today we added to our position in lennar. >> if orders are up, permits are up. we think new housing has a long way to go. >> these guys, the lennars, the pultys, they're going into strong markets and going in and selling at a price point where they know they're going to get the orders so i think you can own them. >> there you see proof positive that time and time again mike murphy has been banging the drum, bullish on home builders for some time. i guess we're pulling back a bit today after the week of existing home sales figures that we have. boy, what a run they have had. mike, what do you do now? >> we actually added to our position in toll, lennar and pulte. and the reason is simple. you saw the number regarding existing home sales. it was a very weak number. and that's indisputable, although if you peel back the banana, you'll see that you actually have a lack of inventory which contributed to the slowdown. that said, we want to draw a major distinction between existing home sales and the sale of new homes. the tolls, the lennars. we're buying home builders

horton, lennar, and you continue to like ryland and toll brothers. they were all on the downside today. what's the attraction. and what's the unifying theme for all of >> it presents an opportunity to get into these stocks. they were wek on goodidate a. the expectation is to continue to see acceleration in home sales for a couple of months and as long as the year over year pace continues we could see appreciation. >> it's a volatile sector, and it's important to keep that in mind. and risk tolerance, big swings day to day, but we think in the back half of the year you see the good numbers out of these guys. we think we're set up nicely to see the stocks go up. >> susie: any disclosures? >> no disclosures. >> susie: okay. lots of good information megan. megan mcgrath of mkm partners. >> susie: from strength in housing to rising commodity prices, the u.s. economy is grappling with a host of crosscurrents. suzanne pratt reports. >> reporter: no matter what newspaper you read, when it comes to the economy these days, the headlines can be bleak. and, it's

we have a great program for them all set up with a new lennar development at candlestick park. i think they will recognize that and come back. >> was there anything magical that happened in your district as a result of t

we have a great program for them all set up with a new lennar

lennar just bought a parcel and outbid nvr for it.hile everyone else's stock is up. they managed very well in the housing crash and analysts liked them because they were land light and now they need more land. >> kite ty holmes announced the acquired land in danville, california, the bay area to build 84 single family homes. in phoenix, really land strapped, you look on kb's website, it offered four communities but only three open. lenders have very little to offer from deals from owners who had defaulted on land previously. everyone looking for prime parcels and exsurbs still not doing very well. >> like everyone else, the american job interview has gone through a metamorphosis. coming up with some really odd sometimes obnoxious questions applicants at wall street firms are actually expected to answer seriously. >> i've been talking to some head hunters. when you interview at wall street, compared to other meet and greet, it can be like a punch in the face. how many tennis balls can you fit in this room or ask you something slightly

you get pulte homes up 73% and lennar, up 58% and overall, really outperforming the market. >> thankswe're moments away from getting the details on bank living wills. that is, what do these firms have in terms of wiggle room? what can they sell to raise capital in event of a firestorm and worsening economy. >> we'll have a special edition of the "closing bell" in just moments, stay tuned. this summer put your family in an exceptionally engineered mercedes-benz now for an exceptional price during the summer event. but hurry, this offer ends july 31st. but hurry, high schools in six states enrolled in the national math and science initiative... ...which helped students and teachers get better results in ap courses. together, they raised ap test scores 138%. just imagine our potential... ...if the other states joined them. let's raise our scores. let's invest in our teachers and inspire our students. let's solve this. mine was earned off vietnam in 1968. over the south pacific in 1943. i got mine in iraq, 2003. usaa auto insurance is often handed down from generation to generation. becau

lennar to the upside of 52%. ty? >>> it is, sue, the heart of the earnings season and we just saw a big miss for more began stanley, of course. let's take a look at the shares of that company right now down 77 cents, modest number in cents but not so modest in terms of percent decline down 5.5%. mary thompson's on the banking beat. >> a big mess. a lot of explaining to do for the bank because it missed on the top and bottom line. earnings missing estimates by 14 cents a share hurt by poor results in fixed income commodities. revenue down 60% after improvement of two quarters. blaming a pullback of client activity. it's prompted morgan to post come lat real. as for what's ahead, the ceo continues to focus on cutting risk weighted assets and to keep expenses in line with head counts down 7% by year end and unlock value in the wealth management business and strategic options for the european arm of that business and remains on track for another 14% stake in the morgan stanley smith barney join venture by september. inve

you see lennar, horton, pultegroup all up 10 points or better.t place for comparisons here, folks. wells fargo up 20%. although deutsche bank is obviously a foreign bank, it's lost 40% while yielding less than wells fargo. all this could be confirmed tomorrow when wells fargo reports earnings before the bell. expect 81 cents a share on 21 billion in revenue. a lot of these are looking backward but a lot of people think this thesis will work moving forward as well. >> all right. it's possible. thanks to cnbc's brian shactman. our hunt for yield continues. let's do stock market work. we bring in zane brown and host of "sports money." michael, i don't disagree with these specific american companies but the market is behaving badly and has been for many months basically because the economy stinks. what's your take? >> i think you summed it up very well. the jobs report has been terrible. confidence among ceos i think was at a three-year low. we saw that come out. manufacturing surveys have been bad. and then we see a huge tax increase coming. it's go

. >>> before the break, a look at home builders having a stellar day today with lennar you have betterrial average up 200 points on the trading session. with the fidelity stock screener, you can try strategies from independent experts and see what criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies and narrow down to exactly those stocks you want to follow. i'm mark allen of fidelity investments. the expert strategies feature is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. to experience the lexus performance line... including the gs and is. [ engines revving ] because control is the ultimate expression of power. [ revving continues ] ♪ during the golden opportunity sales event, get great values on some of our newest models. this is the pursuit of perfection. syou know, i've helped a lot off people save a lot of money.s. but today...( sfx: loud noise of large metal object hitting the ground) things have been a little strange. (sfx: sound of piano smashing) roadrunn

you go back and say, the home builders moving, the strongest move out there, discussed them lennars at length. you look at this number, any other day the market might give back a huge portion or all of the gains from friday. i think all traders are talking about today, it is a quiet week. people are saying qe 3 back on the table and big ben will come to the rescue. >> hear a lot of that. steve weiss, the market was feeling great to end the month of june. right? now where do we go? >> you take a look at friday, there were air pockets where companies came out with news. credit downgrade in steele. ford came out and said, europe is really bad. to me what we got on friday was an announcement that exceeded expectations of no announcement, my expectation included. now the morning after, what happens. we saw ism. in my view, we'll continue to see slowing in the economy. you have to look at the earnings season which starts next week, but really in ernest the week after. it's not a pretty story. for me, i would pair back positions. some areas of the marketing are interesting. i still think nat

lennar is the best pick of the bunch. kb home is okay on a speculative basis.e call. >> we could have said a better call 50% ago. right? >> they downgraded polte and tripled since october. >> citigroup gyp grading kinder morgan upping the price target to 39 bucks quoting shares appear undervalued following the significant underperformance since the end of march. >> i agree with this one, too. technically speaking, this is an upside down head and shoulders. very bullish pattern here and a six-week high as we speak and little bit fundamental and technical and rising oil prices are supporting here. >> you agree with the call? >> i do. >> down 3%. goldman sachs downgrading discovery communications saying contracting on weak ratings, peer-high euro exposure and competition from the olympics. past week discovery down about 5%. a downgrade of discovery. what do you say? >> i might have to do a little bit of myth busting here. i don't think that's going to hold. you see, first of all, we know that the olympics are coming. two weeks out of the year. i don't think it's t

lennar up 57%. toll 44 and dr horton 11% and maintaining the gains. >> thanks very much. >>> richard matigan and joins us. of jpmorgan private bank. welcome. congratulations. >> thank you. >> a bigger job. >> indeed. >> uneasy wears the crown, right? >> yeah. >> let's talk about housing. diana pointing out that mortgage applications are down and begs the question, have low rates done everything they're likely to do for housing and more broadly for the economy? >> it's funny. it ties back in to rick's comment of the 10-year auction debate. some of the revisions we are seeing also down in growth more broadly and consistent theme so we have got a growth that isn't stalling in the u.s. we think we'll see 1.5% to 2% growth in the quarter for u.s. markets. bonds reflective of that to a certain extent in the slower growth, lower for longer market environment but mortgages and surprised in the discussion people aren't separating the dynamic of what happened with the consumer and the private sector in c and

look at lennar. look at pulte.work. 15% of the market, the new homes market, is seeing strong demand. right now in a typical market, average market you have new homes and inventory at roughly 6%. currently as it stands as of today new homes and inventory 4.7%. what's that telling you? there's more demand than there is supply. prices are going to go higher. >> let's talk more about china right now. may be the make or break investment in your portfolio right now. it's certainly one of the topics that we've been focusing on today here at delivering alpha. i want to bring in nathan sandler, co-founder and managing partner. i listened to your presentation earlier. some of the headlines, the takeaways that i had, i'd love to get your response, a solid foundation for growth in the emerging markets. you believe that remains the case. the story has not matured, in your words. it continues to be an opportunity. >> absolutely. i mean, i think the secular story is very much in play. i think, you know, the u.s. is one of 70 cou

earnings from kb home and lennar adding to optimism recently.recovery? we're going to trade the home builders next. mine was earned off vietnam in 1968. over the south pacific in 1943. i got mine in iraq, 2003. usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection, and because usaa's commitment to serve the military, veterans and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. [ male announcer ] introducing a powerful weapon in your fight against bugs. ortho home defense max. with a new continuous spray wand. and a fast acting formula. so you can kill bugs inside, and keep bugs out. guaranteed. ortho home defense max. so you can kill bugs inside, and keep bugs out. guaranteed. this is new york state. we built the first railway, the first trade route to the west, the greatest empires. then, some said, we lost our edge. well today, there's a new new york state. one that's working to attract businesses and create

pulte, toll, kb and lennar. the company responsible for wrangler jeans.ng about asia today. we'll talk with the ceo live in just a moment, discuss the most recent quarter and what exactly is going on in asia. the former ceo of hp, carly fiorina here to talk all things tech to jim chano's shorting hp. and how he thinks the problems can be solved. and fab.com taking the world of online shopping by storm. the one-year-old company is now worth $600 million after its latest round of fund-raising. we'll find out what's next for this hot internet start-up when we talk to the ceo a little bit later this hour. >>> first, though, we're going to start with "squawk on the beat." two household names going public tomorrow. and the price after the bell tonight. what can we expect from kayak and fender? kayla tausch is back at hq with a preview. you're not calling this a deluge. >> i'm not. i think the market is still picky. we'll get to that later. the ipo market is thawing. you can say that after being frozen for about a month due to heavy volatility. likely some was f