we heard this several months ago when this started with regards to homebuilders. of people are waiting for the market to right side. the idea some shortages are due to covid and are transitory issues. after all, there is no shortage of trees. it is a matter of cutting them down and getting them to the mills. do you anticipate a rightsizing of the market soon? stinson: there are a few things. in the weeds in lumber, you have to focus on the canadian forests. there is not an abundance of trees they are the government is willing to cut. most of the land is owned by the government, and they reduce the allowable cut, because they saw the pace was not sustainable for the health of the forest. homes from phoenix to charlotte are built with canadian lumber behind the drywall, so it is a structural problem with a shortage of trees or logs. this is like covid fast tracked a lot of trends in our economy. one trend was reduced basket in canada. the mills had a tough year in 2019. if you look at lumber prices, they were depressed, so low prices, a mediocre housing market, and

what is the general sentiment from the homebuilders and other folks?there a sense they can wait for this to happen or they have to suck up the costs? >> there is a lot of pain on the end user side. a lot of housing is done on contracts that are done months ahead. they need to deliver the housing projects they have promised. if they have not stocked up on inventory until now, they don't have a choice but to buy the lumber at the prices they can get it. that is why you are seeing builders have been asking for congressional legislation to step in and see if there is any relief that can be brought into the market. there is a lot of pain. it will probably continue for a while. caroline: really great insight. our agricultural editor. thank you very much. lumber back where it is hot. joe: i got my second shot today. i'm not going to be looking at anything tonight. romaine: is this the way you are telling us you're not going to be here tomorrow? joe: exactly right. caroline: stay well. that does it for what'd you miss? ♪ so you're a small business, or a big on

so if you feel like these homebuilders are a little bit expensive, think about the housing proximatecks, for instance that we have, home depot even building roads down in texas. there's a lot of ways to play the real estate boom and you don't have to do it necessarily in homebuilders if you feel there might be a better entry opportunity. >> we will take a quick break and come back. weildohaviusual actity wl tt next the pursuit is on. the pursuit of outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management business of prudential. we may be in a touchless world, but we can still touch people's lives... by staying in touch... and showing you care... because now, each time you order online or tap in-store with your mastercard at restaurants and grocery stores, mastercard will

i like that story quite a bit. >> jon, what about the homebuilder? the homebuilder etf was one of those at new highs yesterday a lot of the stocks in it like le lennar which you have calls in and lowe's which is a new all-time high as well, what are you doing with those now >> holding them, scott in particular i love that the interest rates have come back rather than running away to the upside so that's been good for both of those companies in particular. you know, i just keep waiting for the moment when i have to pull the trigger on home depot because it has been a sideways mover, scott if i saw some big institutional volume in there, i would love to get back into that name. but, like you say, lowe's, i'm willing to stick with that if we start to see some other homebuilders catching bids on the institutional side, i would be happy to chase into those, too, because rates are not running away from us and that's a good thing for both the homebuilders and for the people that supply the stuff like lowe's and home depot. >> masko, honeywell, sarat, you ow

it is not about the homebuilders. >> why isn't it? >> it is really about what you think is going to happen with growth it is really going to be about what you think happens to inflation, and does that start to keep higher, and if interest rates continue to go higher. i think that they will because of all of the stimulus we've talked about endlessly for the last several quarters. >> forgive me for interrupting hold your thought. >> cyclicals actually outperformed. >> hold your thought i need to go to meg tirrell with news from the cdc. meg. >> scott, some news from the cdc on guidance for wearing masks out side they now say fully vaccinated people can unmask for certain activities including walking, running or hiking or biking outdoors alone or with members of your household, a tending a small outdoor gathering with fully vaccinated family and friends or outdoor gathering with a mixture of vaccinated and non-vaccinated family and friends. they're still saying for people fully vaccinated, you should wear a mask particularly in public pl

in this bill we will have money that homebuilders can use and these cities can use the money, the homebuilders can't get direct grants from the government, it has to go through the cities, to do rehab and in some cases build new housing. it is a crisis that we can fix if we -- if our ambition is large enough and wide enough. and so i'm excited that the president had me there. i also tried to push -- i'll do this quickly -- the new definition of infrastructure. at first we were calling this an infrastructure bill. it's now a jobs bill. when we talk about infrastructure, it's not just curbs, sidewalks, and bridges. look, i lived outside of the county where the last caller was calling from, a place called waxahachie. i didn't live in a place with running water until i moved into public housing. >> we have a picture of what you were just referencing, where you grew up, to show to viewers so they can have this image as you talk through this. >> that house is still standing. people in waxahachie wan drive by and see it today on kaufman street. i lived in that house for seven years. my dad worked thr

we did see in the new numbers that we had the highest homebuilding in 14 years. that means we made a lot more -- we need a lot more in the next three years to get up to the pace we have been missing for more than a decade now. host: let's talk to donna, who is calling from salem, massachusetts. donna, good morning. guest: -- caller: hi, jessica. hello? guest: hi. caller: i just wanted to, because it is my lived experience, the greatest redistribution of wealth being that property is the greatest asset of people is happening through the family court. you don't know what you don't know, until you know what, until you live it. my people were honest, hard-working. they were blessed to have a -- to have acquired property. today, because of 18 years of negation, you know, it played out just how they wanted it to play out. my elderly mother, she ended up a very wealthy woman. she owned two properties, had money in the bank. it was like oh, we can't allow that. so little by slow my family -- a decent family -- lost so much that i'm never going to recover from it. it is h

batting is getting passed onto the consumer. >> according to the national association of homebuildersd $24,000 to the price of the average new house. lumber prices are expected to stay elevated for months to come. ♪ david: masks off, taxes up, and the fed stays put. this is bloomberg's "wall street week." i'm david westin. this week's special contributor larry summers of harvard on the fed playing chicken. >> i think it is an economy on fire. david: daniel on the shortage of restaurant workers. and on the president's tax plan. >> the greatest science experiment conducted in the history of economic policy. david: katie koch of goldman. be sure prasada of cornell on the covid catastrophe in

i texted with the ceo of one of the biggest homebuilders yesterday and i said what is the workaround?said there is no workaround, we are just going to try to be a bit more efficient. some builders are trying to warehouse lumber. in a lot of cases, builders are just raising prices and consumers are saying all right. joe: we have heard at least anecdotally some concerns about cost of things like insulation and flooring that go into the final part of a home here. how are builders addressing this? ali: another great question. 98% of builders raise prices month over month. when you look at the numbers, 50% raise prices $10 or more. i have heard of home prices going up 250,000 dollars in six weeks. it really depends on the market, it is crazy. to answer your question is lumber is going up, insulation is going up. concrete is going up. one thing i want to know is right before i got on the call with you guys, they say that they held off raising prices because they knew that builders were just getting pummeled left, right and center. he said he finally had to go back to builders and say i am s

let's go to jerry howard, national association of homebuilders ceo. jerry was very early on this possibility that some of the costs associated with buying a home, you know, especially new homes, like lumber and a lot of stuff goes in them would be prohibited factor, maybe put a dent in this. jerry you proven very prescient. do you worry about the price side of the equation? that will further future home purchaseses. >> there is absolutely no question, neil. demand is there. one of the reason existing home sales are sliding because those homeowners have nowhere to move up to. don't have anywhere to downsize or get a bigger house. we're having trouble producing houses at any level of the market right now. neil: you know when i look at the homebuilders stocks most of it has been doing pretty well. they're in and out of these 52-week highs. is it that investors don't sense this is a severe problem or are they saying this too shall pass? >> i think that there is still some optimism on the side of investors as there is for all of the us in the industry that

$1 billion a year, so recipients can use the grants for clean energy projects, weatherization, homebuilding electrification, and other related projects. when you talk about climate justice, what does that mean? and is this part of the total package of infrastructure proposals that would be included in the president's plan? guest: we have several bills. another one is green the ports across the country. almost a quarter of americans live within three miles of a port. they are great for the economy. i had the los angeles port in my district that brings a lot of import, export, brings a lot of jobs, but is also a big polluter. climate justice is taking care of frontline communities, communities of color, those on the front lines of being disproportionately impacted by air pollution, emissions, and being next to oil refineries. again, i will keep going back to covid because we've seen them hit hard by covid. you have seen higher deaths. we have to invest in these communities to make sure that they are first in line to get access to funding and dollars to address the disparities that they are fa

thinking about do-it-yourself projects so there's fierce demand and a shortage of new houses, homebuildersyour most at capacity, when you look at profit in stock prices they are exploding right now, timber, and therefore, those are canadian companies but even the americans are getting in on the pacific and that one might have some upside and strap on your toolbelt, it's all about wood. jack: lumber is an interesting investment if the prices plummet you can sit on your tree holdings and they will grow until you can sell more for more not to mention nobody's going to discover a whole new deposit of trees like you might with silver, gold or copper. it is time in barron's tradition to get actual ideas from our panelist i will start with you. >> the stock has been doing nothing for six months just going sideways but now it's breaking out, the company reports april 27 in citigroup think the numbers will be good, it is looking interesting. jack: carlton what is your idea. >> my colleague that it can close out the gap that has with autozone and advance auto parts the most obvious reasons were usin

if you look at bellwether names in plays on used car sales as well as homebuilders, they've done really is auto nation and carmax auto nation really, you know, they're really more emphasizing used versus new cars even though new is higher on revenue, and then we have the homebuilders. here's the thing, homebuilders have kind of flattened out here as yields went up a little bit, and maybe people are wondering about what the cadence buildout is going to be and lumber costs going through the roof the used car story and new car for that matter seems pretty strong by the way, guys, one of the reasons is rental fleets, they were buying a lot less, and they liquidated a lot of their fleets last year. that's usually a source of a lot of used cars for sale. >>> the broader story mike is inflation. especially if you look at used cars every day there's an earnings report whirlpool was the latest, chipotle also out, the other day was p&g and kimberly-clark and smucker. they're all raising prices is it because of one time issues like a spike in raw materials prices for instance or chip shortages, an

look who is here, jerry howard, the national association of homebuilders.s the grin. >> thank you, stuart. so good to be back. our members are seeing traffic at still outstanding levels. like your previous story about retail, the american public is out there wanting to buy. homes are no different than anything else. the traffic is there but as you guys noted earlier, the real issue is supply. i think that if we want to sustain this and keep this going for the long term, we have to build more houses. we've got to be able to count on the availability and reasonable price of building materials. stuart: i want to look at the situation right now. i got these numbers from redfin, the real estate people. it shows that 59% of homes that went on the market were under contract, in other words, sold, basically within two weeks. is that what you are seeing with new homes as well? >> well, we're seeing them come in to start to negotiate the contract. we have to put escalator clauses and all kinds of codicils to the contract to make sure we cover the problems with the su

homebuilding season. finally, crypto. for some commodity people, it is about the power, where machines use a lot of energy. citibank had a great report. the power load has surged about six times, more than argentina. a lot of the mining activity is in china, which is primarily powered by coal. a great pie chart shows you the electricity breakdown consumed by bitcoin, to see if it is dirtier. 54% so far is related to coal. only about 14% to natural gas. when bp announced its energy transition strategy last year, not only did it plan to become a net zero company by 2050, but it promised to help the world get to that zero. the green ambitions may have been counterproductive. rachel adams-heard has the story. it is a great week for reporting. what did you learn? rachel: i learned a lot. i had not looked at a sustainability report that in-depth in my career since we had all these net zero targets. it was really interesting to see the breakdown on the company level, where the greenhouse gas emissions are coming. when we got the

lisa: it has to do not only with homebuilding, which has been going gangbusters. ideas of investing in infrastructure and i have to say that the fascinating story that is surprising after the digital economy was front and center in 2020, now we are talking about the physical world and just how much people are bidding that up, and i wonder how far that will go and what this is pricing in an terms of what plans will get past and how much this will go to fixing roads and bridges. lisa: 40 -- tom: 4200. we were talking about it earlier in the team meeting we had. it goes forever. lisa: it was minutes before the show started. tom: lisa and i were in makeup. jonathon: that is where the team meeting is. do you wear makeup? tom: but, when do we get to 5000 frame -- framing. we are not there yet. but come on? lisa: it is on the fundamentals and that becomes a question when caterpillar shares are up nearly 3%. this makes sense. we did not see the same thing for apple, even those those -- even those though -- even though those earnings b. tom: analyze it. we are up 24%. jona

many old school international industrials hitting new highs as well many of the homebuilders hitting new high as well you have growth moving and value. that's a powerful rally. at the same time, it's a little worrisome in the middle of the day to see oil dlcollapse we were weak at the open one little thing to keep track of in an otherwise very upbeat market back to you. >> thank you very much despite the up tick in new covid cases across the country, wall street and main street are both off to the races today genuinely strong economic data from the march jobs report on friday and this morning's ism and pmi numbers are powering the market higher today. look at that the s&p over 4,000 almost 4100. the dow and the s&p record highs. nasdaq back the highest levels since february it's still about 3.5% off its all time high. bryce, welcome good to see you. one of numbers astounding is the average u.s. equity fund went up more than 8% in first quarter and yet more individual investors poured more money, by far, into bond funds which struggled. what are they thinking >> yeah. overall money is

, and homebuilders can get grants from the city, and they can do rehab.me cases, new housing. it is a crisis that we can fix if our ambition is large enough and wide enough. i am excited. i also will do this quickly, the new definition of infrastructure. at first we called it infrastructure building and out is jobs building. it is not just curbs, sidewalks and bridges. it is the whole thing. i did not live in a house of public housing or water -- host: i think we have a picture of where you were referencing where you grew up. i wanted to show that to viewers so you have the image as you talk to this. guest: that will give people an idea. half is still standing. i lived in that house seven years. my family worked two jobs in public housing to send my mother to college, and i played football, so i went to college for free, until i got injured. look, housing, my dad cleaned up his yard at his house he is 97 years old. someone threw a cigarette butt down, and my biggest concern is if my father would get in a fight. and that is what we have got to create, more

it will likely go through the summer peak of homebuilding.amp up fast enough to meet demand. trucking delays and worker shortages in the yards have added to costs. lumber futures are searching to more than 60% of records this year. gas in synchrony financial are parting ways. they could reach an agreement to renew their long-standing -- the clothing retailer has decided to shift its business to barclays beginning in may of 2022. synchrony says gap is one of its five largest partners. that is the business flash. alix: it has been a busy day so far with the johnson & johnson news as well as the cpi increase. here's what i am watching in the next 24 hours. in just about an hour, the white house will hold a press briefing with dr. fauci. definitely tune in for that. no doubt it will be about j&j vaccine, delay, what they're looking for. how soon the vaccine can come back. also tomorrow the bank earnings bonanza. jp morgan, wells fargo, as well as goldman. coinbase trading debut. it is in many different types of businesses. how do you value it whe

cost of building a house has risen by $24,000 in the past several months as the manufacturer, the homebuilderufacturing index has come out. inflation is here, prices are rising, supply is low. there are now more registered real estate agents than there are houses for sale. it is going to continue to be strong. and that is what our underlying dynamics are here. shery: which takes us to the risk question. one was the last time we saw this overheating of the market? and what could be the downside of all of this optimism? al: great question. at some point, there is a downside. we will have to pay for this. this debt fueled, fed fueled boom will come to an end. the cycle will have a counter. at that point, it will be painful. i don't know when that is. it is certainly not right away. but if you just take a look, we have u.s. treasury yields around 166. if you own long treasuries, you are in the negative yield -- negative price point for the new year. if you held u.s. corporate bonds, you have lost money this year. at some point, we have to pay for it. at this point, the market is still set to run.

we did see in the new numbers that we had the highest homebuilding in 14 years.hat means we made a lot more -- we need a lot more in the next three years to get up to the pace we have been missing for more than a decade now. host: let's talk to donna, who is calling from salem, massachusetts. donna, good morning. guest: -- caller: hi, jessica. hello? guest: hi. caller: i just wanted to, because it is my lived experience, the greatest redistribution of wealth being that property is the greatest asset of people is happening through the family court. you don't know what you don't know, until you know what, until you live it. my people were honest, hard-working. they were blessed to have a -- to have acquired property. today, because of 18 years of negation, you know, it played out just how they wanted it to play out. my elderly mother, she ended up a very wealthy woman. she owned two properties, had money in the bank. it was like oh, we can't allow that. so little by slow my family -- a decent family -- lost so much that i'm never going to recover from it. it is hap

the national association of homebuilders says would cost are adding $24,000 to the price of the average new house. >> i think prices will ease a little bit in the summer, the average lumber historically has been between three and $400. right now it is over $1000. i sit in the seven, $800 range by summer. >> reporter: experts believe it will slow down a little in the coming months as americans shift the spending from do-it- yourself to travel and entertainment. >> plenty of empty shipping containers with nothing to and back to china, and so, salt lake city just built a six three apartment complex entirely out of containers. and is already proven to be pretty sturdy. >> we had an earthquake right in the middle of it but we kept working through the earthquake, to the pandemic and it has been an interesting project, to say the least. >> the developers say they are at least containing costs. tenants will pay hundreds of dollars less in rent. >>> you've heard of the beyond burger. now, taco bell is jumping on the plans based bandwagon. the chain is testing a new meat alternative taco ahead of

little bit of a pause in the reopening stocks, so they take some momentum out of the xhb names, the homebuilderthey take some momentum out of the airlines and cruise names. that's fine. these stocks are up huge then over in tech land, they're hitting the twitters, the snaps. that doesn't matter. these are medium-sized companies. they don't really matter i think if you are going to have a correction and you are going to have it focused in the most overvalued, overheated areas like ipos, like mid cap tech, no problem. bring it on. i hope they take it even further. >> okay. but, tiffany, the real question becomes whether the correction josh is talking about rolling in some areas like ipos and spacs and some other areas of the mash market as well, if it broadens out, right you already have something like 90% of stocks above their 50-day moving average people saying, oh, the market is so over bought is there the risk that the pull back that josh is noticing in other parts of the market becomes more widespread? >>. >> yes, so i think overall, scott, i'm really bullish on the outlook so i understand w

$1 billion a year, so recipients can use the grants for clean energy projects, weatherization, homebuildingctrification, and other related projects. when you talk about climate justice, what does that mean? and is this part of the total package of infrastructure proposals that would be included in the president's plan? guest: we have several bills. another one is green the ports across the country. almost a quarter of americans live within three miles of a port. they are great for the economy. i had the los angeles port in my district that brings a lot of import, export, brings a lot of jobs, but is also a big polluter. climate justice is taking care of frontline communities, communities of color, those on the front lines of being disproportionately impacted by air pollution, emissions, and being next to oil refineries. again, i will keep going back to covid because we've seen them hit hard by covid. you have seen higher deaths. we have to invest in these communities to make sure that they are first in line to get access to funding and dollars to address the disparities that they are facing

homebuilding doing enbetter. beazer homes is up 40% year-to-date.tes, putting a lot of easy money in peoples pockets. as gerri said, the move towards work from home, a large percentage of companies will not bring their employees back anytime soon. the days of mass empty desks, at that will last somewhat longer. people need the room. that is why they're paying up. neil: that is a pretty high-taxed area, that something about the demand of this real estate boom. thank you, my friend. grady trimble looking at another phenomenon. forget about homes. how about used cars? they're in a boom of their own. what is going on here, grady? reporter: neil, the pandemic drove car sales up because people are not taking public transit as much. then you have the chip shortage which is hugely affecting the auto industry. they're not producing as many new cars so people are turning to new cars. somebody who knows that well, is our friend woody woodring in naperville, illinois. what do you see, prices are going up, people look to buy anything, either new or used, right?

we also have a problem with homebuilders getting a, d and c lending, acquisition, development, construction come in to help create a secondary market for that kind of lending because banks are averse of taking that level of risk. brian: david, we have to leave it there i'm sorry. we're out of time. thank you very much. appreciate it. >> thank you. brian: president biden gets ready to roll out his latest spending plan. why some say the president's plans could lead to a bigger exodus from blue states. the second hour of "cavuto: coast to coast" begins after this. ♪ [announcer] durán catches leonard with a big left. ♪♪ you can spend your life in boxing or any other business, but one day, you're gonna take a hit you didn't see coming. ... what matters is you're down. and there's nothing down there with you but the choice that will define you. do you stay down? or. do you find, somewhere deep inside of you, the resilience to get up. ♪♪ [announcer] and this fight is a long way from over, leonard is coming back. ♪♪ ♪♪ ♪♪ walter, did you know geico could save you hundreds on car insurance and a who

the national association of homebuilders says wood costs are adding $24,000 to the price of a new homerb a 70%, 60%, 70% increase in its demand without having supply issues. >> reporter: steve sala is president of lumber buying cooperative lbm advantage. he believes it will slow down in the coming months, and americans will shift spending from home improvements to travel and entertainment as infections drop. >> i think prices will ease a little bit in the summer. the average lumber historically has been between $300 and $400 per 1,000 board feet. now it's over $1,000. i see it in the $700 to $800 range by summer. >> reporter: he doesn't think lumber costs will return to normal levels until the middle of next year. cbs news, new york. >>> welcome to "cbs this morning saturday." i'm jeff glor with michelle miller and dana jacobson. coming up this hour, wild caught has been a desired attribute at the fish counter. but that may be changing. we'll hear from experts on why fish farming may be repairing a bad reputation to become a key player in the world's food supply. >>> then, it was all i

i will put real estate developer stocks, homebuilder stocks.pensive to live in a city that dc planners, to make it more affordable, and other places are converted into apartments. this is a coast guard warehouse or was and offices, the coast guard moved out long ago, helping the developer to make it an apartment. >> the downtown in many major cities in the us, mid twentieth century has been a single use district predominately 9-to-5, eight two six area. washington dc worked to make it more of a 12 to 18 hour district, you need people waking up early in the morning and staying out or being entertained at night. >> this is expensive because the developer had this built into in e shape out of a square, moved out of that because they had to get light into the different apartment areas and they are finding people, kids have moved away looking for places near where the washington nationals play. that is what they are finding. >> seems like a good idea to me. parents call it zoom in a room. kids are back in school, teachers are working from home. in c

is that why you like dr horton, the homebuilders. >> if you look at the supply of existing homes, it now so demand for housing isn't going away, they are buying houses sight unseen above asking price which is crazy. when you are stuffing your home for a year or your parents basement, they start to bail you the quality of that roof over your head so we need to build more homes, more affordable homes and dr horton had to beat the race quarter in that sweet spot at the entry level and the move up, where the shortage is and the demand is. stuart: another check of the market still going up very nicely, susan is watching a dow stock known as intel. >> delay for green you see as you mentioned, not there for inter-blooge and and and hiked from its previous guidance, this is the first report card, that was interesting. you pointed this out earlier, wolf research initiated as outperforming a price target so they can make $35 or so and looking at a recovery and business spending, alphabet reporting tuesday, same day as your beloved microsoft that meantime we have alphabet's drone delivery unit