i like john's d.r. horton trade. i.b. zellman updated d.r. horton as well. >> let's go to sue ha rer ra now with the headlines >> hello, everyone, here's what's happening at this hour. >>> a fired florida police officer was found guilty of manslaughter and attempted murder for the fatal 2015 shooting oafter stranded black motorist newman raja becomes the first officer in that state to be convicted of an on-duty shooting in 30 years. he faces a mandatory minimum sentence of 25 years >>> police say one civilian was killed and 30 others injured in an indian controlled portion of kashmir. in the past, indian authorities blamed rebels fight eight begins indian rule in that region for similar grenade attacks. >>> russia's military releasing image of a fighter jet over the baltic sea the defense ministry did not say when that incident happened. >>> and another milestone for los angeles laker's star lebron james, last night against the den jver rockets. he moved past michael jordan the top three scorers, kareem abdul ja par, carl malone and kobe bryan

builders themselves, which are a subset of that, are much, much cheaper names like lenar, poly, d.r. hortonding at about 10 times earnings, a cheap group. take a look at something that happened earlier this week, in the semis, we talked about micron, this is an area we knew there was a lot of pressure. stocks have been hit because of pressures. we got earnings, which wasn't particularly spectacular, yet the stocks did pretty col coming off that the same could happen in the home builders here lennar, the thing they cited was race that's what they were talking about when they talked about pressure they were looking at compressing margins. if rates come in, those margins don't have to compress you could see more home sales in and new homes sales numbers. instead of the information we got today, which was generally positive i was looking at xhb because the implied volatility hasn't gone that much higher it is higher in in smams because they're reporting. the june 38 calls, those are essentially at the money, $1.50. this is a trade you can try to be nimble. if we see further pressure in the mark

names like lennar, d.r. horton is probably trading at 10 times earnings so it's a cheap, cheap group. we can look at what happened earlier this week. we look at what happened in the semis. this is another area we knew there was a lot of pressure. the stocks have been hit because of those fundamental pressures then we got earnings which wasn't particularly spectacular and the stocks did pretty well coming off of that i think the same thing could happen with the home builders. think about lennar what they were talking about when they talked about pressure, they were looking at compressing margins. if rates come in, the margins don't have to compress we'll find out next week in terms of permits and new home sales numbers. the information we got today was generally positive i was looking at hxb because the implied volatility hasn't gone that much higher it is higher in names like lennar because they're reporting. look out at the june 38 calls at the money, about $1.50 this is a trade you can try to be nimble. if we see

d.r. horton, peltier, the group is up 1.8%. does that have to do with rates, or a separate story? homebuilders. barry: we have clearly seen with income somewhat lagging, the price gains in houses affected or affordability even when the mortgage rate hit 5%, you saw a severe drop in homebuilder , although starts prince have held up well. also shortages of labor. as the yield came down on the , we have seenear a rebound in the builders, which is something i've been talking about for a few months. i was not overdue that. bounce that is just a after being pummeled quite aggressively. vonnie: we get a lot more high-frequency data this week including payrolls. what is your outlook for u.s. growth, wage growth in particular this friday? barry: if you look at wage growth running in the low three , on and after pce inflation basis, the real wage growth was not a different the last two cycles. i'm not sure how much employers and employees really look through it and say what is your real wage growth per hour, not what is your nominal wage growth per hour. but i don't see that much upside des

you buy this, you're owning the home builders, lennar and d.r. horton xhb equal weighted peripherally related to home building, what's the right way to play it >> if you're looking at a theme, not a sector, the cap weighting may help you the equal weighted spreads you out thin across home depot and lowe's and firms you may not think of as being home building. >> we'll keep an eye on all of that for more on the latest etf trends with the biggest unicorn set to go public head over to etfedge.cnbc.com for our live show >>> we're back, there's the major averages, back in the red, russell has turned green let's wrap up apple. here's what i don't get. any other company out there, that if you made a vociferous a indication as you did, not innovating, don't like the ceo, you wouldn't go anywhere near the stock. you always own the stock, because the stock has generally always gone up >> at the end of the day, i analyze stocks that's what i do, right? i analyze companies, but i do that to get to stock i got at least three people. >> you love apple you hate the co

catch it from the housing market picking up substantially look at these stocks today pulte up 3%, d.r. horton up 3.5 pushing towards 4% the comebacks these have made from the beginning of the year when you look where these home builders have come from, they are moving like that because they believe that people that are buying homes will go back to buying homes the people that were pushed off to the sidelines, so in other words i'm saying loan demand and i'm not just talking about auto which we talk about as a negative from time to time because of some of the folks that are falling behind. >> you make the argument housing will be the savior of the economy? >> no, the economy doesn't need saving i'm saying that the banks are going to see a significant lift from housing coming back that's what i'm saying, demand for loans. >> hold on sorry. >> ed, i know you've got to split. your last point. i'll let you bounce. >> the last point is that the bond market has a flat yield curve which is worrying some people about recession on the other hand, the credit spread supervise narrowed dramatically which