home builders are facing a lot of challenges.what is the state of the nation's builders right now, and how are they changing their focus and some of their products? diana olick takes a look. >> reporter: home buyers may be coming back but for the nation's big builders, they are coming back mostly to the higher end move up market. entry level buyers are priced out. >> when they can get in and afford it. i believe that is currently under pressure. >> reporter: that's why the nation's second largest home builder is shifting attention. they acquired cintex during the recession but that's not where the buyers are now. they are heading for the higher end pulte brand. >> i think you have to adjust in our case the overall portfolio to take advantage and perhaps the entry level is not 40 or 50% of the overall market like it used to be, maybe it settles in at 35% or 30 percent. >> reporter: they have increased competition from the single family rental market. those who can't afford large down payments or don't have the credit scores necess

i don't see a whole lot of reasons for the home builders to rise, valuations of the home builders don't make much sense. that would propel the xhb up rather than having home depot fall. one thing that is interesting about home depot it isn't enormously expensive. it's trading at the same multiple as the broader market. this is a name that's been growing eps at close to 20%. so it isn't really overly priced here. but clearly, there is a technical problem, you might be inclined to make a bearish bet. i'm going to go with courter on this one. but i won't do so in such a way that i'm risking a great deal if i'm wrong. just because valuation is okay here. >> mike has a bearish bet on home depot, using a put calendar. we've done these calendars before. it's good to refresh. let's crack open the playbook and see how it works. in the strategy you sell a near dated put and use the money to buy a longer dated put of the same strike. this is a bearish strategy, it requires timing. you want the stock above the strike of the put short by the first expiration and below the strike of the longer dated

those three builders -- >> southwest, sort of -- >> i would say most of the builders if you look at thearkets as they're sometimes called from the west coast into texas and up into the d.c. area, that's where most of -- >> what's a smile market? i've heard of -- what's a smile market? it's not concentrated with dentist and zip code. >> draw a smile across the u.s. map you would get the west coast through the central markets like texas into florida and then up into the east coast. >> these stocks are also all of them are very interest rate sensitive, right? as rates i can assume at some point will continue to move higher or up quite a bit, so which ones would you avoid in that situation? which ones would not withstand that? >> well, interest rate volatility that we have a seen through the summer and early fall has affected all parts of the market. it's not really affecting some builders more than the other ones. the order disappointments that the builders reported for the third quarter were uniform across the sector. >> all right. nishooh appreciate it. >> thank you for having me. >> sim

,t's not bob t builder, shouldou go to hollywood and say i have a wonderful character, can't you make aartoon out of it, is there a film, how do we alter th stereo pe? >> that's what we're trying to do. we're setting a foundion so i hope we can become a feel role model character for girls. we wansomething other than barbie and princesses. someone tha is a inventor that likes making things. >> witut getting too specific, i would say that the wooden locks ar neither a girlr a it is legos with spaceips that may be more of a boytoy. >> iould arguehat every toy is a toy, anyone can play with it. i rely tried to fill in that i wanted girls to love this toy, so iooked into gender differces. knowing if you just tk a construction toy and made it nk, that's not enough. i looked int gender differences, i met with neuroscientis, elementary school teachers, everything i but the big aha is that girls have very strong verbal skls. and they have confidence in rs their reading ability. there is no reading or characters in constructn toys. build i up, smash it down, build it agai girls don't play that

he is a south african builder. i think this guy is one of the premier builders in south africa. he said, listen, do you want to try this guitar? he put the amp up there. i plugged it in. ♪ i just fell in love with it. he built me two. i'm kind of promoting my buddies guitar. there are some great builders there. tavis: it sounds good. it looks great, and it sounds good. >> i feel if i dress better, at least people can talk about my guitar. [laughter] if i sound bad, the guitar is what they talk about. tavis: the guitar is gorgeous. son, polish your shoes. you need a shoeshine. tavis: let me switch to the new project, "merry christmas to you."i'm always fascinated by artists who at various points in their careers decide they want to do a christmas cd. what motivated you doing this at this point in your life? carr, i have dave been on the road within 10 years doing his christmas shows, and i was always the only artist after the show was over sitting at the cd signing table with no christmas record. [laughter] everybody asked me, where is yours? i sang "oh, holy night" and "little d

maryland home builder frank miano felt the pressure personally.e a small builder who had a few spec houses that were sitting. he was paying interest on those. it's a question of staying power. how long can you maintain that unit until it's sold? miano's losses on houses temporarily forced him from the business. we sold some houses at a loss to get out from under the construction loans weinallyid sell them. as lenders cut back home mortgages, new home buyers and sellers became frustrated. even the resale market was affected. maryland wasn't the only state troubled. 18 others had interest rate ceilings. usury laws placed such a strangle hold on housing money that congress wanted to ban them. pressures to change the law mounted. senator laurence levitan sponsored the bill to raise usury limits. we weren't only hearing from lenders and developers during the interest crunch, where the interest rate hit and went above the ceiling. we heard from the average citizen who wanted to buy or sell his house. the ceiling prevented them from entering the marketpl

. >>> and one of of the country's big home builders is where we

and again local builders and this gentleman who's mural has been put here. and i want to thank the group that put together a movie to the day to day lives of do p san francisco. thank you champion mike redman thank you for being here and making this neighborhood a safer place to live and supervisor scott wiener and my supervisor to the west of us on market street thank you for being here as well. >> thank you so much jane and finally, there's a quick sneak peak from our extraordinarily architect he's wonderful he's been working with after the but the core volume is here and heel give you a peak of what's going to be. >> the renovation recess recollects this to provide a hive visible for the cities prominent theatre company ac e t. this will offer lay essentially elements into the backdrop of the building. this will create to inspire a lot of visions. the main performance spaces can be quickly transformed into a formal threat to an informal one. this space up by the small windows to be con founder in a number of ways as classrooms or event spaces. the two-sto

builders are in a tough spot. we think they're building products, stanleyworks, masco, mohawk, fortune brands, they have a much better position headed into '14, even after performing well this year. >> pete, quickly? >> just real curious. mohawk, pushing on 52-week highs. how much more upside is there? can you still get in now? >> dominant player in global flooring with the marquee management team, a lot of upside in this name. some transformative acquisitions. we think the synergies flow through. the estimates next year, including our own, could be low. in europe turns the corner, one-third of the revenue base is there -- >> who has the most margin leverage of the three favorite names? who has the most margin upside and the best pricing power, in other words? >> at this time now, starting from a lower base rate, massco has the most opportunity for margin expansion. fortune's already executed really well. we like mohawk, too, grinding higher, but masco is the name, a turnaround story, which can get revalued by the

well, there are also some positive news in the housing sector, home builder sentiment holding steady at a level of 54 this month. keep in mind, any reading above 50 is a sign of confidence. the data lifting home building stocks today. all right, so let's send it back to nicole petallides covering the action at the new york stock exchange. >> reporter: i wanted to take a look at some of the home builders and how they're faring on the news that we've gotten today. so here's a look at names like powellty, lennar, these are some of the better performers in the group. why is this happening? well, you know you get the home builder sentiment in, and that came in at 54, so that continues to show strength, above that 50 number means that more home builders view conditions as good rather than poor. anything below 50 would be bad. so it was slightly less than what some of the analysts were expecting that 55 number, however, you are seeing the group do well. why is the group doing well overall? points right over to the ted and low more -- to the fed and the low more gauge rates. assuming the fed

anything above 50 means that more builders think the market is good than poor.umber was higher over the summer, and many of the builders surveyed said they are worried that another fight over the federal budget might scare people off. one pocket of housing that has seen consistent growth is modular prefabricated housing. these homes are made and assembled on-site. with blue homes, he said each year since it was founded in 20 2008, his business has doubled. he joins us from his factory, where we has one of these homes behind him. tell me about your business since 2008. you started a business in what might have been one of the worst times to start a housing business. >> well, entrepreneurs think sometimes the best time to start is in the depths of a recession. and we thought there would be a move to quality, question there has been. once the housing market changed people stopped expecting everything to go up always. and they are focusing in a way that has been really good for blue homes. >> tell me about who your buyer once in 2008 and who that buyer has evolved i

riggers and machinery movers, local 377; pile drivers, divers, carpenters, bridge, wharf and dock builders, local union no. 34; plasterers and shophands, local 66; united union of roofers, waterproofers and allied workers, local 40; sheet metal workers international union, local 104; teamsters, local 853, by implementing specified terms and conditions of >> clerk item 32: 130800:[lease - airport concession domestic food and beverage - burger king corporation/gate 74, inc. - $400,320] resolution approving amendment no.1 to the domestic terminal food and beverage lease no. 03-0189 between burger king corporation, and the city and county of san francisco, acting by and through its airport commission, for a term of ten years with a minimum guarantee of approximately $400,320 to commence following board approval, and the assignment of lease no. 03-0189 from burger king corporation to gate 74, inc. >> clerk sf 321234 >> same house same call. this resolution is adopted. next item. >> the clerk: item 3: 130913: [collective bargaining agreement, amendment no. 1 - crafts coalition] sponsor: mayor or

you look at the home depots and builders. this one should be rallying. >> how do you factor this into your view when it comes to mortgage originations? >> those are conflicting things, right? that's clearly good things. southbound like aback of america would be a beneficiary of that. i do want a steeper yield curve. i am not sure what we're going to end up getting. i am long the bank of americas of the world. they make a fee on every transaction. the more transactions there are, that had a very nice move. >> i was chatting by e-mail with the home building analyst. and he said he viewed it as more of a debt balance. the home builders are going after a period where it will be much tougher to balance. what do you think in terms of the trade for the home builders specifically? >> dhi has gotten crushed and seemingly found a bottom. it didn't matter. the stock price reaction was that's what you're looking for. when they start to rally and what could be construed as not great news that's when you have to start to get interesting ag

we're hearing mumblings of possible builder concessions. i want to take a quick look as we turn to mortgages. mortgage delinquencies dropped 23% in q3 to 4.09%, from transunion. it's down 4% on the quarter and this is the seventh straight quarterly decline. the drop is nationwide, but some of the formerly hardest hit states, california, arizona and nevada, are seeing drops of 30 plus percent in borrowers making late payments. the rate is still historically high, but improving. tight underwriting has helped as have rising home prices. mortgage volume, though, is falling and that may mean more nonprime borrowers could get more attention from the banks because the banks want more business. the mortgage bankers today reported that credit availability increased slightly in october, after declining for two straight months. they say some lenders reduced minimum credit scores on certain products. of course more on-line. realtycheck.cnbc. >> top cash rich stocks in this market. we've run screens and have the names for you. plus with stocks sitting a

home builder confidence came an essentially flat.ation of home builders housing market index with 54 in november matching the october reading. down one. the builder confidence gauge has increased 20% over the past year. honda is the top vehicle brand for retaining the highest dollar resell value according to amg, a company that tracks card appreciation. toyota has the most miles overall with the top resell value in a segment. in the former treasury secretary is joining. lange and essential role in the government's response, the private equity fund president and managing director starting on march 1st. that is the latest from the fox business network, giving you the power to prosper. ♪ connell: this is going to be fine. 150th anniversary of president lincoln's gettysburg address and our friend the award winning film maker ken burns here to talk about his new project. dagen: did to see you. already so excited because we were talking to you in a break. you have a film called the address commander would get to that in a minute. what you

what do the nation's biggest home builders think about the health of the housing market right now? diana olick speaking with pulte's ceo just a short while ago. she's here at post nine. good to see you as always. >> you're right. rising mortgage rates are not the only thing playing against the big builders right now as sue said, we have the exclusive opportunity to interview the ceo of pulte homes, one of the nation's largest builders to get his take on why we're seeing this pause in the housing recovery. >> the pause has been caused by rapidly rising rates a few months ago, the government shutdown, i don't think helped anything, and then concerns around affordability as home prices have risen quite a bit. we are still far below long-term averages. i had think we need good job growth in the country to really help the housing market over the long run. >> second in size only to dr horton pulte operates in several categories acquiring entry-level syntex during the recession but now focusing on the move up and higher-end homes in their pulte and active adult dell web divisions. he admi

how long will it last, and what will jump-start things for the builders? >> the pause has been caused by a combination of rapidly rising rates a few months ago. the government shutdown, i don't think helped anything. and then, concerns around affordability as home prices have risen quite a bit. having said that, we are still far below long-term averages, and i actually think we need good job growth in the country to help the housing market. so we're expecting better things come the spring selling season. now's not the traditional best time to sort of evaluate the market. >> you talk about that affordability. pulte homes, the average home price jumped 11% in q3 from a year ago. we're seeing prices up across the board. but some of the builders are now starting to talk about concessions, incentives, things we saw during the recession. do you expect to see that in the early part of 2014 to be offering that, to get more buyers in the door? >> you know, we did an announcement on the third quarter call a couple of weeks ago we had introduced the incentives for th

home builder reported a big rise in sales and that's where we begin tonight's market focus. d.r. horton profit increased 40%. the home builder benefitted from a pickup in home sales as mortgage rates eased a bit in october. the stock popped almost 5% to $18.91. >>> dish network added more subscribers than wall street expected in the third quarter helping lift that stock. the satellite tv provider easily beat revenue estimates. the 35,000 new dish subscribers topped estimates, but the increase was well short of the 135,000 customers that it's rival direct tv tacked on. didn't seem to shake investors much today. the shock jumped 6% to $50.35. >>> and jos. a. bank upped the third quarter outlook thanks to a rise in sales. they aren't set to report earnings until december but the positive outlook two days before the proposed take over bid will expire. shares rose 3.5%. >>> starbucks must pay kraft after the early termination of a grocery deal. starbucks has to pay about a half billion in interest and attorneys fees. the decision came after the closing bell prompting starbucks shares

the builders certainly want to see it. we snow there is a lack of housing supply out there, but there is a lot of investor demand playing into that. investors bought up the homes and want to rent them out. household formation has to take place to get more renters into the market, right? you need to see more households for there to be more demand and for the builders to build more homes and there forget more healthy. was this a weird quarter or a trend to see going forward? >> i know you'll watch it closely for us. thank you so much. for more head to our website, nbr.com. >>> still ahead, one day after sac's guilty plea and j and j's bien fine, they examine how much responsibility a ceo should take when something goes wrong at the company he or she runs. >>> by now, just about every one has heard about twitter's initial public stock offering later this week. but twitter is not alone. 15 other companies are currently having ipos this week, the most for any week since 2006. among the companies going public, barracuda networks

i'm diana olick in washington. >>> and to read more about what is driving the new boom for home builders head to nbr.com. >>> still ahead, ever wonder how the world's largest retailer makes sure the shelves stay stocked on black friday? we got a rare look inside walmart's very complex operation. >>> are you seeing more adds on your mobile phone or home computer these days? that's no accident. seeing a big boost in e commerce sales they will spend more on digital ads than 2012. they will increase spending to almost $10 billion. >>> will all those advertisem t advertisements make you want to spend more this holiday season? nbr asked consumers what their shopping plans are for this holiday season. >> i do my shopping probably the first weeks of december. >> i'll do some department store shopping. i'll do some boutique shopping. >> christmas shopping can happen until right before christmas which is traditional. >> i do a lot of online shopping. >> i shop at stores, and i have problems because i like shopping for myself more than other people. >> with that spending, stores have to be prepared

party for freedom plan their move that's despite reports that builders in the past disapproved of and to submit it remarks by le pen's father while a pen reportedly described the dutch as more radical than she was when it came to islam it was in this restaurant the two of the most confrontational politicians in europe that sat down over a meal and got to know each other and in the end they realized that they had more in common that they might have initially thought so much so that full political parties that claimed patriotism they decided to put their differences aside and pursue an ambitious goal changing europe's grand plan properly. that europeans and the french have understood that the political structure of the defense people have the best seat in the nation but today the decisions are made in brussels and burley in washington reprise they're not made in france and this cannot go on while a potential alliance between far right parties is already stoking fear into some in the e.u. italian premier enrico letta called the growing popularity of euro skeptics and the far right as the

. >> tough week in home builder space. we saw rates up again. we know what happened in the spring with home builders and home sales. i'd stay away for a little bit. >> drop for lululemon down 8%. >> i liked it for a while. as it gets back toward $65, i think it gets interesting. it's an extraordinarily volatile stock. i understand if you don't want to foray into it. 65 bucks, there's a chance this makes a push back up to 80 once again. >> ad hoc pop for steve grasso. finally showed up. he made it through traffic, which has been horrendous because of the marathon. he'll join us later on in the show. all right. coming up next, it's time for trade school, ipos with a huge day, one huge one day gains. >> go ahead. try it again. >> tough to figure out. but our traders are on the case. then ever wonder how your phone knows when you turn on the side. a company makes that and other motion tracking technology possible. stock is up 50% this year, talking to the ceo, and we're going to trade that stock straight ahead on fast. really? what's wrong with tryi