diana olick is here with what other companies could benefit. good morning, diana. >> reporter: good morning, dom the obvious winners in the climate space are solar and wind and electric vehicles. many others are benefitting. something as mundane as hvac systems. air conditioning and heating johnson controls and carrier and honeywell. tax credit to homeowners benefits those makers of heat pumps. agriculture is a carbon offender it benefits from $20 billion in aeg subsidies. they capture through the tax credit a major name in the space is green plains it makes ethanol, but shifted to focus on cleaner technologies for agriculture and potentially cleaner fuel >> clean fuel production tax credit that we'rie talking abou could change the industry from the farm through what we do and revalue the asset base overall to do so many more things that others can't do in refining assets >> reporter: in addition, venture capital firms like fifth wall which closed a climate fund for real estate could see a boost to the start ups that it backs. clean cement and

diana olick looking how communities are looking to get ahead of hurricanes and how they mitigate more extreme damage. >>> rivian with the wrath of customers after apparently pulling the plug on one of the popular models a very busy hour still ahead when "worldwide exchange" returns. what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create wanna help kids get their homework done? well, an internet connection's a good start. but kids also need computers. and sometimes the hardest thing about homework is finding a place to do it. so why not hook community centers up with wifi? for kids like us, and all the amazing things we're gonna learn. through projectup, comcast is committing $1 billion so millions mo

you can see 5.5% demand is at a 22-year low diana olick is here to break down those numbers diana? it's just another data point in this string of them this week that indicates the housing market is in recession and that was the call for the homebuilders on monday mortgage demand last week fell yet again as you said and continues with the 22-year low and the drop in home buyer demand is adding to the refi woes mortgage applications fell 1% for the week and down 18% from a year ago this is the average rate on the 30-year fixed dropped from 5.47 to 5.45 and it's off the recent highs and still up from a year ago when it was up 3%. that in addition to inflation and concerns about the economy are keeping homebuyers on the sidelines and with rates remaining high there are precious few that can benefit from a refi. those applications lost another 5% down 82% from a year ago. rates started this week kind of flat, but they made a pretty sharp move higher this morning and up 14 basis points as bond yields rise across the board ahead of the fed minutes and we know the mortgage rates follow the

joining us now is cnbc's real estate correspondent, diana olick. diana, good morning.se, good morning. it means that it's basically a completely different market than it was just six months ago. and the reason for that is because not only do we have sharply higher home prices, but mortgage rates moved decidedly higher. we're at around 5.5% right now on the 30-year fixed. in june, when those contracts on the july home sales were signed, we went over 6%. and that's why we saw that precipitous drop. but a year ago, we were under 3%. and when you factor that into the high home prices already, it makes it so much harder, especially for first-time buyers to get into this extremely pricey market, jose. >> so, diana, what are we looking forward to? is this the new normal or do you think that it's going to stabilize anytime soon? >> well, that depends entirely on prices. historically, home prices usually lag sales by about six months. and we are starting to see prices soften a bit. i'm not saying they're going down by any stretch. remember, we are up 40% in prices since the sta

our senior climate correspondent diana olick joins us now diana?back to more than a dozen companies we've profiled here so far and the ceo's agreed this money in the form of both direct subsidies and tax breaks to consumers and manufacturers will give small start-ups a big boost and not to mention the venture capital firms that have funded them so far. >> bloc power was our very first clean start. the brooklyn-based company aims to electrify every building in america. donner baird says it lowers the cost to building homeowners, and it creates a new green bank to clean energy projects that wall street can leverage and yes, he said bloc power gets tax breaks. electric hydrogen builds systems to produce green hoydrogen powe and the ceo says it hydrogen power to reward hydrogen producers that can minimize the carbon emissions emic clean tech builds on-site water recycling systems for urban buildings. the ceo says we're thrilled to see $4 bill ondirected to aiding the western states currently grappling with a very difficult drought, a challenge we at ep

diana olick looks at how major companies and local governments are using unique, new weather predictionogy to safeguard their assets in her continuing series on the rising risks of climate change. ♪ ♪ >> when tropical storm ida blew into new jersey a year ago the state was woefully unprepared. after all, it wasn't a hurricane, but deluge was incredible. >> it rained four inches in one hour during hurricane ida and we had a total of six and a half inches of rain in one storm event. the city of hoboken across the river from manhattan is only two square miles and home to 62,000 people it is increasingly home to flooding and it has put in protections. >> it's actually just a big drain? this park sits a a top a massive cistern that can hold 200,000 gallons of water so water can be held and released when necessary, but to optimize the system they need to know what's coming, so just after ida they started working with tomorrow.io, a unique weather technology company that goes well beyond just forecasting when it's going rain >> everything is fully proprietary, we tell organizations, cities, go

diana olick joins me and jeff mills, cio of writtenmar trust, has the trades today. >> diana >> while stock may not have been doing so well, toll was fairing better in earnings than its peers because it's at the luxury price point and buyers weren't as dependent on mortgage rates an the rate moves we've seen that may be about to change because we've seen in the home sales categories at top price tiers are actually falling just as the lower price tiers were. we got new home sales out report this morning showing a steep drop in july especially we'll be looking at toll brothers for their inventory numbers. inventories up near an 11 month supply, four to six month supply is healthy we're looking at prices for toll brothers the high price point, over $800,000 will it fall a little bit? we did see some price movement a little bit, but overall home builders up only 8% year over year in july where prices had been up over 20% in provide months year over year. we're going to be watching cancellation rates on toll brothers because that is the big picture for the builders we've seen cancellation

diana olick.etail we're going to get home depot earnings tomorrow, walmart, target, lowe's, kohl's more than tripling the s&p 500 so far in the month of august. pretty sharp comeback. joining us now is jpmorgan's head of department and specialty soft line retail good title matt boss. which means that you cover all of retail. what do you expect first, matt, from the department stores, especially walmart and target, where expectations have been lowered all year long? target's down 25% this year off a few warnings >> so thanks for having me on, sara look, i think what you're seeing is the consumer picture as a whole i think is stable. you're seeing pockets, though, of cross-currents. so i think the lower income consumer, more so on the discretionary front, that's where you're seeing the primary pressure and that's really what you've had intraquarter with some of the discounters. it's not all the discounters the dollar stores, dollar general, dollar tree have seen much more robust results and that's b

t diana olick on it is cpi inflation. hi, di >> shelter continues to be the big bad wolf in the cpi because it makes up about a third of it and up 5.7% from a year ago. rent is still rising although we are getting some reports that apartment rents are at least starting to stabilize to more historical normal gains. single family rentals up not so much up 14% and that's the latest read from core logic as for the prices of what goes into your home and a mixed bag and major appliances coming up, just under 5% from a year ago and that could be some easing in the supply chain furniture costs are still rising each month and window and floor coverings fell over the month, still 7% year over year as we see home sales drop, there will be less demand for these items and we could see prices ease up even more, tyler >> has there been an effect on mortgage rates from all of this? >> yes, and that happened this morning. you saw the drop in the ten-year yield and the mortgage rates loosely followed that and you saw mortgage rates for the

steve kovach is looking at apple's pullback, diana olick watching the home builders and pippa stevens energy >> apple is taking a leg lower saying the doj could file its ag agent trust lawsuit by the end of the year. this covers the same issues regulators have been hitting them with focusing on the market power with its app store the investigation is focusing on whether or not apple stifles competition by taking fees from developers selling on the app store and requiring customers to use apple's payment system apple has argued these fees support the app store and without it a lot of these companies wouldn't make money at all. it also lowered fees for most developers amid all the scrutiny the european union passing the digital markets act expected to go into effect next year to require apple to allow alternative payment methods hurting the app store and the all-important services segment, mike. >> just so i'm clear on that, steve, in terms of how this doj report fits into what apple has been contending with already, is it just another investigation of the same set of issues or is it so

the home builders ceo according to diana olick said we're in a housing recession.t is not feeling a soft landing, that part of the economy. >> home depot would say at this moment, you're capitalizing if you're buying -- not expands, but the value of your home has not gone down, it's a quandary how to value home depot. walmart is, you know, bang, bang we miss, we miss, they do a number, okay, now we finally beat the number. i don't know food is very interesting. >> it was up in the inflation report. >> pennsylvania senate race on food >> i heard dr. oz is shopping for crew da ta. >> that's what they like in philly. >> $20 fetterman, his opponent, suggested it's not interesting you know what store dr. oz was doing that >> no. >> weg man's. >> even i knew that. >> dr. oz, who knows, i just bring it up he was talking about the high price of food and blamed it on biden >> year over year -- >> we're going to hear deere on friday deere will tell you supply chain. there is supply chain problems throughout the system. but i think that when you look at ukraine they are expor

diana olick looking at one company trying to build a better model for that as part of her continuingrt-ups. hi, di >> we don't often think about fast furniture because people hold onto it younger than clothing, but younger generations are more mobile and more conscious of environmental waste and more are demanding new options. enter the los angeles-based start-up named furnish spelled like the plant >> after walking buy many, many, i would say nuclear bombs worth of furniture on the streets in urban metros where other employees live we came with the idea of reuse, refurnish and recycle. they can rent to own while rental furniture is nothing new, it's often used by consumers who can't afford to buy. fernish targets a different demographic. wealthy, environmentally conscious consumers who choose not to buy >> 90% of our customers had not even heard of furniture rental as an option before finding us we are able to say now, hey, if you've rented this product this is how much in terms of pounds saved from landfill you are contributing the furniture is higher quality than typical rental co

higher across the board today despite a huge drop in pending home sales compared with last year diana olicks us now to make sense of this latest round of data hi, di >> hey, ty there was a lot of data and i'll start with the pending home sales which were signed contracts on existing homes. they fell in june and are down 19% year over year and that's slightly better than the street expected and this is the straight monthly decline and the eighth in the last nine months the realtor's chief economist said the smaller decline in july reflects a brief retreat and rates have since popped higher again and we saw that reflected in the weak mortgage demand and applications were down 19% year after year they were already at at 5.4 today. we got exclusive numbers from black knight showing a sizeable crack in the prices. they dropped 0.77% that doesn't sound like a lot and it is the single largest drop if prices, during the great recession seeing a larger single-month drop in prices. prices almost always rise from june to july because the market is seasonal and families buy during spring and summer so

the nbc real estate correspondent, diana olick now, with the newest snapshot on the housing market. >> reporter: from home building to home sales to mortgage lending, all of those numbers are dropping, leading the chief economists from both the home builders and the realtors, to call a housing recession. single-family home construction was nearly 19% lower in july, compared with the year before. and building permits, which are an indicator of future construction, fell 12%. this, as builder sentiment went solidly negative. >> the builders are done, building single-family homes for a while now. their job is to make sure they can sell that last eight months of supply that are either under construction or not started yet. >> the sticker shock of much higher mortgage rates along with inflation, have buyers stepping back quickly. home demand for mortgages is sitting at a 22-year low. and bidding wars are dropping fast. but prices are not. they're still up almost 11% from a year ago. >> list prices are getting cut. but in part, because i think there is still a lot of demand still for housing

we just heard from diana olick who just used the housing is in resessions >> the fed acknowledged thatuite a bit, the fed being in recession. the fed did not say that, sorry. the fed talked about the housing slo slowdown, and they brought up this idea because of the fed's communications which is quite extensive that the market, the economy is responding more rapidly to these rate increases than it has in the past. i'll take a step back. next week we'll be in jacksonville and talking to fed officials. i realize in reading these minutes i have my work cut out for me there are differences of opinion that maybe i wasn't aware of until i read these notes there was a hawkish wing and a dovish wing that may have emerged and that may have come out of the 75 basis point hike and there's a more intense debate on the federal reserve about where they go from here and there's a concern about tightening too much and some are at this maintain, reach a higher level and stay there for a while. there are some differences out there and we have to do some more reporting on this and we'll get a big chunk o

furniture as part of our continuing series on clean start-ups, our senior climate correspondent diana olick spoke with the ceo at one company trying to build a better model. >> we don't often think about fast furniture because people usually hold on to it longer than clothing, but younger generations are now more mobile, more conscious of environmental waste, and more are demanding new options. enter this los angeles based start-up, furnish, spelled like the plant. >> after walking by, many, many, i would say nuclear bombs worth of furniture on a side of the streets in urban metros where i lived or some of our other employee lived, we came up with the idea of reuse, refurbing, and recycle. >> in other words, rent. furnish is a furniture rental company that allows consumers to either return the furniture when they're finished or rent to own. while rental furniture is nothing new, it's often used by consumers who can't afford to buy. they target a different demographic. wealthy environmentally conscious consumers who choose not to buy >> 90% of our customers have not even heard of furniture r

our diana olick. so does this data mean the stock market's rebound is running out of steam big debate over that morgan stanley saying the sharp rally since june is just a pause in the bear market predicting share prices will slide the second half jpmorgan says the rally could run through the end of the year. who's right? let's ask my next guest, the ceo of zoe financial and it's great to see you both. how are you feeling about the market these days? >> if you look at two different perspectives you might get different answers. is the recent rally justified? i think the answer is yes. we had better economic data when it comes to inflation and jobs which is what market has cared about especially on the inflation front. on the earnings front if you look at this past earnings season on average stocks that under performed their earnings expectations did not fall. that is the first time in over five years that happened which tells you the market expected a dire scenario it did not get. looking forward i thin

. >> so we've talked a lot with our diana olick about this but the idea that the one big difference this time versus 2007 might be that prices don't collapse and i wonder if we can get any kind of more insight on that because it is probably the biggest factor for current homeowners for people trying to figure out whether to wait to buy. is there going to be the shoe to drop or not? >> yeah. i think that is a really challenging question to answer in today's market. there are a lot of reasons to expect that prices will maintain at the end of the cycle unlike they did at the end of the previous cycle we don't have the same amount of leverage home owners are sitting on a record level of equity today so that is a very different -- we don't have a lot of underwriting problems we had in the last housing cycle also we have record low vacancy rates. if you look at the number of homes that are vacant and available, it is at a record low for home owners and also very close to a long term low in the rental side of the market. so housing supply is tight really no matter how you look at it. >> it is g

for that, we head east to diana olick. diana?ng home sales in july fell 5.9% to an adjusted rate of 4.81 million units that's along expectations with a slight downward revision, the sixth straight month of declines and the slowest sales pace of november 2015, with the exception of the very big plunge at the start of the pandemic these are based on closings, so contracts signed in june briefly crossed over 6%. on inventory there were 1.31 million homes for sale at the end of july, unchanged year over year that represents a 3.3-monday supply, still tight. that continues to keep pressure on prices. the median was $403,000, an increase of 10.8%. price gains, however, are shrinking. one more note on price tiers we had been seeing -- where there was more supply, but sales are -- sales were also weakest in the west, of course, where home prices are the highest. david? >> diana, thank you. good thursday morning to everybody. i'm here with sara eisen, we are life from post 9 at the new york stock exchange, carl and morgan have the morning

and to go into those, let's head east towards diana olick. >> this is a huge miss, but i'm not goingexpected, especially with the sentiment down into the negative territory for the first time in several years, also housing starts dropped dramatically. we know what the builders are thinking prices are only up 8% year over year in july that's compared to seeing 20% price jumps just a few months ago. also the supply for new homes sales soar that is up from a 9.3-month supply supplies should yes, ma'amly be four to six months that's considered a balanced mark the builders clearly have way to which on their hands we also saw cancellation rates starting to jump since may. they have literally doubled, according to john burns real estate consulting. you see the builders are in a pinch, seeing demand drop dramatically it's -- we had been seeing those growing, because there was simply more supply there it dropped dramatically in june, came back a little bit in june, but still lower compared to the previous months. that doesn't bode well for toll brothers they, of course, a higher-end builders,

. >>> a new note from goldman sachs said the housing market could get even worse diana olick has moreeady seeing new prices weak un up just 3% in q4 versus q3 still, that puts prices at the end of the year up 14% year over year, but next year it will stall entirely large declines seem unlikely we got the case-shiller report, showing home prices in june were 18% higher year over year. that's down from the 19.9% gain they saw in may. another home prices dropped from june to july, the first monthly fall in nearly three years, the single largest single-month decline, and this has caused a lot of ammists to call a housic recession. it includes not only big names, but also remodelers like home depot and lowe's back to you. >> pretty interesting housing data in the past couple weeks. after the break we'll talk best buy. but first, shares of first solar saying it will spend to expand manufacturing in the u.s the stock is up almost 80% in three nt 'rba itwo.hs this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points

speech this hour impacting interest rates, but what might that mean for the housing sector our diana olickhas a look at that for us. >> hi, mike. the housing market is all about interest rates right now while powell didn't say anything about housing specifically, he did talk about maintaining restrictive policies for some time that means higher rates. mortgage rates don't follow the fed exactly, but they are influenced by fed policy they for mortgage bond yields, which follow the yield, and now it's up again, so we're in a bit of a fluid situation take a look, though, we saw rates pull back in july and the first part of august, but began climbing sharply again last week, in anticipation of this speech, the fear that powell would still be aggressive. obviously rates will be taking demand for the builders, but we did hear the ceo of toll brothers say they saw a pop in demand in august likely due to the rate pullback. affordability improved a bit in july, but 6% seems to be the pain level we've seen home prices react with not only the first monthly decline in three years, but the largest mont

rising mortgage rates and when they jumped even higher this week, builders pulled back even more diana a olick is with us i guess builders are over supplied. >> reporter: yeah, shep, that's right. they're over supplied by a lot there was a big red flag in that sales report builders are sitting on a nearly 11-month supply of unsold homes. a healthy market between buyer and seller is considered a 4 to 6 month supply not only are builders seeing demand drop, they're seeing cancellations soar toll brothers just reported a jump in cancellations from 3% to 13% in last quarter as new contracts dropped 60%. all of this largely due to rising mortgage rates. shep >> on those rates, they inched down a little bit at the beginning of the month but now it looks like they're back up, right? >> reporter: yeah. that drop was really short lived. rates have shot back up just as of last friday we see weakness in the stock market and renewed concession. it had dropped back to the low 5% range and now it's up to 6% for context, it was 3% a year ago. potential buyers who see their monthly payment go up by even a lit

i always defer housing questions to diana olick there's a way you look at the arbitrage of prices.f the mortgage rate goes up do, the prices come down i was a real estate reporter in my earlier days, and i did report through two housing crashes. really interesting, andrew, when i look from the macro point of view the inflation story of housing. it's really a supply question. we've had ten years of underbuilding in housing in this country, so i don't see a whole lot of serious relief coming from the housing market. you may have some decline over time, but not a big decline. >> okay. steve liesman, thank you sir teaching an econ and housing class, right. >>> coming up, when we return, coinbase down sharply. this after the exchange posted more than abillion dollar quarterly loss we'll talk about all of it >>> plus, as we head to the base, check out this morning's premarket winners and losers stay tuned we're you're watching "squawk box" on cnbc this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like h

problems i call diana olick every week and say when do i get better housing data she says, steve, prices lag sales. six months down the road >>> coming up, a big week for retail data and earnings we get you ready for events that could move the markets >>> and dr. scott gottlieb will join us on the new cdc covid guidelines and what it means for return to fiofces. you are watching "squawk box" on cnbc >> announcer: this cnbc program is sponsored by truist wealth. so you can focus on what matters most the thing that's different about a vrbo vacation home. you always have the whole place to yourself. just you and your people. ♪ ♪ your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire >>> welcome back time for the squawk planner. tomorrow, july housing starts. on wednesday, july retail sales and minutes from the recent fed meeting from a few weeks ago on thursday, jobless claims and existing home sales. we will hear from home