and i would say the names that come most readily to my mind are d.r. horton which we upgraded yesterday, they are the largest builder in the country, they also happen to be very focused on the entry level and are probably one of the most efficient builders out there you can also purchase nvr, kb home and lenar as good ways to target the lower end in all rig . >> all right have to leave is t there. >>> coming up, from porkless pork to wingless wings, the fake meat mania continues we'll tell you whether it is a good strategy. >>> plus goldman sachs is starting to look more like its peers. what the bank just did and what it says about where the industry is headed now. and this biotech stock gained 150% last year, developing a new way to street some cancers the ceo will join us live to talk about it when the exchange returns. is the fund built to sell or built to last? etfs are only part of a portfolio. so make it easy to explain. give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objec

julienned d.r. horton which taylor riggs talked about. scarlet: definitely earnings at play. romaine: let's dive into the action. abigail, get us started. abigail: for those big declines for the major average, it needs the s&p 500 has finally snapped that streak of small moves. it has happened in the past when those streaks of complacency have been broken. big volatility ahead. the charts also suggest that the s&p 500 in relation to its 230 day moving average. it has tended to come back down. we have been making that point recently. 11%, the most over the last year. over the last two days, we now have the s&p 500 coming back down today toward the 200 day moving average. down -- rounding down suggesting we could see a pullback and maybe even the s&p 500 does go down to the 200 day moving average. mike: obviously, the coronavirus has taken all the blame for this selloff and energy companies are the worst performing group because of concern about lower demand for travel. the two biggest decliners over the last two days are very much earnings related stories. both of them are con

you see what happened to d.r. horton.ing up as we see the number of homes being built, the number of homes for sale has fallen. it is difficult for companies, for people to find enough homes. that will keep business going. d.r. horton's orders up 19%. alix: to the cuts do anything? yes. time for our third story. we are looking at tech. the industry's biggest names are reporting this week. valuations are currently at their highest level since 2007. joining us from miami is james cakmak, clockwise capital partners. will we see the numbers in tech earnings back up the evaluations? james: it is interesting. when you look at the valuations from a historical context, only 4% in the history dating back to 1871 have valuations exceeded 25 times earnings. where in one of those times were 60% of the components within the s&p are trading over 25 times. if you look at tech more specifically, we are not in nosebleed territory at the moment. i think that what you're going to see is that the valuations are approaching peak multiples bec

positive, earnings from dr horton the industry has seen a major pickup, since the fed cut, i bet d.r. horton is going to say the same thing if we have any sort of control over the virus, say sunday night, monday, this one could go higher and it could take the whole group with it. on tuesday, huge day, united technologies reports and we're going to get an update on both china where they have a gigantic business, especiallio tis elevators and boeing 737 maxwells talk about transparent, he is that maybe we buy some united technologies on monday if we have a coronavirus based selloff. i want to hear also how the raytheon merger is progressing can 3 m sustain weaknesses, let me put this way, many negatives are finally being baked in but positives have been obscured by this water contamination, which we know is horrendous. i bet you'll see positives, but i'm not jumping up and down. best chance of reporting upside surprise, a stock i don't talk about enough, hca health care. hospital chain it is a delivery machine, you have my blessing to buy it if the market goes down on monday after the close on

side, while the meanings may be washed out, the builders are showing the unusual strength this is d.r. hortont 20 years. not getting enough attention in our work here is that d.r. is finally above the 2005 highs this is a stock that didn't peak in '07 with the market it peaked in '0 a two years before i think we have to at least respect the economic signal that the home builders continue to ac as well as they do one of the most timely in the group go down the cap scale a bit. k.b. home, a yaes era great base that continues to take shape on the verge of breaking out. any build breakthrough out there a opportunity to get long remind build iris the bank get washed out and timely the next couple weeks but the builders send a positive signal. >> chris, why don't you come on back. >> yes. >> guy, adami. >> i don't know if i heard anybody recommend deutsche bank shares in years. we have talked about it in other programs we talked about now problematic the company was. >> it's a bold call. he makes the point no analyst has a problem. i don't think he is saying the deutsche bank problems have been sol

we'll get new home sales figures for december as well as figures from d.r. hortone'll get pending home sales. on thursday it's housing vacancies. i'm join the by ceo and president of united wholesale mortgages. matt, thank you for being with us first of all, i know this may not be your exact area but i'd love to get your take on diana's story about the rising risk and issues about -- let's say just say building on the coast, if it's not sports stadiums in particular. >> obviously, climate makes a difference it's interesting to see -- i didn't know that as much before watching or hearing that story, but definitely impactful as people are building on the coast, whether it's housing on are stadiums, all those things could have an impact definitely something people are watching we'll all watch in the housing and real estate industry across the industry. >> diana brought to us earlier in this year all of these strong numbers for the winter housing market and i know that's still going on she's talked about how it's it's shifted the buying season's peak season potentially

looking to earnings next week, a huge week for earnings monday we hear fl whirlpool and d.r. hortoncks, ebay. 3 mis pfizer and boeing, mcdonald's and mond leisure. thursday coca-cola, amazon and viza friday cat, chevron, exon amongst names reporting. huge, the tech names overseas in particular just because of the impact on the index and the run they've had. >> and the run they've had the setup for them is demanding perhaps in terms of upside surprises. but i think it's coming as a welcome thing if earnings take the focus away from the bigger picture stuff we've been dealing with i think the context matters. we have a 1% pullback from a record high. right now nothing but routine. but it seems as if the macrowinds are blowing in the direction of saying we have to question the premises we had coming in. >> interested to hear what whirlpool said because they have hit hard in the trade war. we'll be interested in that. and las vegas sands reports on wednesday and that's really going to be our first chance to hear from the company about what's happening in macau and corona vierds and i'm

we look back at a brief economic dip >> why not buy the stocks that are not going to be affected d.r. horton is down. that was a remarkable quarter, really fantastic home builder, does seem right. there's an article, piece today recommending facebook. where is facebook in terms of the hierarchy of china nowhere. do you go and buy alibaba? arguably maybe >> it's getting hit today. >> the airlines were down 28%, the hotel company is down 25%, 30% during sars, and sars is so far not as viral, but certainly -- >> the latest outbreak is less lethal >> thisis more contagious than sars but not as deadly >> like i'm so pro, i feel like an idiot, this is mott my thing. lancet had numbers showed a lot of people recover and they just recover but the older people don't recover, because it's very hard >> this is typical of the flu as well >> right that's all -- you get pneumonia in the hospital, and you're older, there's a great chance that you're going to die >> the most, the newest wrinkle this morning is the suggestion that it's asymptomatic transmission, meaning you might be contagious and not showin

sales for 2020 due to that shortage of homes for sale on a brighter note though both pulte and d.r. hortonorted earnings this week and strong gains in their entry level homes. carl >> thank you for that. good wednesday morning everybody. welcome back to "squawk on the street." i'm carl quintanilla with sara eisen and david faber at the new york stock exchange. markets losing a little steam here dow up 51. we were up 200 plus at the open on the busiest day for earnings season and of course fed day >> our road map begins with the earnings parade. mcdonald's, boeing, ge among the more than 40 s&p 500 companies reporting. stocks rallying but off session highs. >> it is the world's largest company. apple shares hit an all-time high but should investors be cautious of looming china risks? >> goldman sachs is holding its first ever investor day at the new york city headquarters not far from here. we'll take you there live. >> as we said we are in the middle of the busiest earnings week, 44 s&p 500 companies reporting. we've got you covered here on cnbc our phil lebeau is covering boeing's big los

you look at the stocks today, look at d.r. horton, they are up pretty good.tion stocks up about 50%. i think that's going to be a major contributor to gdp. i also think business investment comes back. the big question mark will be oil and you know, the structures for oil, that holds us back, but i.p. and equipment, are huge. then of course there's the consumer. on friday, when the dow was down 234 points, of the top 20 stocks, the top stocks, 19 were consumer discretionary. if you take a look at how much money we save, we are at 7.9% savings, $9.8 trillion. americans have dry powder. i think they will be more confident to spend it as long as wages are going up. i see a tight labor market making 3% gdp, 4% wage growth. paradise. stuart: not quite. charles: a few bumps in the road. that's all. some we know, some we don't know. stuart: last one, bill gates, he's pushing for higher taxes on the rich. what do you make of that? charles: listen, bill gates is one of these guys who has put his money where his mouth is, unlike a lot of -- you know, there's a whole bun