dr horton reported better than expected profits, thanks to higher home prices but say rising mortgage rates are increased cancellations and a drop off traffic in june. how the stock did today, dr horton off by 8%. >>> builders like pulte say buyers demand greater energy efficiency but the same worry about the price of those invasions. once more, in valuing a home they don't give due credit for going green. that may change in congress. diana olick has the story. >> reporter: solar panel, tankless hot water heaters and extra insulation can save homeowners hundreds of dollars a month there is a bill to have lenders factor the savings in when figuring a mortgage. >> it's about energy efficiency, savings, i think it's a win, win proposition for the industry. >> reporter: the bipartisan save act does two things, requires lenders to factor energy savings into how much a borrower can afford into the mortgage payment and subjecting the savings in the energy bill from the monthly expenses and tells lenders to add the value of expected energy savings to the value of the home in the appraisal. si

dr horton the best performing stock this week. ers were supposed to be doomed by higher mortgage rates. >> that's what you thought. dr. j. has done a great job with these. these stocks are hot. they're the $100 casino table. there's a better way to play it i think. look at lumber liquidators, the symbol is ll. the valuation is ridiculous. this stock pulled back off its all time high. you can see it rally in earnings next week. >> materials getting a boost today as well. if you listen to our own doctor you could have cashed in on the move. here's what he said. >> i've been buying gold. i said at the ent of the quarter you're going to get a washout. you saw it break through 1200. i sold puts on the minors on the agq. >> as my co-host might say, do you still like the minor? >> i love them. in particular, the gld, it bottomed out at 114.68 or thereabout. that was a gift from all the folks that didn't have the stomach to hold that particular etf or gold physical or the security tiesed version of it. now it's ten points higher. you take

the big winner, dr horton up 7.5%. while shares of toll brothers and kb homes rose more than 6%. >>> we'll look whether rising mortgage rates are turning buyers into renters. >>> the labor department says the miss of hiring by u.s. company was higher in may. report also showed that advertised job openings in may increased by a fraction from a month before. >>> but a small business owner's group sees things a little differently. the national federation of independent business reports that a measure of optimism by small business owners declined in june, following two straight months of gains. more owners reported raising prices and some plan to take on new hires, but many owners say demand for the products and services is still weak nncht market focus tonight, fedex takes off. shares jumped on reports that william yacktman is conten plating a buy. there was no comment from fedex or yacktman. they traded at eight times the normal volume before closing at $103.18, that's up more than 4 1/3%. >>> pressure on ib m's growth m

dr horton ceo talked about higher interest rates causing cancellations.ake a look at what the analyst said about the selloff. she said it represents a revaluation of the group to reflect more normal growth. our question tonight is will sales data and fed talks next week take out the housing stocks once again? how do you play this pullback? >> i didn't think you don't play this pullback. they're extremely volatile. and frankly, they've already gotten killed. i don't see anything in any of the reports we've heard so far that tells me that this is a hiccup. i think that what this really is is everyone's going to take their expectations down a bit and truthfully, we don't really get stellar numbers for july, for august for quite some time. this housing thing could turn into a work situation than what's currently expected. we just don't know, it's too early. >> very, very pretty. >> crazy. >> when we're talking about the housing market, i think you have to talk about the overall market. i agree with josh. i don't think you play based upon what's going on, or y

so while it's definitely true, as you point out, that dr horton, lennar, toll brothers, pulty, these are not all the same company, in general, this rising tide that has lifted all boats and i would expect all of them to fall as well. included in the hxb are a lot of the suppliers to the home builders, names like masco, for example, and some of the others that actually sell the materials for home building to the home builders. and of course, some parts that you might actually think of as home improvement, like lowe's and home depot, whether they will be affect as as much seems mess likely. their valuations aren't quite as stretched and they aren't as tied to it. but in general, this is an entire sector that has really benefited from the low rate environment. the valuations reflect that and if rates continue to rise, it's going to pressure all of them. >> so obviously, tonight, mike is bearish on the housing sector. let's crack open the playbook and see how it works. a bearish trade where you buy one put and sell a lower strike put. how do you make money? you want the stock to fall to

houlton and dr horton add hard ti time. >> that's a big shop. >> i don't think long-term it will matter matter. >> it is entirely possible this could happen. i think it is because over the nextier or two, we don't get the lax one. we have a lost decade, as you report everyday, of people who report all these bad things happen. recession, dot com bomom, housig bubble. it is just a little bit of less negative. >> do you go with those growth oriented cyclic els? do you go with the defensive plpl plays? >> what we are talking about, bill, and it is -- the defensive stuff is very pricey relative to the ones you just talked about. j.p. morgan, intel, lock at their veilation versus the rest of lifetime valuation, and their current returns, current yields, they are crazy cheap. >> what about the rest of the world though? we are seeing merging markets. now there are signs europe is stabilizing. is there any possibility that small caps are historic highs here. >> by low, sell high. don't forget that. >> seriously though. is it maybe time to go in a little bit more into europe and emerging markets?

dr horton, home builders as group remember dropped some 17% between late may and early july.ve since rebounded about 8%. the miners also working in today's trade. reacting to bernanke. you saw the dollar drop. check out miners, gold fields and wr yamana gold. strategic hotels and resorts, uht and dlr. we end on the banks. we get earnings reports from j.p. morgjp morg morgan and wells fargo. >> downgrading wells fargo, will bank earnings put a damper on this rally? >> scott is with us as well as anton shutz. what's behind the downgrade of wells fargo? >> we entered the year recommending about half of the names within the list. so within the second quarter the expectations for the year got a lot more uneven. you had kind of a slow down globally. much more uneven recovery and the big news is shooting up of the long deal. that reintroduced this uncertainty. but in the context of that, banks have hit record highs. we just thought it was -- >> too expensive? >> i wouldn't say far too expensive but approaching fair value. higher rates, good for investment banks. >> this is a very sp

you had dr horton which is not up there. down 81%. let's not leave out the ten year bonds.e day is still facebook. right now, facebook is up seven dollars. again, you do not see this very often. i have never seen such an adverse negative response. fox news reporter is with us. the president makes his big highly touted speech yesterday. the reaction this morning, pretty critical. what are you doing about inequality? aren't you concerned that the president simply cannot address what is wrong with this economy and simply blames his opponent? >> i am concerned that the president cannot get anything done. he kind of goes and hibernate after a while. there are concerns that the republicans are living election to election. i am concerned that the minute this election was over, the entire class decided to talk about hillary clinton. you are right. there are real issues out there. people are suffering. stuart: just not there with ideas. 9.5 million people have dropped out of the workforce. in that time frame, the president on his watch, 7 million jobs are being created. 7 million jo

dr horton ceo talked about higher interest rates causing cancellations. said about the selloff. she said it represents a revaluation of the group to reflect more normal growth. our question tonight is will sales data

winners are in the housing sector following bernanke's comments on keeping interest rates low and dr hortonr the week. intuitive down on disappointing earnings due to sluggish demand for its products. and boeing shares falling after news of a 8 7 87 fire. it's one of the worst performing stocks not just for today, but for the week. back to you. >> all right. thank you very much, seema. the dow and s&p 500 trying to close at a new high for the second straight day. the dow down about 19 points but it has everything to do with boeing. is it time to start thinking about readjusting your retirement portfolio and exposing yourself to more stocks? bob pisani with us. >> reporter: i want to give people simple principals. keep calm. have a plan. don't time it on fed rumors. the plan should be to figure out how you want to divide up your retirement dollars. here might be a typical allocation for a 50-year-old cup, mix of foreign stocks, bonds, yield, and you think it should be 10% instead of 25%, fine. don't next month say oh, my heavens, the fed's talking, it should be 5%, and next month, oh, my hea

the homebuilders -- lennar, dr horton, pulte, all in the red today. of course, higher rate, steeper yield curve, better economic data with the jobs report. good news for the financials, but particularly the regional, zion, regions financial, all working today. and, finally, a stronger dollar. you saw the pop in the dxy, and gold takes a hit. you check out the miner, au, abx, all down hard in today's session. back to you. >> josh, thank you very much. >>> joining us to break down the volatility we saw in the markets today, jordan waxman from hightower, stephanie ling from the street, ron detrick from schafers investment research, and our own rick santelli. ladies, first. steph, what did you think of today's trading? so good news was good news after all, i guess, huh? >> yeah, i'm of the belief that good news is good news. clearly, this week, we had a lot of positive economic data in the u.s. also in europe and in japan. and so, just going back to the u.s., it was ism and commercial construction, factory orders, auto sale, the list goes on and on. i tho

dr horton, lennar, pulte posted nice gains on friday but heading lower in today's trade.been under pressure on concerns about rising interest rates. among the blue chips, boeing leading the charge. fell nearly 5% on friday after reports of that 787 fire in london. today, though, it's your top performer in the dow. up today, up some 40% so far this year. maria, back to you. >> all right, josh, thank you so much. >>> we want to get the latest on boeing's dreamliner fire in london. phil has the story. >> reporter: maria, we're probably still a couple of days before the u.k. investigators pinpoint a cause for the fire that happened on friday. but we do know today from talking with a number of sources that increasingly investigators are focused on the role of the plane's emergency locator transmitter. that's one of a number of components located near the rear of the airplane. now, in the 787, the elt is manufactured by honeywell. we should stress here they're not saying the elt is the cause of the fire. they are simply looking into what role the fire -- or the elt had with the

dr. pepper. we've been around wendy's-tim horton's. they always stock about the big block of synergies. you know what good managements do, they eliminate the dissynergies, 100%. but our numbers don't eliminate the disinner i goes. our numbers are $144 a share by just separating the beverage business and the snack business, says there's $400 million of this dissynergies that remain. it doesn't go to zero. and you still get $144 a stock, andrew. and if left to their own devices, the way the company is structured today, pepsi by 2015 will probably be $105 stock. >> you alluded to pepsi and indra as being good managers. how do you drudge irene rosenfeld at mondelez, given the poor margins perhaps at the bottom of her peer set? >> okay. i'll tell you, there are -- there are managers who are very good strategically, there are managers that are very good operationally. irene gets very high marks for strategy. she did what a lot of companies wouldn't do. she ran a dow company, a dow 30 stock. she bought cadbury. and she split the company into its natural fault line. created great value. the kra