for coming in, and bringing our old friend and colleague, brad good here with you. he looks good! he looks younger than he did when he was on air here.

>> did you see what he did to the marks this morning >> brad good walked into the building and the stock market took off brad, come over. everybody knows brad it's great to have you do you want to take over here? >> it feels like old days, to be back here in in the cnbc rally >> you bring a west coast bank in and good things happen. >> and i've got to get one of these green ties it would go great with my eyes thank you. >> thank you coming up on "mad money" tonight, here's a big one. goldman sachs' ceo, that's a bank on with jim at 6:00 p.m. eastern tonight. still ahead on this show, the itv home construction etf up almost 10% by the way, speaking of housing, would you live in a house made from a giant printer we're not kidding. it's real. and diana olick apparently has like visuals of this the magic of tv, diana

>> that's right, brian in fact, i've seen one-offs of 3-d-printed homes before, but alver anything of this size and sce. why a major builder, lennar, is betting big on this, coming up next on "the exchange. ure. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect. hi, my name is tony cooper. and if you have both medicare and medicaid, i have some really encouraging news that

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welcome back let's talk housing the builders, by the way, their stocks are up double digits right now. and while interest rates get all the attention lately, there is another big issue in the business that is labor. or rather, lack thereof. so at least one home builder is turning to something else to solve that problem and that is really gigantic printers diana olick is live in georgetown, texas, with that story. how do you print a home? >> well, brian, i'm going to show you these are the massive 3-d printers, which are literally doing the job of more than a dozen construction workers as i said, we've seen one-offs before on 3-d printed homes, but

never anything like this they're squeezing out homes at a rate of one every two weeks, 3-d printed homes in the first-ever full-scale 3-d community from a national home builder, lennar. >> this is the first 100 homes, but we expect to bring to be able to bring this to scale, and at scale, we really bring cycle times down and costs down. >> reporter: lennar is partnering with icon, which has printed a half dozen homes here in texas and in mexico, but nothing like this. >> this system is designed to operate 24 hours a day so that as you look out at the whole community, this is a factory. it's a portable factory that we've brought here with a fleet of printers. >> reporter: to build 100 homes ranging from 1,500 to 2,100 square feet and starting in the mi mid-$400,000 range >> we select the print job we want, press print. >> reporter: and right now it only takes about three people per home to build the wall systems that include mechanical, electrical, and plumbing and as the technology

improves -- >> i think the sort of holy grail is where one person can watch a dozen systems. so not only is it incredibly efficient to build these homes, they are incredibly sturdy because they're made out of solid concrete that makes them weather resilient, wind-resistant, water-resistant, mold-resistant. everyone asks me what it feels like, it feels like concrete corduroy but you can tell the printer to do anything you want, whether it's where to put the island, you put it into the laptop and it prints what you want. i have to say, i do think what they're doing here on this scale could be construction of the future, brian? >> really cool it kind of looks like taffy, like you're living in a taffy home, but i guess it's stronger than that. we've been talking about inflation all day, diana i'm sorry to throw you on this, is there a inflationary aspect to this? i imagine those materials are pretty commodity price

sensitive? >> reporter: well, absolutely. look, it's cement and concrete it's going to be cheaper in the building process, anywhere from 10 to 30 times cheaper these homes are starting in the mid-$400,000 range, anywhere from three to four bedrooms, two to three bathrooms they are more expensive, because lennar is putting all kinds of high-end fixtures in them, solar on the roof, high-end cabinets, but a home like this could be anywhere from 10 to 30% cheaper than a comparable constructed home and on the labor side, you're doing it two to three times faster with really just two to three guys on each home. >> that is something else. and the future is here diana olick, very cool >> it is >> appreciate it >> thank you very much all right, still ahead, lots more on this massive market rally. what naumes have the best set-up to ride this move even higher? we have got some names for you sd uuthe dow up big, b t naaqp 6% wow. stick around dude, what're you doing?

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in case you missed it, we've got a big and broad-based rally underway, as inflation comes in tamer than expected. but when the sort of softer

inflation euphoria fades, and it will, what stocks will hold? let's bring in nancy tangler, ceo and cio of laff err tang her inflation. don't tell me that numbers went up, is causing the nasdaq to go up 6%. >> i think in the near term, we both know those are in charge. they run the day-to-day volatility but they create opportunity for those of us who are long-term investors and give us us the opportunity to step in and buy some really great companies at depressed prices nobody loves volatility, but there is a silver lining. >> yeah, there is. i think -- the point i try,ed to make at the top of the show, not giving advice, just looking at historical data, is that, like, half the long-term market gains over 2 and 30 years come from being invested on just a few days, do they not? >> yes >> like one or two days a year can double your returns over the

long haul. today's a great example of that. >> that's true we actually set that chart for our clients recently as people got a little antsy but i think it's important to remember, too, that yeah, only a 0.2 move in core inflation, but we think we hit peak inflation in june. if you look back to 1951, there's a symmetrical relationship between how long it takes inflation to rise and how long it takes to decline we're four, five months into decline. peak inflation is always a good place to buy stocks. if you look at the annual return, 13 months later it's up 13.8%. if you take 2008 out, which you shouldn't, but to illustrate, the market is down 12 months later, gives up 21%. so, you know, this is going to go on forever. every bear market is followed by the bull market. >> i got friends watching. a race car driver, his mom is my

fan, i don't know why. give them some stock picks, they're in dallas, give them some names they might be able to invest in. >> all right the ones for his mom would be names, companies, old-economy companies that are benefiting from the digital revolution. so a company like public storage, which opens 50% of their storage units without ever talking to the customer, or cvs, who now has a really robust digital presence, they increased that by a million last quarter to $46 million they're making the shift then honeywell, kind of the solution and the beneficiary from digital, that's a company that beat rates and said they're sniffing around for acquisitions for the race car driver, i would say -- >> gary. >> gary. a little more octane, servicenow, they had a fabulous quarter and these stocks have not been trading on the fundamentals but the macro i think when the economy does slow and we see that the fed is going to at least pause but

maybe even ultimately begin to reduce rates again, i think these companies are going to ben benefit, so it will be servicenow we've been adding to that, amazon, microsoft, they're in the sweet spot of providing solutions and that's where we want to be >> quickly, the next most important thing you're watching d data-wise, fedwise, the meeting? >> i think the fed meeting is priced in. i'm going to say for the market, that's probably the most important, we're little more focused on the election, how it finally settles out. that's going to have profound implications for the lame duck and maybe potentially a lot of spending but also benefits some of the companies we own like defense and others if they do get the defense bill through >> yeah. amazingly, nothing is settled. senate is not settled. there's still hundreds of thousands of votes to count in arizona. i don't know what they're doing out there, but nancy, thank you

very much. appreciate it. >> thank you still ahead, one data point, today's consumer price index number sending that stock sharply higher, up 30% right now. what is it we'll reveal it and talk about car sales with phil lebeau next. welcome to ameriprise. i'm sam morrison, my brother max recommended you. so my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors the garcia's, love working with you.

because the advice we give is personalized. hey john reese, jr. how's your father doing? to help reach your goals with confidence. my sister told me so much about you. that's why it's more than advice worth listening to. it's advice worth talking about. ameriprise financial. (vo) hi, we're visible, a wireless company that doesn't do catches. which means you don't have to be on a family plan to save. with visible you get one line with unlimited data for just $30 a month, taxes and fees included. this holiday the choice is just...visible. switch today at visible.com. salute to veterans veterans day terry bradshaw: hi, i'm terry bradshaw rocky bleier: and i'm rocky bleier. col. greg gadson: and i'm col. greg gadson. terry bradshaw: on this veterans day, our heartfelt thanks, to all of our military veterans for their service. col. greg gadson: we honor our veterans, and those who are no longer with us. rocky bleier: to all of our military serving around the world, thank you for defending the many freedoms we enjoy. terry bradshaw: tune in to salute to veterans for discussions about the issues our military veterans face daily.

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health insurance doesn't cover at... aflac! ...dot com. one more thing before we go, a glimmer of hope that inflation is fading and the auto market, used car prices, thankfully, finally on the decline phil lebeau is tracking it how much are they down, phil >> 2.4% compared to last month now, you might be sitting there saying that doesn't sound like a whole lot but it's a move we've been seeing in really the last nine months. look at the report on used car transaction prices it's a little hard to see at the

end, but that is a decline we're back where we were pricewise december of last year, just over $30,000, still well above where they were back in october of 2020. the auto dealer stocks are off to the races today along with the rest of the market you have your traditional new and used dealers like auto nation, penske automotive, the biggest of the big auto dealers. then you have other who is do a lot of business in the used market they also sell new, but in the used market, sonic, carmax, they've had a nice day and the mystery, carvana, up more than 30% today. heck of a move, but keep in mind this is a heavily shorted stock. i think something like 37.5 million shares are shorted the short float is like 39% of the outstanding shares and while you may see that's a great move today, it's down about 97% compared to where it was a year ago so it was due for a bit of a bounce and they're getting it

today. >> spent a lot of money on jimmie johnson's sponsorship you referenced used car prices and i'm asking for a friend. are they coming down at the dealerships or just like at the manheim auction? >> they're coming down in both places, brian. we're starting to see it filter through to the consumer, not as much as i think people were hoping to see at this point, but they are trending lower. by next month, they could be under 30,000 for an average transaction price. >> i've been at an auction, hard up against the pennsylvania tur turnpike when is phil lebeau going to be live at the manheim auto auction? we want to see that. we demand it people demand it >> brian, there are -- i've been to them. there are fewer and fewer. nowadays it's the wild west on the internet, a car comes up, you're bidding on it along with dozens of people around the country. >> and paying a couple grand to ship it from san diego to st. louis or whatever it is. good news on the used car front,

thankfully leb e phil lebeau, appreciate it all right. i'm not done with y'all. "fast money" tonight, melissa, got a well-deserved day off. i will be hosting "fast money" and talk about the rally we have a lot to do. you're welcome, america. "power lunch" starts right now phil lebeau, the manheim steam roller welcome to "power lunch. with froank holland, i'm tyler mathisen a very interesting day inflation nation no more well, stocks are soaring, yields dropping, commodities popping as investors cheer a cooler-than-expected cpi report. is it time to prep your portfolio for a fed pivot? and the crypto fallout we'll speak with the ceo of coinbase about the future of the indu