diana olick is back tonight with another installment of her series on the rising risks to ate.truction from 5 category hurricane michael was breathtaking, but this one image had homeowners and builders alike in awe. one home left relatively unscathed on florida's mexico beach. total devastation for miles in every direction. >> russell king built this two-story house a few years ago with hurricaneinds notust in mind, but in every aspect of the design. it hs 12 feet above the ground and it's anchored 28 feet into the ground. >> i'd like a better chance of finding the storm. >> now seven monthslater, king says it is not enough. >> the storm, in my opinion, from what i see getting stronger. >> he learned from michael and is upgrading his home yet again. >> all of this was a newnd it wasn't there and all of that is new and that happened last month and all of these light fixtures are all going ay. every one of them and they're to make way to put in something else probablyer p where we don't have concrete that will shift against these columns. >> king is fortifying the house well beyo

contessa brewer is with the lobstermen in massachusetts and diana olick reports on the home remodelinginess in shington and we begin with jane wells at ground zero for chine import, the port of los angeles. >> yeah, you know, a funny thing is happening in th trade war between the u.s. and china, companies aorking around the tariffs. how? >> the chinese factorywn might a production site in vietnam and they simply move the production from china totn v and the chinese factory still makes the profit, but the u.s. impoer is t taxed because the goods are coming out of vietnam. >> okay. let me throw out new numbers in this trade war. according to a congressional group which monitors u.s.-china trade during theirst quarter, u.s. exports to china fell almo 20% but check this out. at the sam utime overall,. exports grew t.3%. hina is not buying as much of our stuff someones. >> we are seeing more goods out of the southeast asia and not nearly enough to make up for the ch. a busine >> the ports themselves meanwhile, are doing fine along the pacific, l.a.'s container traffic is up almost 5% year t

diana olick is in irvine, california. >> reporter: fromhe outside, these look like your basic california condos. 44 units. inside, they're actually zero. net zero, meaning they produce much energy as they use. >> the family is more challenging,ecse you don't have as much space for solar collectors. it's a tighter site. the land is more constrained, so it's a lot more complicated to execute. >> the first large scale production builder toove into net zero. it's all electric. using energy efficient lighting, appliances and hvac and heat pump water heaters. it's built using spray foam insulation, not just in the attic, but in the walls, making the interior much tighter, so heating and cooling are more efficient. efficiency, high solar panels. the development is using new rules from the state'sublic utility commission that allow output to be distruted to individual homeowners throughout the complex. >> even sunny california is not sungny every day, when the sun is shining, the solar system produces more energy than is needed and that energy is sold back to the utility company and the homeowne

diana olick explains. >> potential homebuyers out shopping in april should have had a lot of incentive to sign deals. low mortgage rat and cooling prices, but they didn't. signed contracts to buy existing homes fell unexpectedly compared to march and were lower than apri of last year a that's the 16th straight month of annualeecline. whil they were shopping the annual fixed was relatively know ehanged down 5% last fall. home prices w still higher than a year ago, but the gains were smaller. both are a double-edged sword. >> house prices have been slowing so they don't want ton step if they think there might be an outright decline. they don't want to catch a falling knife, so to speak, but if they think rates t are going be down for a while and they'll say i'll wait until aouse that fits my profill is available because rates don't seem to be going anywhere. >> rates went lower in may and this year fell to the lowest level in a year and a half, 3.99% according to freddiema the trouble is there are too few ale.r priced homes for supply is plentiful on the high end and tight on the low end

i'm diana olick in washington.al reserve official says it should welcome a modest rise in inflation d an n't say whether interest rates would be cut in order to support a rise in prices and the economy appears healthy and the labor market strong. separately minneapolis neel kashkari said the central bank should not have been raising interest rates for the past few years. o called monetary policy tight. >> each with the interest rates it might be too low if you look at the interest rates thom credt cardnies are charging, rischel solomon explains. surprising come as a that according to the new york fed, credit card delinquency rates are rising andhat could be because credit card interest rates are also rising. 17% on average. that's the highest they've been in almost 25 years. buye rates started with a law passeds by congrn 2009 which limited a bank's ability to raise credit card rates on current customers. the consequence was many banks started new custome at a higher initial rate. >> when the fed starts to raise, s

for "nightly business report" i'm diana olick in washington. >> a positive sign from the economy camerom the report on consumer confidence today that shows americans remain optimistic according to the confidence report consumers are upbeat about the labor market and appear to be brushing off the prolonged trade dispute for china at least for now. >> but the ceo of jp morgan chase called today the trade dispute a real issue that could damage corporate confidence. jamie dimon says the trade dispute has gone from bng a skirmish to being far more important than that. if this goes south in a bad way, he said, youth have surprises and that could be a part of the thing that changes nfidence and changes people's willingness to invest. >> and with no trade talks scheduled, neither the u.s. nor china appears to be softening itstance. eunice yun reports tonight from beijing. ♪ ♪ >> president trump says the n u. ready for a trade deal and china says it has conditions,oo. the foreign ministry said they want negotiations to be conductedls as eqnd with mutual respect and so far all of te signs aret

for yo"nightly business report" i'm diana olick in washington.company top expectations ands where we begin the market focus. >> after the bell the company had better-than-expected results thanks to strong sales of the blockbuster treatment embrel. overall revenue was flat, but enough to beat estimates. the company is also raising the lower end of the full-year guidance and the was volatile in initial after-hours session and it closed down 1% to 179.32. general motors reported better than expec to decreased cost of more expensive truck, suvs and crossover vehicles and the automaker missed revenue estimates sliding market share. ceo mary barra said her company is staying focused on the future. >> gm has an industry-leading truck franchise and industry-leang electrification capability. i assure you, we will not cede front.dership on either we intend to have an all-electric future including full-size pickups and we will share additional information when competitivelyro ah at. >>> shares fell more than to 38.95. >>> a rise in online transactionses hel

diana olick has more. >> madison wisconsin is suddenly teaming with millennials, garec rome just boughtre. >> when you're walking around madison downtown and going to coffee shops you seeop young all over the place. madison ranks among the top markets for millennials thanks for itsou share of red dents and millennials moving in according to the new survey o the nationa association of realtors. three out of four recent tranlants to madisonere millennials and they've mostly stayed in the area thanks to a new tech economy >> i think one of the principal dustries is technology. we have epic systems in verona and i work in a tech c spany in thare and it's really cool to be able to be involved in the tech sector while still living in the heartland of wisconsin. >> other surprising new millennial metro, okloma city grand rapids, omaha, durham, north carolina, el paso and salt lake city. in the majority of the top ten market, home prices are also generallylower. based on average income, millennials in these markets can afford to buy one out of every four homesisd for sale. in oklahoma city they

diana olick. >>> up next, we're "on the money.ilitary families make personal sacrifices to serve, but financial stress and debt can add up while they're deployed. money advice for those on active duty >>> and later, planning a summer vacation but don't know where to go we'll help you find the perfect spot that won't break the bank the wifi that set the standard, just raised the bar again. introducing xfinity xfi advantage. it comes with everything you love about xfi. the best speed, coverage and control. but it doesn't stop there, you also get enhanced network security, safer browsing, and more. plus it helps to optimize your network's performance. giving you the best coverage from attic to basement. so you can focus on streaming your favorites. not finding a signal. make the best wifi even better,with xfi advantage. simple, easy, awesome. ♪ >>> those serving in our military train every day to be physically ready for their mission, but their financial fitness may not be what it should be. according to the national foundation for c

for "nightlyusiness report ", i'm diana olick in washington?ook at the day on wall street. the dow had been down 240 points and the nasdaq was down122 and the s&p 500 slid by 34 and i guess you plablame trade. >> i think so. that's the theme. that's it for "nightly business report "qwest. i'm sue ilrera. >> i'm griffth. see you tomorrow. ♪ ♪ announcer: this is "bbc world news america." ♪ >> funding of this presentation is made possle by the freeman foundation, and judy and peterlum-kovler foundation, pursuing solutions for america's neglecd needs. >> wow, that is unbelievable. ♪' 'm flying!♪ ♪

diana olick speaks to him now at the mortgage bankers conference and a first on cnbc interview. porter: hi, tyler and just told a room full of mortgage bankers that the status quo is no longer an option. it is over and he's here to explain thanks so much for joining us. talking about fannie mae and freddie mac conservatorship. they need to be applied to come out of that, they already paid $100 billion. >> build capital, you need to be able to end the sweeps to retain earnings that's start number one. emphasize, however, still in negotiations with treasuries and looking for the administration's plan not calendar dependent it's process. >> so no win but you just lost the chief adviser on that. craig phillips just resigned is that going to slow down the process of taking them out >> i hope not. my understanding is that the report is done, secretary mnuchin and i have a long working relationship and i was with the vice president. i'm absolutely confident that secretary mnuchin and i can get to a good agreement. >> you said changing the treasury sweep would not be good enough but reca

diana olick explains why hi, di >> hi, ty.ig drop in mortgage rates this week concern and uncertainty have investors rushing into the bond market mortgage rates loosely follow the yield on the 10-year treasury so the average rate on a 30-year fixed is now just below that emotional 4% mark. it was just over 4 1/2% a year ago and over 5% last fall. now, this benefits current homeowners who he might want to refi and potential home buyers who are still facing high home prices but prices for new homes could now go even higher mexico supplies a lot of the materials used to build large apartment buildings as well as single-family homes. it represents 11% of u.s. steel imports according to international trade administration data. steel is big in commercial construction as well as home renovations. mexico is also the fifth largest supplier of cement to the u.s., about $110 million worth last year and pickup trucks are a huge part of home construction. there are a couple on the street here and remodeling as well any increased costs ther

diana olick explains the ripple effect. >> they had investors rushing into the bond market causing theen-year treasury yield to drop and mortgage rates took a deep dive. the average 30 year fixed fell sharply compared to 4.29% at the start of the month, while that may not seem like a lot, today's homebuyers are incredibly rate sensitive because home prices are so high, they're already stretched and that's why stocks at the homebuilders e still tied to rates and in yesterday's the winners. were >> prices were soaring as builders deal with higherns uction costs and the median price of a new home sold in april hit a new record for the month. rates are likely to stay in new low range or even go lower. that could give an unexpected boost to th summer housing market after a pretty mediocre spring. for "nightly business report,"i i'm olick in washington. co durable goods orders fell in april. ing to the commerce department, orders for goods designed to last at least three years fell 2.9% and within the report a closely watched proxy of business investment cooled off and orders for civilian ai

diana olick will be monitoring toll brothers.to you and the things to look out for >> weather has been a challenge for retailers selling anything from swimsuits to garden supplies expect that theme to continue after the bell analysts expecting only a marginal drop in comparable sales for nordstrom but that was the expectation for kohl's too and it was much worse. nordstrom had seen choppy traffic patterns last quarter. investors are going to want to know if any of that cadence has changed too. for urban outfitters the street is looking for comparable sales to fall more than 1% anthropohl jie to be the biggest drag of all of the brands. >> diana, what to expect from toll brothers. >> the street looking for eps at 75 cents a share, decline of 3.8% annually on revenue and we will be watching home prices california a huge market for toll and builders there are seeing flat price annually with declines on the upper end. in fact, 32% of southern california builders dropped prices in april according to a survey by john burns real estate

taylor told diana olick at the capital exchange conference. >> i am bullish because of this and when look at 80 million millennials and i said 40 million of them are getting to household or house ownership over the next 7 to 10 years, i think household growth in that cohort is anticipated to be 3.3 million. when i look at the boomers, about 80 million of them too and household expected to be 10 million over the next eight years. those are huge numbers >> joining us now, someone who knows a thing or two about the housing market hgtv's flip or flop. good to see you again. >> good to see ewe again >> what's it like out there what do you see on the ground the same woman said the end of last year was atrocious. are we seeing a sharp rebound? a gradual one? >> i wouldn't call it a rebound per se but definitely seeing some improvement in the market the interest rates are low right now, lower than they've been in a while and a drop from the future we've been at a very strong market for a long time so we are at the tail end of this thing and dropping interest rates is trying to slow down the

. >> fascinating thank you very much, diana olick.nbc's next capital exchange event discussing global trade in washington on june 11th. you don't want to miss it. >>> from building houses to rebuilding airports, most struggling to handle the growing number of passengers and flights. phil >> reporter: right here in new orleans at the new orleans airport, the new north terminal. this is going to open up later this year and a fair amount of work here and they've got a long ways to go here and one reason this is so important the growth in the number of people flying in and out of new orleans between 2009 and 2017. it jumped by more than 50% the current airport, it's fine it does okay, but they're spending a billion dollars to add this new terminal because of the growth, especially from low-cost carriers like spirit and southwest. the head of the aviation department here in town says this is all about improving airline and passenger efficiency >> as this market continues to grow, we're in a better position to handle the growth in the marke

and despite reports to the contrary, they are in fact buying homes but where might surprise you diana olickington with the details. diana? >> reporter: high home prices with strong demand have today's youngest home buyers moving to smaller cities and that could mean a boom for local economies and home values in those markets. a new study ranked top markets based on both high share of current young residents and millennials moving in and drum roll, the lead, madison, wisconsin. ranked among the top according to the national association of realtors 75% of recent transplants to madison have been millennials and mostly stayed in the area. tech is moving in and young home buyers like garek are following. >> one of the principle industries is technology i work at a tech company on the square and it's really cool being able to be involved in the tech sector while still kind of living here in the heartland of wisconsin. >> other new metros that might surprise you oklahoma city, grand rapids, omaha, durham, north carolina, el paso and salt lake city in the majority of the top ten markets, the unempl

diana olick joins us from washington with this story diana?'s all the things that will go into this renovation from tile to countertops, light togz laminates, all the fancy finishes actually 450 of them are on the list that just went from 10% tariffs to 25% tariffs >> it's probably a 7%, 8% increase, net increase to the consumer i'd love to eat that and not just pass it along but at this point i don't have a way to engineer around that, to use different products that aren't affected >> builders like case were already struggling with a labor shortage and that is also getting worse. nearly three out of four remodelers this year reported higher prices for customers due to higher costs for labor. according to a new survey from the national association of home builders and all these higher costs are causing people to rethink their remodeling projects. in fact, case said they saw last year a reduction in the size of a lot of their jobs as their customers start to reconsider their budgets. back to you guys >> thank you very much for that. next thursd

diana olick is looking at real estate stocks. hi, di. >> reporter: yes, reaps the sector and overtook best year-to-date sector up of a low interest rate play up over 17% year-to-date last week, rose 9% when trade talks broke down with china and a safe haven relative to the market the fundamentals of reit is pretty strong. $15.9 billion in the first quarter of this year and occupancies are at 93.8%, just off the record high of 94.1% in the third quarter of last year top reit performers, single family rental reits, home, industrial and office. >> great stuff thanks >>> teper may turn his fund into a family office. leslie picker with that. >> david tepper with his hedge fund about converting to a family office, according to a source with knowledge of the matter timeline with converting into a family office not yet been established. said, in other words, it could be imminent or it could be years from now we weren't able to determine the exact reason for the move. have converted to family offices in recent years, lamenting the difficu

diana olick as the details >> president trump just spoke to an audience of realtors here mostly a rallyd the need to reform the mortgage market, specifically getting freddie mac and fannie mae getting out of conservatorship. the lead treasury adviser on that craig phillips resigned on monday mark calabria will be speaking with a mortgage bankers conference i'll be there with more details his own plans to recapitalize the mortgage giants, potentially make them public companies again. we also get a read on sales of both new and existing homes for april as well as toll brothers earnings back to you guys >> diana, thank you. meghan, your thoughts on housing and the data we could get next week >> housing has definitely picked up this year and we've been happy to see that. of course it's very tied to the drop in interest rates, the drop in mortgage rates. what's interesting to us is mortgage rates are pretty much right around where they were when the fed started their tightening cycle we've done a round trip now. that's a good thing for those areas of the economy like autos, like housing that

get into the stories driving the market kayla tausche with the latest china trade developments diana olick with the new software housing data. leslie picker outside facebook's shareholder meeting this afternoon and deirdre bosa with three things to watch from uber's first quarterly report as a public company kayla'sar let's start with you on trade >> the trade war between the u.s. and china is set to heat up the trump administration is planning to censure china on relthz freedom and human rights in a hawkish speech in the works from vice president mike pence the speech will be after next week's 30th anniversary of the tiananmen square massacre a white house official confirms. and it comes as china weighs cutting off critical minerals from the u.s. manufacturers. as a chinese diplomat accuses the u.s. of naked economic terrorism. and as rhetoric ratchets up in state media and of course those tariffs from china set to increase on saturday wilf >> kayla, thank you very much for that let's get to diana olick with the latest housing data. diana. >> reporter: wilf, pending home sales. this is a

record disruption and that has some looking at how to fortify their homes against the next storm diana olickibilities and the costs in the latest in her series "on the rising risks to real estate from increasingly extreme weather." >> reporter: hurricane michael was breathtaking but this one image had homeowners and builders alike in awe. one home left relatively unscathed on florida's mexico beach. >> total devastation for miles in every direction >> reporter: russell king built this thouse two years ago not just with hurricane winds in mind but every aspect of the design sits 12 feet above the ground and anchored 28 feet into the ground >> i felt like a better chance of surviving the storm. >> reporter: 12 months later, it is not enough. >> the storms are, in my opinion, from what i've seen, getting stronger >> reporter: he learned from michael and his upgrading his home yet again. >> all this cross bracing is new. it wasn't there. that happened last month all these light fixtures here, they're all going away every one of them. we're making this to put in something else, probably pavers. w

let's get to diana olick diana?ril down 1.5% month to month and down 2% year over year that's a miss. the street was looking for a slight gain for the month. that is the 16th straight month of annual losses for pending homes. these are a measure of signed contracts in april so closings in may and june, most recent indicator of what buyers are doing and importantly, mortgage rates were actually pretty low in april when they were out shopping around. 4.3% mortgage rates today fell to the lowest level since january of 2018 the problem, though, is still high prices and low supply on the low end of the market. prices are beginning to shrink those gains. but there is a double-edged sword there, because while buyers are helped with affordability, some are a little concerned they might be catching a falling knife, that in some large overheated markets, prices may actually go negative over the next year or so. so, again, a miss on pending home sales, down 1.5% for the month. back to you guys >> diana, thank you. >>> stocks o

now, for some real granular exposure on this number, diana olick will dig down for us what do you seey what we expected we expected a drop in home sales in april this is when people are out shopping, this number represents signed contracts, not closings, and in april we did see mortgage rates basically come up a little bit from those lows in march and so you had people out shopping, more flat line during march pretty much. i'm looking at the median sale price, though, $342,200. that's significantly higher than a year ago, $314,400 builders said they're trying to lower prices, but we're not seeing it. they continue to complain about the high cost for land, labor, materials, now tariffs being factored into those as well. not lowering the price any toll brothers did report yet -- a couple of days ago that they were seeing good sales for the last quarter, but their guidance going forward was not so great so on the very high end, you aren't seeing as many sales as we are seeing on the middle to low end. builders should be lowering prices if we're going to see any movement i'm looking at th

home builders also closely watching trade developments diana olick is at a home builder conference inana point, california with those details. zieba. >> reporter: the focus of this entire conference is how to build more affordable housing and chinese tariffs just fly in the face of that remember, home building is not a high margin business so they really have to pass on all increases in their costs on to the home buyers i just spoke to the ceo of clayton homes which is a berkshire hathaway company he saidthe initial chinese tariffs already cost him 2% more for the products he needs. he expects that to increase in the next round of tariffs. they were already hit by canadian lumber tariffs last year which increased costs and they have much higher costs for labor right now. so it becomes a lot more difficult to build that entry-level affordable home when they have higher costs for land, labor, and now materials back to you guys >> diana, thank you very much for that sarat, there's clearly the impact of tariffs on manufacturing here and that's pushing up costs what about the companies lik

zillow diana olick has the numbers. >> zillow group reported a smaller loss than expected, outperformingme flipping business. overall eps for q1 came in at a loss of 33 cents a share on revenue of 454 million that's versus expectations of a loss of 35 cents a share on revenue of 433 million q1 revenue up 51% annually and again, primarily driven by the zillow home offers program where buys and sell homes. that's big gains zillow bought 898 homes in q1, up 80% sequentially, and sold 414, up 200% over q4 it also announced tips expanding that program to six new markets, bringing them to a total of 20 planned by q1 of next year its mortgage program also drove gains. now, this is the first quarter with co-founder rich barton at the helm as ceo. raskopf stepped down last year barton said we delivered strong first quarter results that met or exceeded our expectations in all segments zillow offers incredible consumer demand and rapid growth versus -- gives us confidence that we're in the early stages of something important, he said. shares up over 15% in later trading. back to you guys >> all rig

we're all over the major market impact of this tariff battle diana olick taking a look at how tariffseighing on housing. julia boorstin diving into the sell-off's impact on media names. and we're look at the toll it's taken on technology, a big one diana, let's start with you. >> the home builder stocks definitely took a hit today but not nearly as bad as the broader markets. if you take a look at some of the top ones like lennar, they were down barely less than 1%, which is relative outperformance compared to the rest of the market and there are a couple of reasons for that number one, the materials affected by the tariffs are not the biggest costs for the home builders they're needing lumber and cement lumber prices significantly down compared to a year and a half ago when we saw canadian lumber tariffs go into effect and prices spike and then they calm back another reason, mortgage rates take a look at the average on the 30-year fixed down sharply from last november when it spiked over 5% it's pretty much sitting around the 4.2 level, not expected to go much higher and all the unce