. >> this is a great time to work at lennar.olid from financial to strategy and technology is what keeps us most vibrant. people looking to work here in this company are part of the future we are building the home building processes that are going to take us forward and a lot of people want to be part of it our investments in a number of technology companies have paved the way forward for our company overall and you're going to continue to see lennar investing in technology moving forward let me give a quick shoutout to open door. that was an early technology investment of ours that will lead the way to become the first of our company investments that goes public. >> all right indeed talked about it on "squawk box. i want to thank stewart miller great to see you, sir. >> nice to see you, jim. thank you. >>> they rally and then they dip on the earnings. that's what is going on in this business now since the bottom and i think it will continue "mad money" is back after the break. we got no free pass. everything we have, we've earn

lennar had a crushing response to numbers yesterday but this morning analysts got behind it and it came roaring back today taking the whole cohort with it. just like what we heard from fedex about the goods' economy over taking services, it is catching analysts by surprise. we have high single digit unemployment co-existing with incredible home building numbers and great demand now, that is not supposed to happen even as this is an unprecedented situation. so the rally gets delayed until the selling side can explain to the buying side what is going on and internal research people have realized the pandemic has changed everything in this country. if you can work home from, you're not waiting for a vaccine. you're buying a new home with more space further away from your job because who cares about where it is when you don't have commute. the homes are homes/offices. look at air on chairs i told you to buy last friday they can convert any bedroom into an office houses are being reoutfitted for the covid economy causing sales to sore and anything involving furniture at home, way fair, willi

. >> it's a tweet beat for miami-based lennar earnings up 33% annually q3 revenue came in at $5.9 billion versus estimates of $5.8 billion but changed year over year new order -- up 16% year over year. lennar says they're accelerating their housing starts interesting, revenue from financial services business came in huge at $135 million up 80% from year ago. that's the strong mortgage business clearly benefiting from rock bottom mortgage rates and refi boom. guidances $100 million to $105 million and robust market conditions and miller expects home sales to stay strong for the foreseeable future and president said home prices remain flat but struggling with limited availability and materials in certain markets q4 guidance came in reported an all-time q3 low in sgna and so lennar have really cutting cost and benefiting on demand remember heavy in the florida and texas markets, very hot. a great beat but notten the irely unexpected not entirely unexpected. >> the stock not reacting positively again another situation with home depots and lowe's couple weeks ago where the numbers are tremendo

you want to buy in breakout but it's struggling at $41 i think the way to play it is with lennar andnue to show outperformance >> i'd love to know how guy would customize his house, what he would do. >> an arts and crafts room, i'm sure, things like that. >> yep >> do you have a comment on the stock? >> oh me >> yeah, you >> okay. sorry. ultimately it's hard to tell with the mannerisms on the show here i didn't know if you were talking to me. bottom line, the housing trade continues. we're in a housing bubble. but i think the home builders have some ways to go i would not be playing it through the home builders, though i would be playing it through component parts, things like hvac or appliances or materials. wea we've really just begun. with rates at these levels, these trades are going higher. >> guy, you have your hand raised. >> i'd like to respond to tim in terms of how i would customize my house i would install both a pool and a pond and the pond would be excellent for tim. >> thank you. >> is that a quote from a movie? >> it is, actually. >> i'll take your word for it. >>> up

shortly quickly, home depot, lowe's, sherwin-williams, these are really, lennar homes are related to that, this new normal of do it yourself and homeownership. charles: right. i agree 1000%. in fact those are the two strongest groups on friday. they look great again today. you like one much these spacs, one has pricing power, people should look at it. >> it has been a hot market for blank checks. one of the best ones that i think is going to happen in 2020, when lca, will turn into golden nugget online gaming. they focus on the i-gaming aspect, table games, slots. tillman fertida's company spun out, online form. important to note they're profitable unlike draftkings which had a similar situation where it went via ipo a spac. now trading up 400% or what have you. charles: phenomenal. >> this is the way to go. it will happen in the next couple weeks, to have that catalyst. charles: if they can follow draftkings which broke out last week, up again huge today, or penn gaming forget about it. people will make a ton of money. shah, you talked about overall these investors coming back into

, we had stewart miller on early this week, when lennar reported, numbers were spectacular but the stock got dinged and first, before roaring the next day after analysts raised estimates, i bet the same thing with d.r. horton you're going to see the same pattern with k.b. homes. this is a household name, the defensive stocks are tough to own because investors have no interest in them when the industrial part of the economy is coming up campbells, great situation but people aren't interested you can do worse than buying campbells or general mills 3.4% yield especially since it's got faster growth than most consumer package good plays love the blue buffalo pet food marley loves it. i don't care for it. friday is big. don't try to put in acn because it spell checks to can needless fact. j bill, car max and darden i like all four. it helps big companies dig tiit and makes divisions for all sorts of electronic companies including apple. car max sells used cars. finally, there is darden, the parent of olive garden upgrade after upgrade. mom and pop competitors keep dropping like flies. darden

although it has underperformed versus lennar but i do like the macro, the space the pullback doesn'to like it before are still in place. they got a little ahead of themselves for me, i would probably be in one of the others. >> interesting about a week and a half or so ago we talked about the three names karen discussed, dhi was north of 70. that happened. we said pulte holmes was bumping against its high and probably time to take profits and the laggert has been toll. so i think you stay with dhi if you are in and looking for a pullback to mid 40s with toll brothers i think you will get it and that's your entry point. >>> an unexpected bright point about cruise lines what it could signal about a broader recovery to come >>> welcome back to our special hour of fast money let's break down this rally. seema? >> the cruise lines which typically lead the market lower as we have seen in 2020. but there was news that carnival is slowly resuming sailing if the ships remain covid free, carnival could gradually bring more ships to europe and eventually the u.s they have gone billions of dolla

apparently due to the console's customizable semiconductor len lennar shares are down 2.5% saying theverage sales price is flat from a year ago and expected to decline. housing is expected to cool off. walmart's new program launches today. walmart plus, their version of amazon prime costs $98 a year. including unlimited free delivery on orders over $35. members can pay with their phone and skip the checkout line at the stores watch out amazon >>> still on deck, has the pandemic and lockdowns got you concerned. pepsi, the drink for inso many knee 5:0s. what they are throwing in the soda, next >> announcer: today's big number, $800,000 that's how much tiktok's parent company spent on lobbying in the first half of 2020 as government officials considered banning the app over national security concerns almosthr tee times the lobbying spend for all of 2019. yup! and that's faster? faster, yea! but is it reliable? ah huh and secure! you should consider making a big deal about it! bigger? i said bigger! oh, big-bigger deal bigger than what i'm doing? it's not complicated. a 5g network needs a

the bayview neighborhood association has -- their negotiations with lennar and five point have led to cleaner air and reduced traffic congestion in the neighborhood. and joining us today is their board of directors. all right. fantastic. i wanted to ask you just one question. what is the biggest positive change you have seen in the bayview hill-candlestick point neighborhood that you've seen in the last year? what is the biggest positive thing that has happened for you this year. >> we can breathe the air a lot better. [applause] >> we can take deep breaths now because we do have the pollution that we used to have, we don't have the congestion from all the cars from candlestick park, and we definitely are trying to make sure that we don't breathe anything else nasty that's coming from the shipyards. [applause] >> yes, please, a round of applause. [applause] >> now, the community challenge grant has been supporting many community design and implemented projects in san francisco for years, and they played a vital role in hoping build more liveable, more sustainable, and more vibrant nei

this is an image from the frank lennar collection. a photograph from buffalo bill's wild west show. i have done a lot of research on william f cody and buffalo bill's wild west. my dissertation was on art and advertising and buffalo bill's wild west. my interest in this area started from one collection at the american history museum which is a portrait collection of sioux indian performers from the wild west. they photographed those images that i started out with the american in images represented in the collection happy so -- behind the scene photos which i like to see. what were the performers doing when they were not in the arena? a different element of what was happening. instead of the performers in the arena reenacting things like, you know, the battle of little bighorn or horse races and other types of program acts that would happen during a visit to the wild west, here is cody sitting with a couple of the performers that i am thinking it is possibly chief iron tail at cody's left to performed for more than 20 years on the show circuit with cody traveling nationally and inter

data releases including retail sales and housing starts and the earnings continue to trickle in with lennar, fedex and adobe as well. asia is coming off a mostly higher session the action getting started in europe as well and karen is standing by in london with the news karen. good morning despite the reversal that we saw in the u.s. tech stocks. european markets were still bouncing and that market was a stand out one in europe. we are seeing that in recent months and weeks it gained 2.8% ahead of that 2.5% so we clearly out performed but not quite keeping pace with the ftse this is unusual. the u.k. stock market has not been the leading market in europe but last week we saw it climb back above 6,000 points. this morning it's very much on the flat line but it did coincide with news around brexit that perhaps negotiations are not going as well with the european partners ahead of key deadlines that perhaps the agreement could be overridden and that's one of the clear catalysts. >> back to you >> back here on the home front nearly a dozen u.s. states are seeing a new surge in coronavirus cases

. >> perfect or they can all go work for lennar they need a good nail and hammer man.hey failed us it's okay. what else is new >> well, we're going to try to track to what degree they put something together in the last minute, guys. >> all right >> after the break we will talk more about what to expect out of the debate tonight, what's on the line for the market as it pertains to tariffs and tax policy, and we will talk to larry kudlow, director of the national economic council in the next hour. futures in a tight range today don't go away. what do you look for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. mhm, yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. now offering zero commissions on online trades. we charge you less so you have more to invest. ♪

out for the month of july earlier this morning has put a bid to some of these homebuilder stocks l lennar up 2%, kb home, 2.5%. homebuilders still a tailwind for all. let's look at apple. three and a half gains, another record high, $133. right now this company is worth about $2.28 trillion just to put it into perspective, bill, because i know you like this at the pandemic lows, the market value of apple was around 982 billion, with a b, not 2.8 trillion with a t. to put that into further perspective, it's basically added more than an entire alphab alphabet, google's parent company in value just since the lows i'll send things back over to you. >> i forgot to order a nasdaq 11,000 hat, now it's too late. i'll need a 12,000 hat >>> as we enter this new month, there is a new wall of worry awaiting stocks, the uncertainty around the future of enhanced unemployment benefits along with eviction moratoriums across the country ending, and of course, the stalemate regarding that new stimulus package in congress but with new all-time highs as you saw for the s&p and the nasdaq and the nasdaq 100.

when it comes to home builders like lennar, they are going kicking and screaming and same for dardinlast-man standing situation they assume we get the virus under control or it would go away or we get a vaccine much faster than plausible. so they're constantly missing some big wins if the ones that are really just call them the covid beneficiaries. the best example between expectations and reality is costco the big box club reported yesterday and while the numbers were great, the analysts got freaked out. they're worried about a spike in covid spending to $281 million and the need to pay bonuses and customers that will stick with the chain once the pandemic is beaten wake up. unlike the ann lialysts and cha costco is a step before. they were the first store with the no mask, no service policy when other chains were worried about scaring away customers by making them do something inconvenient costco gambled with what most welcome a safer shopping environment and that paid off between keeping stores disease free and the wide aisles that make social distancing easy at costco, they are c

yesterday after the close lennar blew away earnings consensus. how do investors get exposure to these sectors? david, i want to go back to you then, are these areas, materials, industrials, they have been looking really good. is this where investors should broaden out their portfolios? >> i think industrials are probably one of the best places to go, maybe even one of the safest because i don't care whether you're in amazon or walmart you have to manufacture the goods, somebody has to ship the goods and financial company likely has to finance the transaction in the first place. these are the areas of the economy that have to do better if we have a sustainable economy that can move out of the 2021 and beyond. charles: and, courtney, you also like an etf in the industrial space. which one is that? >> exactly. i think choosing individual names it can be difficult to do and a really good way for investors get low-cost, well-diversified funds is vanguard or charges schwab. a lot have these. good example it the van guard industrial index. a good way to

they are not visible we can see lennar's fabulous sales but how do you gauge the stress of the landlord mostly you pick it up from the credit's market. what else? when it looks like we had the virus contained, some of the favorite cloud stocks kept rolling over two classic examples, adobe or do docusign both got pulverized after excellent quarters i invite both companies to come back rather than focus on the stock going down cases are spiking so they are roaring again. i bet they can go back to their old highs. you have a lot more demand for cars they didn't seem to like new cars that's how contactless used car like carvana that sent the stock sky rocketing. so many guys bet against these whatever even the bulls didn't expect to be this good this is the new normal until we get a vaccine. every time we try to reopen, the virus comes right back it's the bars and restaurants, people we know this because countries have gone through the same thing in the u.k., in spain, israel, cases started spiking a few weeks ago. we have 17 states where the numbers are on the rise and getting worse. it is

the proposal would resolve the national security concerns >>> lennar has revenue to beat forecast onrs, backlogs the average sale price was roughly flat from a year ago and expected to actually decline in the fourth quarter >>> and walmart's new membership program officially launches today. benefits include unlimited free deliveries on orders of over $35 and discounts on gas members can pay with their phone and skip the checkout line >>> and the federal reserve is set to kick off a two-day fed meeting, and steve liesman joins us with the latest results of a cnbc fed survey. so that's today. they really sneak up on us, don't they, steve? >> they do every six weeks and then you blink and all of a sudden there's another one. we have some pretty profound results from the survey, joe, about just how long the federal reserve is going to be on hold we all can take a nap for a couple years now i'll show you the results here 92% expect the fed balance sheet to grow. that's the main action expected from the federal reserve it will grow to just about $10 trillion it's now about 7 trillion. add

putting money into work and housing and everything else, i actually had the silly idea of going with lennar and ed lee to china because they wouldn't invest in our city. it actually was a lot of union funds and trust funded that started putting money in the stuff. i was one of the teams that was invited to go, of all places, to main land china to fine some money. but i hope that these comments let you know that i'm honored to be on this commission, and i really want your support to be able to continue to do this work, and more than willing, gang, to take any questions that you might have, so thank you. >> chair ronen: thank you so much. i keep calling you tim. i should be calling you mr. paulson or commissioner paulson, but i've known you so long, it's hard. i just want to thank you for taking on this new role that is hard for you because you're so used to being on the other side of the podium. but i appreciate your willingness to serve in this capacity, and i'm excited that the mayor that's chosen to support you. do you have any questions? do any colleagues have any questions? commission .

lennar, hr, herrmann miller, nike, autonation, autozone all the companies blew it away tlst are pocketsy that are not doing so well i know it. of that's why we need the stimulus that's why i think you get it. but i think there is enough stimulus in the system to have some of the cyclicals do better. this group, industrials, materials, discretionary they have operating leverage >> i'm going to give you the same push back we pick it up on the other side. we have breaking news. meg has the details. >> sara, novavax starting a phase three trial in the uk of the potential covid-19 vaccine it plans to enroll up to 10,000 volunteers ages 18 to 84 in the uk we talked with gregory glenn earlier about enrolling there. here's what he said. >> it looks like the uk is going to have a massive surge in cases. so that's going to be the art is getting enough cases to, you know, to declare success >> and, guys, they are probably a few weeks away from starting the phase three trial in the united states. operation warp speed saying in a briefing yesterday they were expecting to start in a couple weeks in o

aggressive to me but there are a lot of companies, david, if you talk to them, if you talk to horton and lennaralk to costco, if you talk to walmart, david, they say, yeah, that's true >> sales are very strong >> yeah. >> remember david berman a couple weeks ago saying he has never seen anything like it. >> that was a great interview, david. >> here are the opening bells. this morning you can see realtime exchange, we're going to see we could put in what would be the worst september in quite some time. >> but, david, i said that the last ten days of september have historically been bad, it's going to be even worse this year and what this does and this is what's important to people getting very negative, it takes 1999 off the table, david, we never had this in the year leading up to the nasdaq crash. >> right you made that point yesterday, we've never had this significant of a pull back -- >> yeah, i made it yesterday, i think it's a sal yant point, you can make it twice. >> you can make it and i'm sure you will make it many times. >> why would you -- >> i say the same thing over again every sin

good news, homes on fire this is a trend i've been pounding the table on for six months lennar, d.r.ou want look what these things are doing right now. that extends to home depots. want to mention hard to be bearish with ipo, not only seeing record supply on the market but making new highs in pric price. all of these deals you talk about all day every day not swamping demand. monster bounce in semis, nvidia, intel wants to close the gap google is the laggard but the rest all had a nice recovery ups and fedex not giving up any gains. those charts are immaculate. when you've got all of those things looking the way they do, it's hard to have a frown on your face right now. >> right transport, semis, all good, even home builders, leading indicator to the economy. >> that's right. >> fiscal stimulus, some people want it, make people need it start with delivering alpha conference this morning, he gave his take on how the market might react to a democratic sweep on election day listen. >> maybe long-term, two or three years out a democratic sweep would be okay. short-term with changing capi

. >>> looking ahead to next week, on monday we will get results from home builder lennar tuesday is thely results from fedex, which is trading at the highest level in years and adobe wednesday we have the all-important fed decision we're also wondering whether we're going to go into week three of market volatility after what was straight up off the march lows worst week for the s&p since june, for the nasdaq since march. what will you be watching? >> obviously this is a time when you actually watch the behavior of the market itself reacting to itself, meaning that it's really a matter of whether a 10 or 11% decline in the nasdaq, which is what we've seen so far, is enough given how strong the surge was into those august highs, enough to relieve the pressure and bring it back onto a more sustainable trend or not and also how the market absorbs a lot of the macro data coming out next week. you have retail sales coming out, housing numbers you mentioned the fed also, maybe a dozen little ipos. all those things, i think, are in play as we get into next week. >> i was going to point out as w

are rebuilding their homes by the way, stewart miller said the same thing, executive chairman of lennare call is going on right now. when i think about herman miller i'm chig e-commerce up 248%, expansion in margins by 300 basis points get this, 300% increase in purchases in the home. this is what's going on. when you asked me earlier about how much risk there is in the market given the fact that the fed is totally in favor i'm not saying that the market is going to go down huge i just think that you could revisit what happened during labor day the reason why it can't go down huge is stocks like herman miller the office is going home despite what i hear from people who have a vested interest that tell us on air don't worry everybody is coming back, barclays in london just today two people have covid, they are going back home. it's herman miller market. don't panic, recognize that we could do a retest because of the overexuberance of snowflake if we don't get that overexuberance in the next deal we are going to say we're fine one more point david is jammed, but one more point. if we get

>> lennar, reported great numbers but nothing's enough with this crowd and lance fritz, union pacifict a stock, what a group. we got some winners tonight. let's make some money. >> all right, jim, yeah, in the meantime good tuesday morning, everybody. welcome to "squawk on the street." i'm carl quintanilla with david faber. jim is sticking around for part of the hour at least a big hour ahead with an exclusive with speaker pelosi, sta starboard's jeff smith and we will begin with the markets this morning, and for that we'll turn to goldman's chief u.s. equity strategist david kosntin. good to see you. >> good morning, carl, nice to see you. >> it's encouraging reading research from throughout your desks for the past couple of weeks, not just year-end targets but the q3 rebound, employment, consumer spending. i wonder if you can sort of distill the overall message you guys have been sending out for the past month or two. >> well, i believe it's pretty optimistic you want to think about a couple of things. first of all on the economics front look at the super forecasters project from th

stuart miller from lennar said they're having to slow some of their production because they don't wantices, which are up 170% since last april they are slowing construction but still building i'm seeing this as a positive. single family are up month to month and year over year multi-family, we need it some but not quite as much. it's a very volatile month-to-month number. strong last month, not as strong this month that brought the overall number down i'll also note that some of the weakness was in the south, and we've had obviously a lot of weather issues in the south. south is a big area for construction we did see very positive numbers in the west. fires probably affecting some of those areas. we're still seeing good construction out in the west the northeast has a small number very volatile month to month that brought some of the numbers down as well this is a positive even though the overall number seems to be a miss. >> the lumber pricing is crazy a carpenter told me one single 2x4 is $6, it used to be $2. $6 i can't imagine scaling it up to a whole house. joe, let me turn to you

but on the positive side, you have so many other drivers you saw phenomenal numbers out of lennar yesterday builders are doing very well so we have seen this little bump from people staying home and improving their homes, we think that that can last quite a bit longer when you see the strength in the rest of the home builders. >> ellen, thank you for your time, appreciate it. ellen hazen. joe. >>> coming up -- thanks, melissa. coming up, a lot, including the owner of the washington wizards. but he's so much more. aol, remember? rev nugs he's more than just that blackrock's rick reeder, bill ruden all coming up. "squawk box" coming right back good morning, mr. sun. good morning, blair. [ chuckles ] whoo. i'm gonna grow big and strong. yes, you are. i'm gonna get this place all clean. i'll give you a hand. and i'm gonna put lisa on crutches! wait, what? said she's gonna need crutches. she fell pretty hard. you might want to clean that up, girl. excuse us. when owning a small business gets real, progressive helps protect what you built with customizable coverage. -and i'm gonna -- -eh, eh, eh.

putting money into work and housing and everything else, i actually had the silly idea of going with lennar and ed lee to china because they wouldn't invest in our city. it actually was a lot of union funds and trust funded that started putting money in the stuff. i was one of the teams that was invited to go, of all places, to main land china to fine some money. but i hope that these comments let you know that i'm honored to be on this commission, and i really want your support to be able to continue to do this work, and more than willing, gang, to take any questions that you might have, so thank you. >> chair ronen: thank you so much. i keep calling you tim. i should be calling you mr. paulson or commissioner paulson, but i've known you so long, it's hard. i just want to thank you for taking on this new role that is hard for you because you're so used to being on the other side of the podium. but i appreciate your willingness to serve in this capacity, and i'm excited that the mayor that's chosen to support you. do you have any questions? do any colleagues have any questions? commission .

the bayview neighborhood association has -- their negotiations with lennar and five point have led toleaner air and reduced traffic congestion in the neighborhood. and joining us today is their board of directors. all right. fantastic. i wanted to ask you just one question. what is the biggest positive change you have seen in the bayview hill-candlestick point neighborhood that you've seen in the last year? what is the biggest positive thing that has happened for you this year. >> we can breathe the air a lot better. [applause] >> we can take deep breaths now because we do have the pollution that we used to have, we don't have the congestion from all the cars from candlestick park, and we definitely are trying to make sure that we don't breathe anything else nasty that's coming from the shipyards. [applause] >> yes, please, a round of applause. [applause] >> now, the community challenge grant has been supporting many community design and implemented projects in san francisco for years, and they played a vital role in hoping build more liveable, more sustainable, and more vibrant neigh

putting money into work and housing and everything else, i actually had the silly idea of going with lennare to china because they wouldn't invest in our city. it actually was a lot of union funds and trust funded that started putting money in the stuff. i was one of the teams that was invited to go, of all places, to main land china to fine some money. but i hope that these comments let you know that i'm honored to be on this commission, and i really want your support to be able to continue to do this work, and more than willing, gang, to take any questions that you might have, so thank you. >> chair ronen: thank you so much. i keep calling you tim. i should be calling you mr. paulson or commissioner paulson, but i've known you so long, it's hard. i just want to thank you for taking on this new role that is hard for you because you're so used to being on the other side of the podium. but i appreciate your willingness to serve in this capacity, and i'm excited that the mayor that's chosen to support you. do you have any questions? do any colleagues have any questions? commission . >> superv

the bayview neighborhood association has -- their negotiations with lennar and five point have led to and reduced traffic congestion in the neighborhood. and joining us today is their board of directors. all right. fantastic. i wanted to ask you just one question. what is the biggest positive change you have seen in the bayview hill-candlestick point neighborhood that you've seen in the last year? what is the biggest positive thing that has happened for you this year. >> we can breathe the air a lot better. [applause] >> we can take deep breaths now because we do have the pollution that we used to have, we don't have the congestion from all the cars from candlestick park, and we definitely are trying to make sure that we don't breathe anything else nasty that's coming from the shipyards. [applause] >> yes, please, a round of applause. [applause] >> now, the community challenge grant has been supporting many community design and implemented projects in san francisco for years, and they played a vital role in hoping build more liveable, more sustainable, and more vibrant neighborhoods.