lennar is moving that other direction. >> six times forward earnings is almost unheard of. and if you're wrong, i'm really worried about the whole economy. so when we talk to laura, analyst very much respected over at luke, she covers home depot and lowe's spoke to her last friday she said she downgraded home dee depots and lowe's at thanks giving she was right. for the stock. now she says she is moving to the sidelines on everything housing in her coverage space. why would she do you that if you're right >> well, first off, you already covered one part of the subject. a lot of the people are trying to guess what is going to happen in three to six months we don't know. that's not our world we're five to ten years. five to ten years out. and we did some analysis today that looks at the way that the return on equity is going to get people rich in this industry we're talking about 16.8% returns based on the growth in book value from generating 20% return on equity using a much higher interest rate today, we computed that the present value of the stock is about $169 a share tha

i think lit be very strong number even though kb isn't the best like toll brothers or lennar i think interest rates will not go up every single day lots of people speculate on when travel and leisure will bottom they want to see what it looks like on the other side we get to hear from delta air on thursday that's the prisonm we need to ue i like disney for my trust and think america's best can keep running. i'm skeptical about how far delta stock can go in this environment. friday is when earning season begins and we could have some really fireworks on her hand which is is what happens when you get gigantic runs in stocks that don't have all that much good to say. take wells fargo we have a huge position for our travel trust you can follow by joining the c cnbc investing club. it's a lot of fun. i think 2022 could be a much better year for wells fargo since any year since 2017. i think it pulls back, we can keep telling you to buy it you have to stay tuned then we get to hear from black rock which is surprised to the high side. you'll get a great analysis of the world. not just his u

maria: is this a bargain here because it was sold off 6% yesterday on lennar, is this a good attractives done pretty well. there's been some concerns about rising mortgage rates. in the broader context we think does create a long tailwind for home buyers. maria: great conversation to you all. thank you so much. keith fitzgerald, gregory and joanne feeney, great to see you. have a great wednesday, everybody. thank you. much more ahead this morning. the u.s. murder rate is at the highest level in 25 years. the cities seeing the biggest spike in violent crimes and random attacks, coming up. plus, senator schumer's last ditch effort to keep the democrats in control, federalize all elections. south carolina senator lindsey graham is here weighing in on the talking filibuster next hour. joining the conversation all morning long, dagen mcdowell and monica crowley. we'll get back to this fantastic panel when we come right back. you're watching "mornings with maria" live on fox business. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you d

are sanking the home building etf which includes building material makers down slightly names like lennarpoulty and toll are taking a hit. interesting, though, the weekly mortgage applications we got today showed a big jump in home buyer demand an agent i spoke with said he's seeing tons of first-time buyers worried about rates trying to get a very early jump on the spring market because they are afraid if they wait they will get priced out >> that is the concern as diana mentioned the higher rates are definitely biting the builder stocks the home builder etf is down 12% from its 52-week high. our next guest doesn't see the selloff ending downgrading sick names in the space today. joining us is keybank market executive research analyst ken zenner great to have wyou with us. >> hi, kelly. >> we know the long-term story, the demographics are good, the housing shortage issues -- what's going on here >> we asked a simple question in our piece today called wow, stands for wall of worry, which explains how home builder stocks do when the fed is tightening. in 16 of the last 18 cycles back to 19

some resistance to the selloff from the home builder stocks that includes names like toll brothers, lennar we see ten-yearst treasury yields slip lower after a strong start to the year the move higher in yields has had the home builders under pressure the spider home builders, xhp and itb down around 15% so far this year. as we continue to watch the moves in treasury yields, keep an eye on home builder names standing under the green in a sea of red >> very interesting. >>> meantime, the activists are out in force kohl's. and then unilever from transnelson pelt david faber has not approached any unilever with any requests and peloton, and activist shareholder going after peloton in a letter asking them to fire the ceo and put themselves up for sale all three companies mostly h higher today peloton up 7%. we have the author of the peloton story over the weekend welcome. c cara, peloton, this seems to be kind of an of course play at this point right? >> it's true if you look at shares, they've been on a downward trend for about a year down from the high of 80%. i think a lot of activists and

pictured he agreed so in addition to this more traditional photo, there's 2 as the gray blazer on lennar showing off or taps sleeps. their letter says she's very nervous about posting the photo on her linkedin page. but she says her boss key for the confidence that she needed. looks great. both waste. now, this is the hottest game on the internet and rich demuro talks were dull in today's tech smart have you heard of this? i have not quite sure what it is, but i'm curious to find out also does rich know the answer to did it to today's puzzle? wardle is a free daily online word game that everyone seems to be playing. >> here's what it's all about. and some tips to help you win. >> so that means we have the are in the right place wordle and there's also an essendon, ian, this weren't a simple online work game that suddenly everyone seems to playing. it's a great game. first of all, right. that's the basis of anything being popular daily game gives you 6 chances to guess a 5 letter word. so i'm thinking scale, but i know isn't the word. so that would not be a good correct? letters are highl

kbh goes to sell, they adopt like lennar. based obviously on the tailwinds being over work from home may be over, rates going higher against this is is, look, we can't build a lot of homes our rates are going up, we're making more money, but david, there are very few people in the business who want to buy these they're trying to get out ahead of them. it's what i call the playbook. they're not going to think about if there's fewer homes they say i have to get out of these. this is the disconnect when rates go up. what are you doing at toll brothers >> you don't want to be, as well, in some of they highs multiple revenue stocks with very little earnings you don't want to be some spacs. you don't want to be in any of cathie wood's arkk. >> i want to be in companies that make things, do things, pay for them and are profitable. it's a pretty simple message that's what i want you know what term i heard and haven't heard it since 2000 -- pre-revenue. >> yeah. >> look, i mean, wheels up amuch as i like blade, they're getting i don't

halliburton was a huge one lennar, black rock raised their 18%.vron this morning raised their 6% chevron's got a 4.5% dividend yield right now. why are dividends important in 2022 there are several reasons, first, cash in hand is now very important. people want return on their money right now. real money, not buybacks they want real money back. this is a significant contributor to total returns if you're making 20% returns on the s&p 500 on prices a year, you don't care about a 2% dividend but if you're expecting 5% returns on the s&p on a price, if you can get a 2% yield, that's a very significant contributor versus 0% yield. so on the low expectations for price return environment dividends become very important. and when companies increase the dividends, it's a real sign of confidence they won't do that with buybacks the buybacks they can pull back, nobody cares you pull back a dividend, you get a lot of unhappy investors finally, it's a hedge against inflation overall. this is a big issue. and we'll keep an eye on that. there you see the s&p 50

kb homes up 10% this morning that's lead you to -- >> lennar with a 50% hike, cramer would be payingese two names if he were here. >> obviously it's a group move at this point. you know, they trade lower when longer-term yields go up and mortgage rates get set higher. does a half person really move that much. it's been the shadow play. that's worked well under recently and then looking at over-valued, the top three, all in idaho. we mentioned chips, and chips will definitely lead the way this morning the cap ex forecast for the year, 40 to 44 billion they call it a multiyear industry megatrend, trying to tamp down, i guess you could call it concerns their point, of course, is that their number of things the chips are going into, not thatted market is necessarily trying to be vigilantes and don't spend. it seems like that's what you're noted for. i know all the autocommentary is this year finally we have loosened up in semis it doesn't seem as if it's in the bag, so clearly that's something that the market wants to see it's been tough to make that case that we're kind of headed for th

note on home builders the firm downgrading dr horton to sector weight from overweight, downgrading lennaroll and kb home keybank says inflation concerns are superseding favorable housing fundamentals and those stocks are all lower today on the back of higher mortgage rates as well you can read more about the call on cnbc pro. mortgage rates near a two-year high is going to be a threat to some of these home builders and the tremendous games >> sector down today as you were saying meantime, the rest of the market slipped a little bit as well back down to half a percent of declines for the s&p 500 >>> time though for a cnbc news update rahel solomon has it for us. >> here's what's happening at this hour. the faa has approved more commercial jets to land in poor weather at airports with new 5g services rolling out >>> wisconsin's supreme court hearing arguments over redrawing the state's political boundaries democrats say that the republican-backed redistricting map is too partisan. one justice agreed and said that other maps can be accused of the same thing the court and its conservative maj

rising interest rates part of the thesis analysts at key bank have downloaded home builders, you see, lennaroll brothers, they're accelerated. dr horton was a buy rating, now more neutral a. lack of near-term catalyst playing to why analysts are downgrading home-related stocks. watch those. becky. >> all right dom, thank you very much >>> when we come back, shares of procter & gamble right now are higher after the company came out with better than anticipated results. the stock right now up by 1% we will give you chance that to talk to the ceo jon moeller to talk about the results, the supply hain, inflation and maybe most importantly the pricing power that company is seeing right now before we head to break, let's get a check on the markets the dow component, it's indicated up by 87 points. s&p futures up 15, the nasdaq up by 55. "squawk box" will be right back. to your financial plan. bill, mary? hey... it's our former broker carl. carl, say hi to nina, our schwab financial consultant. hm... i know how difficult these calls can be. not with schwab. nina made it easier to set up our financi

lennar raised its dividend, right? lauren: by 50%, from $1 to $1.50. how about that? big demand despite the supply chain and labor issues. stuart: the home builders are doing well. now i can say thank you, lauren, and i'll move on to something else. [laughter] we have a tesla owner. he claims he uses his car to mine $800 worth of cryptocurrency every month. his create ins say he's lying -- critics say he's lying. we'll ask him about that, because he's on the show in the next hour. >>> the president's approval rating plunging to 33%. he heads to capitol hill today in hopes of killing the nat filibuster, but can he get around senators manchin and sinema? i'll ask bret baier next. ♪ no one makes me feel like you do. ♪ upside down, boy, you turn me -- ♪ inside out and round and round. ♪ upside down -- if you used shipgo this whole thing wouldn't be a thing. yeah, dad! i don't want to deal with this. oh, you brought your luggage to the airport. that's adorable. with shipgo shipping your luggage before you fly you'll never have to wait around here again. like ever. that can