diana olick, an important story.out a new warehouse built on the side of the highway thank you. >>> on deck, futures are tumbling down 300 on the dow is it all the fed or something else jon najarian is here with his insight. stick around tailor made or one size fits all? made to order or ready to go? with a hybrid, you don't have to choose. that's why insurers are going hybrid with ibm. with watson on a hybrid cloud they can use ai to help predict client needs and get the data they need to quickly design coverage for each one. businesses that want personalization and speed are going with a smarter hybrid cloud using the technology and expertise of ibm. nice bumping into you. make fitness routine with pure protein. high protein. low sugar. tastes great! high protein. low sugar. so good. high protein. low sugar. mmm, birthday cake. try pure protein shakes. with vitamins and minerals for immune support. ♪ with vitamins and minerals someone once told me, that i should get used to people staring. so i did. it's okay, you

could climate change be playing a role to disrupt the global supply chain our diana olick breaks down the consequences when "powerun" tus. lch and want to make the right moves fast... get decision tech from fidelity. [ cellphone vibrates ] you'll get proactive alerts for market events before they happen... and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity. what happens when we welcome change? for smarter trading decisions, we can make emergency medicine possible at 40,000 feet. instead of burning our past for power, we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more inclusive than ever. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change. faster. vmware. welcome change. >>> welcome back i'm rahal solomon. several office buildings on capitol hill have been evacuated as police investigate an active bomb threat. a north carolina man is in custody according to nbc news.

coming up on the show, the red hot housing market spilling over into the rental side of things diana olicking shape with renters, but first as we head out to break, some of your other top stories amazon has been awarded a $10 billion cloud computing contract by the national security agency, the nsa, according to reports. the contract, which is already being challenged by microsoft as a part of the agency's efforts to modernize its repository for classified data. >>> china has sentenced canadian businessman michael spavor after finding him guilty of espionage, 11 years in prison it's a retaliatory move for canada's detention of huawei executive mang sws wen jo. stevie nicks is canceling the remainder of the 2021 orwi ehae"es "wlddexcng is back in just a moment. ggle to get reliae transportation to their medical appointments. that's why i started medhaul. citi launched the impact fund to invest in both women and entrepreneurs of color like me, so i can realize my vision and give everything i've got to my company, and my community. i got you. for the love of people. for the love of community.

diana olick joining us tonight >> reporter: yeah, no question students want to be here campus even ifuire vaccinations now these apartment buildings are filling up and some of them are amenity heavy like this one from the scion group at the university of maryland, high-end kitchen, swimming pool, game room, even peloton bikes in the private gym. no wonder demand is high so high that the supply of student housing is low and construction is now climbing again. in july, student housing prelease rates hit 86.7% across the core, 175 universities covered by real page, that's higher than last year but also higher than july of 2019's prepandemic reading. from june to july of this year preleasing jumped nearly 10%, the largest monthly jump recorded this late in the season in several years so it'svery likely august leasing will cross 90%. as for rent, growing too also its highest rate in july up 2.1% annually led by properties more than one mile from campus and that growth is higher thanlast year as well as 2019 rates now, there is just one publicly traded student housing reads american housing

diana olick continues her reporting as part of the series "climate consequences. >> reporter: wildfires in the american west, flooding in europe, and drought in south america are all disrupting supplies of everything from lumber, chocolate, to sushi rice. >> an agriculture sector, or in the tech sector, there is really no particular sector that is immune from climate change. >> reporter: witness how the increase in named storms over the past three years has extended the areas of disruption dramatically while this hurricane season is just getting started, there are already climate-related disruptions. for example, lumber. canada-based corporation just announced the western wildfires are significantly impacting the supply chain and our ability to transport product to market. as a result, we are implementing short-term production curtailments at our canadian saw mills. prolonged drought in brazil has caused the price of coffee to nearly double in the last year and sushi rice, two-thirds of america's is grown in california, which is now having water issues due both to drought and the wildfi

country but now it is not just buyers getting in on the panic buying renters doing the same thing diana olickh that and whether the red hot real estate market is showing any signs of cooling down. what are you seeing? >> well, brian, we get two important reads on housing market next week and the story there is rising costs for building materials builder sentiment is falling due to the price spike in lumber and other materials and a new report out this week showed little relief building material prices have increased 13% year-to-date in stark contrast with the same period last year when prices were up just over 1% and 1% has been the average going back five years. now lumber prices, yes, they have fallen, about 70% from the peak in may. but they are still 66% higher than the last low if march of 2020 and that is inflating new home and remodels for homeowners as the prices continue to gain at the fastest pace in 42 years. up over 17% in june year-over-year and we have a read on rents, for a one bedroom, up 7% from a year ago and for single family rental homes in may rent jumped well over 6% and

here is cnbc's diana olick. >> reporter: climate change and its devastating impacts are acceleratingding to the u.n. climate report out this month and yet fema's national floo insurance program hasn't changed at all since its inception, but it is about to starting in october, the nifp's insurance pricing, finally factoring in climate change. as of now, federal flood insurance is based on a property's 1% annual chance of flooding and its elevation under the new model, fema will also look at the home's replacement cost, whether the risk is rainfall, river or coastal flooding and how close the property is to the source of that potential flooding. and most importantly, fema will now factor in future catastrophic modeling from climate change, including sea level rise, drought and wildfires. >> it's a complete transformation of the way that we're developing what your risk is for your property, and then price it accordingly >> reporter: because as of right now, someone in florida with a $1 million home and someone in montana with a $200,000 home are paying the same rate for insurance, even

li cnbc you can ow real estate correspondenl home diana olick.trange as it sounds, for less than $100 you can own single family rental homes or at least invest in a fund that owns the homes >> the power of real estate investing is now in the palm of your hand. >> reporter: it's a new offering from fund rise which started back in 2012 as a crowd funding platform for commercial real estate the company is now buying thousands of brand new homes from builders like d.r. horton, turning them into rentals and offering the rental returns to small investors through a new fund it's a half billion dollar investment backed by goldman sachs. >> what fundrise does is allow them to get access to private real estate at the same if not better terms as institutions that literally never happened before >> reporter: and institutions are upping the ante.s are upping the invitation homes just announced a deal to buy brand new homes from pulte group so fundrise is a way to compete. there is a red flag. this is not a quick trade. >> it's meant to be long-term investment

diana olick has the story of sky rocketing rentals for us diana? and housing shortage land landlords are seeing bidding wars and dollar signs normally reserved for home buyers. >> we've been leasing property for almost 20 years and haven't seen an applicant pool this competitive since we started. >> reporter: just a week ago vipin motwani put this on the house and had 20 offers. rents for single-family homes in may jumped 6.6% year over year that's nearly four times the annual increase seen in may of last year. all real estate is local in the first half of this year, new york city saw its rent applications double, compared with 2020. san francisco saw a 79% increase, seattle, 55% jump. all that, according to rent cafe meanwhile, boston saw only a 5% gain charlotte up 8% and portland, oregon, up 9%. >> the rental papplications we'e getting right now, you're seeing higher credit scores, applicants willing to put down more in terms of security deposit. you're seeing strong rental history as well. that wasn't necessarily the case precovid. >> reporter:

diana olick explains in "climate consequences." >> reporter: climate change and its devastating impacts accelerating faster than ever. according to the u.n.'s new climate report out this month. and yet fema's national flood insurance program hasn't changed at all since its inception but it is about to starting in october, the nfip's insurance pricing will reflect a property's unique flood risk, finally factoring in climate change as of now, federal flood insurance is based on a property's 1% annual chance of flooding and its elevation under the new model, fema will also look at the home's replacement cost, whether the risk is rainfall, river or coastal flooding and how close the property is to the source of that potential flooding. and most importantly, fema will now factor in future catastrophic modeling from climate change, including sea level rise, drought and wildfires. >> it's a complete transformation of the way that we're developing what your risk is for your property and then price it accordingly >> reporter: as of now, someone in florida with a million-dollar home and someone i

, reducing damage from wildfires but is it enough investment to really make a difference cnbc's diana olickate change consequences >> reporter: federal firefighters now battling the explosive number of blazes in california make less than the state's minimum wage, far less than state firefighters. a pittance compared with mortal risks they take. >> wild land firefighters are truly at the frontlines of dealing with effects of climate change they are currently underpaid and poorly equipped. >> reporter: that is expected to change if the house approves the infrastructure bill. $600 million will go to raising the wages. it will raise salaries for forest service by as much as 50%, and make about 1,000 seasonal fire fighting jobs permanent. after this stark reminder last winter in texas how vulnerable the aging electrical grid is to more severe weather, the bill carves out $73 billion to make it not only more sustainable but to protect it. >> critical investments to combat climate change and build a clean energy future. >> reporter: and 3.5 billion to reduce energy costs for low income households

diana olick is here with the details. >> reporter: no question students want to be near campus.rsities require vaccinations, the apartment buildings are filling up in july, 175 universities covered by real page, 86.7% is higher than last year. from june to july this year preleasing jumped 10%, the largest monthly jump. >> reporter:ed this late in the season in several years so it's very likely august leasing will cross 90%. as for renting growth, up 2.1% annually this is for properties more than one mile from campus that growth is higher than last year and 2019 rates. now, there is just one publicly stu traded student reit. it has surpassed its pre-pandemic high. another survey from township, a los angeles-based real estate private equity firm, found 70% of students remained in off campus housing even after they transferred to online learning this past spring. >> even though these can be pretty expensive >> yeah, they're very pricey look, a lot of parents actually saved money last year because their students were kept at home online and so they didn't pay room and board so they

now getting into bidding wars with others on skyrocketing rentals, cnbc real estate correspondent diana olicko start a job he toured about 15 apartments but lost the ones he wanted due to fierce competition. he ended up in a smaller, pricier place. >> it was terrible if i'm being completely honest, i spent the entire day going around to different apartments, getting tours. in the middle of tours i would have the tour guide looking through the list of apartments, all of a sudden they'd say, "oh, this one's got an application in already. >> reporter: a new phenomenon as today's pricey housing market has would-be home buyers back in rentals. >> we've been leasing properties almost 20 years, and we haven't seen an applicant pool this competitive since we've started. >> reporter: vivin put this maryland townhouse on the rental market a few weeks ago and had 20 showings and 10 offers, tenants offering over asking price. landlords are following suit in july, rents nationally rose 7% year over year for one-bedroom apartments and nearly 9% for two bedrooms, up from 5% and 6.5% annual gains in june ren

diana olick has part three of her series, "climate consequences." >> federal firefighters now battlings than the minimum ways and far less than state firefighters a pittance >> firefighters are truly at the front lines of deal with the climb change of they are currently underpaid and poorly equipped. >> reporter: that is expected to change, if the house approves the infrastructure bill, $600 million will go toward raising those wages. it will also raise salaries for the forest service after the stark reminder in texas how vulnerable the aging electrical grid is, the bill caves out $73 billion to make it more sustainable, but also to protect it. >> critical investments combat climate change, to build a clean energy future. >> reporter: there's also $3.5 billion to reduce energy cost foss low-income households funding forest thinning and restoration. as the risk of flooding rises, the bill provides $12 billion for fema flood mitigation grants, to increase coastal resilience and improve flood mapping. >> i think it could be characterized as a down payment in addressing climate change the

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but could the fed slow down the hot housing market we asked diana olick to take a look >> after moreows set last year, the average rate on the most popular mortgage, the hurt-year fixed has moved in a low and narrow range for the last several months that may be about to change depending on what the federal reserve decides about how much it needs to prop up the economy. mortgage rates do not follow the federal funds rate they loosely track the yield on the ten-year treasury, which does react to fed moves. more importantly, though, mortgage rates are tied to the demand for mortgage backed bonds which the fed has been buying heavily since the start of the pandemic as part of its economic stimulus the fed has said it will start tapering those purchases as the economy improves when that does happen, yields for mbs will rise and mortgage rates will follow. so what happens to housing well, the incredible boon we have siege in the last year is already cooling because prices are so high. up 18% in july from a year ago for both new and existing homes. normal annual appreciation is generally ar

row, we had for upgrade their guidance >> we saw the weakest sentiment survey in about a year, diana olickana? >> the street was expecting a small drop, but not five points on the monthly index that sent the home construction eff down around 3%, along with big names lie len nnar. the price of lumber has come down dramatically, down over 72% from the peak in may, but other availability of other materials are still way up that's trickling down in the i remember of stick are shock, which of course is hurting demand for those homes back to you guys. >> thanks so much for that katie, i wonder what you've been making of either of these stocks or commodities like lumber. >> you know, it's a corrective phase. they had a nice relief rally and now that rally is losing team. same it's a broad-based top-down move and that's very northerlial. pullbacks tend to leave no stocks unturned, if you want to say it that way, but the home builders look bullish to me. so i would be considering adding into the weakness that's associated with this top-down move and airlines are all falling 2% to 3%. casino stocks

. >> thank you, diana olick with those numbers. we'll see how it opening tomorrow morning, but down as much as 12%. >> this was always a concern with the stock it was going forward for the bike sales, which have been so strong, but steph, what do you do with the stock remember, you mentioned it, the stock did rally on the tread presumption, it was up 7% it's an ultimate stay-at-home stock. it was a great stock last year, and it was a benefit from stay-at-home. >>> the others thing is this was one of the best quarters in the company's history. they're taking advantage of the digit at expansion around the globe, talking about how they have 55 million subscribers, half the fortune 500 companies, and now raising margin guidance to 21% the stock is jumping >>> don't miss jim cramer's interview with them tonight at "mad money." >> i actually think the key data point was the decrease in pricing. it's positioned as a growth story. and connected fitness, but once you start to reduce pricing on the books, now we have doubt as to whether ther

. >>> let's move to existing home sales, which rose for a second straight month in july diana olick hash, up just 1.5%, and the comps are getting tougher because of that huge spike in housing we saw last summer inventory was still down 12%, that's a smaller annual drop price is still hot, up 18% part of that is really because all of the sales are on the higher end homeowner stocks did not participate. that's less about existing hole sales, likely more on inflation issues we'll get new home sales for tomorrow and i'm sure the stocks will react to that back to you guys >> diana, thank you. >>> teaming up to create saxwork. coming up, the president of saxwork. and later we'll look ahead to tomorrow's earnings and what investors need to know about those reports in particular. we'll be back in a couple minutes. coolest trucks there are on the road. on my routes on a daily basis i might have 1,100 to 1,400 stops which to me that's 1,100 opportunities to connect with my customers. everyday is another chance to bring a smile to someone's face, and that's what makes me excited about tomorrow. ze

diana olick has that. >> david, pending home sales in july down 11.8%. pending sales down 8.5% year over year. last summer we saw that huge spike after the initial shutdown due to covid signed contracts, these are for pending home sales, representing closings in the next two months. regionally the northeast sales were down the most, 17%. the only region they were up month to month were in the west, up 2%. now, mortgage rates shav hould helped in july, started over 3% and fell to just below 3% by the end. month but it was not enough because of those high prices and low supply the market may be starting to cool slightly and we have already heard that, of course, anecdotally from open houses and realtors in august so again pending home sales a disappointment thank you. >>> we are 30 minutes into the trading session. here are our three big movers we are watching this monday morning. we start with the firm holdings. soaring after announce ago partnership with amazon that will allow amazon customers to pay for purchases over $50 or more shares of affirm up nea

. >> diana olick, it's a longer conversation i'm fascinated there are so many other issues related tovate insurance more to come thanks becky, over to you >>> thanks, andrew wait a second. looks like target's numbers are just hitting let's get to these before we go to a break want to take a look quickly. earnings are just out from target adjusted earnings a share came in at $3.64 a share. the street was only looking for $3.49. revenue also slightly above and then you have the comp sales, up 8 mown be point 9% versus 8.9. that's at the high end of the private guidance it's looking at the full year margin rate to be higher a lot of the numbers you'll watch. i'm not entirely sure why the stock is down. i tonight see any numbers that aren't better than expectations. similar to with home depot and walmart. let me talk a little bit more about the numbers. the cominp sales were up 8.7% they say it was driven almost entirely by traffic, more people coming back into stores. comps with 8.7% and came on top of 10.9% last year digital comp sales grew as well. a year ago is when people weren't goi

today shedding light on the real estate market and whether it's showing any signs of cooling off diana olickas the details there. >> disappointing read on housing starts didn't hurt the home building stocks most in the green likely due to better earnings from lowe's. single family housing starts fell 4.5% for the month, although still up nearly 12% year over year permits which are an indication of future construction fell nearly 2% for the month and up just 5.5% annually and i want to throw in another data point we don't usually talk about and that is houses permit bud not yet started. those are up 56% from a year ago. and that's just a start indicator of how they are slowing because of soaring costs for labor and materials. we saw that in the larger than expected drop in home builder sentiment. the lowest level in over a year. back to you guys >> did things just get too hot is that why we're seeing all of these pullbacks in the data? >> it's a combination of prices, definitely just got too hot. affordable eight weakened and the home builders were unable to bring the prices back because of s

diana. you've been all over it. housing costs. of course, how that factors into the broader inflation debate thanks for the report, diane olick. >>>this year as the credit reporting company makes a slew of acrizigss, including its second largest ever just this week of a fraud prevention firm. we'll talk with the ceo about the buying spree and protecting customer data. >>> as we head to break, here's a check on bonds yields pulling become a little the 10-year still holding above 1.3% we'll be right back. - [announcer] if you've tried college but never finished, snhu let's you transfer up to 90 credits toward your bachelor's degree. - [woman] it doesn't matter how old you are, you can do it. you can finish. - [announcer] finish your degree at snhu.edu. ♪ someone once told me, that i should get used to people staring. so i did. it's okay, you can stare. when you're a two-time gold medalist, it comes with the territory. you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. vis