. >>> the nation's largest home builder dr horton exceeded expectations in the fourth quarter. new orders and closings all saw solid gains from a year ago and this sent the shares 8% higher. this home builder is tapping into the market that few others are. as diana olick explains it's paying off. >> they're turning a quick profit for dr horton which swung to the quarterly gain of 64 cents a share for the fourth quarter, an entry level no frills product launched in 2014 expressed growing in units, cot accounting for 2 the % of the company's sales. >> we love targeting the first time home buyer. and they did a phenomenal job of capturing the return of the first time home buyer. they have a terrific geographic footprint in california, texas, florida, arizona, nevada but especially in the core texas market that's a lot of concern about the impact of lower oil prices on demand. >> other builders like competitive pulte homes are going after first time home buyers, but not necessarily low priced entry level buyers. >> a lot of the investment has gone into the move up category. in fact

chicago fed president charles evans speaking this afternoon and we got tencent in china and dr horton coming out with numbers as well and when it comes to big interviews, a first on cnbc interview, mary jo white, interview taking place at 9:10:00 a.m. eastern on squawk on the street. >> that's it for today's show. thank you for joining us. it's been a pleasure having you with us as always. i'm wilfred frost. >> i'm susan li. u.s. squawk box is coming your way next. [announcer] if the most challenging part of your day is the staying awake part... ( gunshot ) sleep train has your ticket to a better night's sleep. because when brands compete, you save during mattress price wars. and through veteran's day weekend, save up to $400 on beautyrest and posturepedic. get interest-free financing until 2019 on tempur-pedic. plus, helpful advice from the sleep experts. but mattress price wars and this special financing offer - ends sunday. - ♪ sleep train ♪ your ticket to a better night's sleep ♪ >> we're not likely to get back to $80 barrel until 2020. an apple a day, tim cook barn storming europ

dr. radley horton is an expert on these super storms. he's a climate scientist at columbia university. welcome. >> thank you. it's good to be here. what's the definition of a hurricane? a hurricane is a storm with very strong winds. it's a storm that forms over the warm waters of the tropical oceans, and as soon as that storm's winds get up to about 35 miles an hour, we call it a tropical storm. and if if its winds get up to 75 miles an hour, it's a hurricane. >> how are hurricanes classified? >> hurricanes are classified by how strong their winds are. a category 1 hurricane, which is the weakest, has winds just above 75 miles an hour. category 5, which is the strongest, is winds at around 150 miles an hour. >> so, what causes these hurricanes? >> hurricanes are caused by a combination of factors. several things have to come together for you to get a hurricane. one of the most important things is a warm ocean. waters of the tropics. with the warm sun beating down, when temperatures get to be about 80 degrees fahrenheit, conditions are right for a lot of evaporation, which provides a lo

dr horton just reported a big rise in quarterly profit. should you be buying these stocks now? be right back. . >>> shares of d.r. horton surging after the company beat estimates, reporting a 44% jump in profit because of rising home orders? joining us now is bob wettenhal from rbc capital markets. welcome to the program. >> good morning. >> this is the biggest of the home builders, arguably the one that's most exposed to first time buyers. actually a stock that's done quite well. what is the recommendation on what you've seen today? >> this is just another example of the whole team at d.r. horton delivers consistently excellent high level of execution. we love the beat. we love the strategy of targeting the first time home buyer. management has done a phenomenal job of capturing the first-time home buyer and they have a terrific geographic footprint in california, texas, arizona, nevada. there's been a lot of concern about the impact of lower oil prices on demand. i'm in houston today, we don't see it. >> they are close to your $32 price target. >> yeah. and this is the kind of

dr. horton, but it's d.r. horton, soaring on the earnings. the bullish sign. the results are signalling about a key part of the american housing department. we'll talk about. that speaking of, which the numbers out on the most expensive housing market. yes, san francisco is on the list. but you won't believe which other cities are, too. bob dylan. to improve my language skills, i've read all of your lyrics. you've read all of my lyrics? i can read 800 million pages per second. that's fast. my analysis shows your major themes are that time passes. and love fades. that sounds about right. i have never known love. maybe we should write a song together. i can sing. you can sing? do be bop. be bop do. do be do be do. do do do be do. >>> hi, everybody. here is your cnbc news update for this hour. president obama asking the supreme court to save his plan to keep illegal immigrants from deportation. republicans consider criticized the plan as illegal exclusive overreach. democratic presidential hopeful bernie sanders rallying on capitol hill with fast food workers fig

some of the big public builders like dr horton are building lower priced entry level homes but othersonard and pulte are skewing more expensive. supply is what we need. back to you guys. >> thank you very much. take a look at interstate 80 in northern california. this morning digging out from the snow and freezing rain from a big winter storm. it is now making its way across the united states. they need that snow and snow pack up in the mountains there in california and the mountain west. so what to expect and what it means for your thanksgiving travel. we'll give it to you straight ahead on "power lunch." so what's your news? i got a job! i'll be programming at ge. oh i got a job too, at zazzies. (friends gasp) the app where you put fruit hats on animals? i love that! guys, i'll be writing code that helps machines communicate. (interrupting) i just zazzied you. (phone vibrates) look at it! (friends giggle) i can do dogs, hamsters, guinea pigs... you name it. i'm going to transform the way the world works. (proudly) i programmed that hat. and i can do casaba melons. i'll be helping tu

dr horton results beating the street on a 19% jump in new orders.gher. >> there's a new side thing. >> that's neat. >> also the market has been tough on the beazer of late. orders were relatively flat. you can see the stock is down on the news today on its earnings report. lions gate shares dropping after the movie studio posted an unexpected quarterly loss. trading now down about 7.25%. rackspace topping estimates and offering an upbeat estimate. the stock is trading higher this morning. yet, by 7%. mylan says it is confident of a successful completion of its tender offer for perrigo, even as that company is calling to reject such offers. gap shares, an earnings warning. gap right now is trading down, about 7%. i got through all of those. >> well done. >> i still have time. >> and rackspace, if you want to know what that is about, join us. >> join us tomorrow. "squawk on the street" is next. ♪ >>> good tuesday morning. welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. premarket is w