usually a lot more foreign buyers the market flipped to more domestic. >> interesting diana olick, thank you very much drew the lucky straw and got to go to florida. >>> coming up, three big scks to making bigger headlines. disney's proxy fight, american's sky-high profits and nike just doing it this year "three stock lunch" is next. hey, that's what u.s. bank is for. anything else? how about a loan for a bigger car? our family is growing. awe. yeah, my brother's moving in with his five dogs. oh... heyo! and we're expecting. ahh! (dog sound) expecting what? help for today, planning for tomorrow. u.s. bank. we'll get there together. osisko development is a premier gold mining company with a goal of achieving mid-tier gold producer status with the company's advanced-stage projects located in north america, headlined by the cariboo gold project in bc and the tintic project in utah. osisko development ♪♪ i don't accept this. i can't do this anymore. impossible odds, save the world. i'm done. what do you have for me? a new way to transform our agency. strategy to execution. oh, looks my laces

eastern time coming up, would-be home buyers and will the severals come down in price diana olick upull happening in the housing market right now stick around as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to 60% a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. just look around. this digital age we're living in, it's pretty unbelievable. problem is, not everyone's fully living in it. nobody should have to take a class or fill out a medical form on public wifi with a screen the size of your hand. home internet shouldn't be a luxury. everyone should have it and now a lot more people can. so let's go. the digital age is waiting. >>> welcome back we don't need to tell you this, but we're going t

lights out for real estate or could the housing market get a little boost from buyers overseas diana olickk, take a look at the dow heat map with chevron, verizon, and merck, a few of the bright spots, walgreens is the biggest laggard. more on their rngs aereainft the break. "the exchange" is back after this more you. so thank you. we hope you like your work. (♪ ♪) >>> welcome back to "the exchange." after the comments from the fed's james bullard, we are off the low. the dow is down 277 right now, but less than 1% declines. microsoft is actually the worst megacap name today it's on pace for its third straight day of losses and worst week since september this after d.a. davidson initiated the stock with a buy, saying it's well positioned for a downturn, has significant upside thanks to its investment in artificial intelligence the analyst behind that call will be on next hour to make its case msft down 2.6% lamb weston hitting an all-time high they're up 10% quite familiar with them in our household. beat and raise story for both of these companies. the other two staples, not so much walgr

i don't know if it will happen diana olick, thank you >>> keeping our eyes on washington as congress prepares to return to capitol hill to kickoff the year with fireworks. republicans are taking control of the house and kevin mccarthy is looking for votes to become the next speaker they have the 2024 presidential race set to gain momentum. for more on d.c.'s year ahead, let's bring in jimmy pethokoukis. he is our cnbc contributor jimmy, happy new year. >> happy new year, frank. >> we laid out a lot of stuff for d.c. and the new youear. what will happen for d.c. and white house and congress >> i think it has to be the debt limit. whether they raise that debt ceiling. it is the perfect mix of factors for that to go wrong we have narrow majority in the senate and house obviously, we have republicans controlling the house. you have, at best, a weak house speaker, who made a lot of concessions to make it easy for rank-and-file to challenge him if they don't like what he wants to do on the debt limit. it is hard to set up a clean debt bill. there is this. republicans made a huge point that

diana olick. >>> still ahead, fin tech, financials and evs we're trading sophie, goldman and lucid. look at sofi up 17%. melissa lee is live in miami beach with a preview wow. >> lots of fun maybe too much sun we've got a big show coming to you for the iconnections global conference headliner, jim chanos his takes on the prospect of a conflict with china in 2025 and we will f. you tonight here 5:00 p.m onast money. much more "power lunch" coming much more "power lunch" coming up your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. at stores everywhere without a prescription. so cozy. how many rooms are in there? should we go check it out? yeah. we get to stay here all weekend! when you stay at a vrbo... i call doing the door code! ...the host doesn't stay with you. it looks exactly like the picture. because without privacy in your vacation home... it's a full log cabin guys. ...it isn't really a vacation... we can snuggle up by the fire. ...is it

diana olick breaking down the mortgage numbers diana, what do the numbers say >> well, it's not a great look to start the year. mortgage rates ended last year on a high note and mortgage demand ended on a low note that's because the 30-year fixed is starting the year around 6.5% it started last year just under 3.5% so big surprise that refinancing is just plunging those applications at the end of the year were down 87% year-over-year and mortgage demand from home buyers was also down 43% year-over-year so it seem that is the mortgage market and the home buying market is apparently frozen despite as we know, the unseasonably high temperatures at the start of this year right around here, tyler >> thank you, diana. stick around for just a moment >> manhattan real estate sales seeing their biggest drop since the pandemic and one of the biggest on record, robert frank. what's going on with this real estate freeze? >> this is the biggest real estate market in the country a lot of money at stake here sales down 29% in the fourth quarter. that was the biggest drop since the pandemic in 2020 the

diana olick's got story there. >> rates took another big leg lower this morning following that drop in the ten-year yield. the average rate on the 30-year fixed dropped 13 basis points to 6.04%. that according to mortgage news daily. and that's the lowest rate since early september of last year the rate hit a recent high of 7.37% at the end of october, which caused home sales to grind to a halt. to put this in perspective at today's rate, the monthly payment on a $400,000 home with 20% down on the loan is now $283 less than it would have been at the end of october, but still, $315 more than it would have been a year ago when rates were in the 3% range. melissa? >> diana, when you talk to and listen to the conference calls of the various home builders that have reported, have they mentioned this, the comedown in mortgage rates as a tail wind for them >> they've talked about it a little, but more, they're talking about incentives, that they're giving to the home buyers, like buying down the mortgage rate, because it is still higher than a year ago, and also offering them other potential

diana olick. is this good news? >> you can get excited for a couple days.oing lower. home builders are at six-month highs. the chart guys can point to where this was almost to a t there's nothing here that is good for housing, and talk about a consumer i think is going to be under more pressure than they have been, talk building costs, copper prices. i think the costs related to housing will not get better. no, i would not be chasing this news i wouldn't chase lower rates into housing >> i guess the chase, we knew people who locked in 30-year fixed at below 30%, a year and range ago, so the idea we have 7.5% not too long ago, you have that sort of decline in a short period of time and the data we've seen about mortgage application it makes sense here. i just don't think that will be a trend and sooner or later the supply and demand dynamics people were saying was a massive tail wind, i just don't see it here again, i don't think there's anything to chase. ultimately you're going tosee yields come down much lower but much longer from now >> a share at discov

diana olick has the story. i'm looking at the ten-year and saying they must be down. >> i was just going to say, you were talking about the ten-year, mortgage rates are dropping to start the year they loosely follow the yield on the ten-year the average on the 30 hit 6.14% according to "mortgage news daily. that's down 30points from just a week ago the rates dropped sharply on friday after the monthly job report and then mover lower today. the rate last peaked at the end of october 7.3%, so the now of monthly payment now about $260 less than in the fall. that has consumers feeling much better fannie mae's monthly sentiment showed more people are now saying it's a good time to buy, and more are saying they think home prices will fall further. thursday we do get the monthly consumer price indix if it shows inflation cooling against. mortgage rates will fall even further. >> i was speaking to an agency yesterday, who she had she's never had this low of inventory in 40 years. >>> now lawmakers need to agree on a se

kind of impressive, considering the collapse of home sales and falling prices as well we turn to diana olick for the story. >> in this report we have toy laser focused on mortgage rates. in this recent run-up, the peak was at the end of october, when it went over 7%. throughout november and december, that rate came steadily down and sharply down in december. that will be factored into in quarterly report we want to see the commentary on that dr horton is the largest homebuilder in the nation, but they also have the compress homes brand, those an entry-privilege brand. so we want to see if the lower mortgage rate will factor into the new orders, which we expect to be down, but how far down we did see sentiment improve in january because of the lower mortgage rates one more thing we have to watch is cancellation rates. they have been sky high for the builders are they starting to come down all factors to watch, kelly. >> boris, you're not ned -- on the october lows that diana was talking about. >> that's the reason why i'm so hesitant i think dr horton is the bellwether in the segment, and act

back to you guys >> diana olick, thank you. >>> we are 30 minutes into the trading session.g alphabet popping after announcing plans to kit cut nearly 6,000 jobs, 6% of its workforce, the largest round of layoffs from the company coming from the ceo. you can see shares are up almost 4%. >>> ppg on pace to break a three-day losing streak, reporting stronger than expected results. even as volumes sale, slowing manufacturing activity they make industrial paints and coatings shares are up 5%. >>> nordstrom, negatively preannouncing for q4 noting a margin hit, working through inventory as consumers spent less freely during the holidays. similar scenario to what we saw from department store rival macy's you can see shares of nordstrom are down 2% right now. >>> let's dive into this morning's biggest mover, and certainly leading the s&p. netflix, exceeding expectations on subscriber numbers. founder reed hastings is stepping down as co-ceo. our next guest is more concerned in the near term with the increased price of password sharing rather than advertising. let's bring in alan gou

diana olick has more hi, diana. >> hi, morgan. that's rights. standing on the last piece of undeveloped land on fisher island just off the coast of miami beach. this island is a 216-acre ultra exclusive community only accessible by ferry or yacht and only accessible to residents, their guests and guests of the small luxury hotel here and if you're a reporter doing a story on the last development, which is from george perez, behind the ten-story, 50-unit project with a price tag of $1.2 billion. units start at $15 million and the project includes a $90 million, 15,000 square foot penthouse and a $55 million ground floor villa with a half acre backyard. it has its own yacht slip and sales started just last month. >> almost 30% of the units are spoken for contracts have gone out for over $300 million, and we haven't really done any marketing. nevertheless, should the market slow down a little bit, we're in a fortunate position >> pending sales of miami condos in the $5 million plus range were down 89% year over year in december, according to jonath

or mars or beyond but with evermore focus on clean fuels, the clean space race is just beginning diana olickn climate startups. >> whether spacex's starship or the sls rocket for the artemis moon program, the rocket business is getting crowded. once seattle area startups is hoping to stand out as the cleaner alternative. stoke space is in a race to produce clean fueled, rapidly reusable rockets that can deliver satellites into earth's orbit while protecting the earth itself its founder and ceo is a veteran of jeff bezos' blue origin program. >> we have to be thinking ahead about how to do that sustainably and scalebly. >> reporter: the stock rocket uses sustainable fuels including liquid hydrogen. it's designed to go up and return to earth with both the booster or upper or second stage fully and immediately reusable. >> you think about jumping on an airplane you can pretty much go anywhere you want to go at any time for relatively low cost. that's what we want to get to for space launch having a reasonable second stage allows you to do that. >> reporter: using unique heat shields, the stoke

diana olick is here with more and the latest what's happening and how >> well, kelly, the united nations announcing the ozone layer will be healed in 43 years thanks to the montreal protocol in 1987 when literally every nation in the world agreed to stop producing what they called color row fluorocarbons, chlorine and pro mean used in aerosols but that does nothing for global warming and fight for it it sets a precedence okay, if we have this regulation and agreement, we can actually fight something and heal likts the ozone layer. we need to do more when it comes to global warming. we are nowhere close when it comes to global warming. in fact, world resources institute just put out a study saying that of all the sectors we talk about, they are so far away when it comes to power, buildings, industry, transport, forest and land and food and agriculture, they are not acting nearly fast enough to get us to that 1.5 degrees celsius of global warming that is the goal of the paris agreement kelly? >> i guess the positive thing here is the proof, i suppose if you can call it that, that enlighten

. >>> tons of housing headlines lately diana olick has the latest read on buyers with the mortgage appstaking a big step back. and also outlook on the builders diana, kick it off >> mortgage rates dropped sharply last week and that drove refinance demand but did little to excite potential home buyers. average rate on 30 year fixed dropped last week to $6 6.42% f loans with 20% down. the drop in rate sparkeda 5% weekly applications, but volume still 86% lower than the same week a year ago. even with rates lower than over 7% last fall, at the current rate just 270,000 borrowers could actually benefit from a refinance. a year ago with the rate half of what it is now, roughly 7 million borrowers could have now, mortgage applications to buy a home fell 1% for the week and were 44% lower than the same week one year ago. it was the lowest reading since 2014 buyers are not only contending with higher interest rates but falling supply they may be waiting to see just how low they go. >> thank you, and the market's so bad that wells fargo is getting out of it entirely is that how we should read th

diana olick, the data wasn't all doom and good. >> no.as the street was expecting. they dropped 1.5% month to month but they were down 34% year-over-year rounding out 2022, saw 18% fewer sales than red-hot 2021. higher mortgage rates and tight supply are plaguing the market with inventory at the end of december down about 13% from november here's the bright spot, actually up just over 10% from a year ago. at the current sales pace, that's still just a 2.9 month supply and four to six month sup ply supply is a balanced market. prices are easing. the median price of an existing home build in december was $366,900, up 2.3% year-over-year we're off the huge annual gains they were seeing as recently as last summer. it is the smallest price gain since may of 2020. homes are staying on the market longer on average, 26 days. that's up from 19 days the year before just 14 days last july all cash sales, though, are rising 28% in december up from 23% the year before. that's likely due to higher mortgage rates and a return of investors to the market

die diana olick has the story. >> and mortgage rates on a high note, average rate on a 30 year fixednce june, but still higher than they were a year ago so today's mortgage rate translates to about $2100 without taxes and issuers which is a 63% than a year ago and they predict it will head over 7% again this year and end the year at 7.5% and on the bright side, there is much more supply 47% more than a year ago but still slightly below historical average, but it is translating into a slower less competitive market homes are taking an average of 56 days to sell. and the home builders have been pulling back and you see the home building etf is down about 26% year over year but off the much sharper lows from last june when rates first went over 7% and the most recent sales report we got on new contract signings showed a surprising bump up. so maybe that is the good news for the new year happy new year >> exactly when does the spring selling season really start to set in. i mean, when does all of wha you are describing translate into a make or break year for the housing market >> the uno

. >> diana, thanks for now, diana olick. >>> still ahead, shares of lvmh posting a gain of nearly 1% just over the past month, boosted in part by china's reopening. we'll dig into the other luxury names seeing big moves next. but investors may want to remember steven roche's warning about the recovery right here on "the exchange" yesterday take a listen. >> the current leadership under xi jinping has moved the needle on reforms with impacts on productivity that i think are very, very worrisome and a deepening chinese conflict, which i've just written a new book about, is causing further problems for china on the technology front that are likely to be long lasting lily! welcome to our third bark-ery. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is

retail sales and industrial production, getting fresh data a comb moments ago for that we'll turn diana olick straight monthly decline, sentiment rose four points to 35 anything under 50 is still considered negative, but the street was looking for another drop builders point directly to the recent drop in mortgage rates off the highs we saw last fall, the 30-year fixed a full percentage point lower to the lower 6% range of the builder indexes, current sales rose to 40, sales expectations increased two points to 37 and buyer traffic rose three points to 23. regionally on a three-month moving average confidence was still lower across the nation, lowest in the west and highest in the south in the report nihb chairman jerry con jers said the rise in builder sentiment means cycle lows for permits and starts are likely near and a rebound for home building could be on the way later in 2023. we get december reads tomorrow morning at 8:30. let's head over to steve liesman for business inventories >> thanks, diana up 0.4%, with don't know how much of that build is wanted or how much is unwanted with co

diana olick joins us now with more >> hey, joe.et two weeks for the price of one this week as the mortgage bankers association was closed last week i'm going to give the totals for the two weeks. first off, rates at the end of 2022, the average rate on the 30-year fixed jumped to 6.58%. just for context, it was 3.33 at the end of 2021. as a result, total mortgage application volume plummeted 13.2% over the two weeks and that is seasonally adjusted. applications to refinance a home loan dropped just over 16% and were 87% lower than the same period the year before applications for a mortgage to buy a home dropped just over 12% from two weeks before and were 42 weeks lower than the same period a year ago. the end of the year is the slowest period for the housing and mortgage markets, but these year over year comparisons show just how hard consumers are taking rates but economic uncertainty. mortgage rates started a tiny bit lower. really, all eyes are on the all-important jobs report friday which will move rates more significantly. we