carleton: what is the opportunity you are seeing with lennar?w: it plans to spin off its non-home-building operations which could be worth 1/4 or more of its stock price and there's a secret way to play it which is class b super voting share which is a 15% discount to the better-known class a stuff, lower dividend and the two questions could be combined. the class b stock hitting 69 could be a good opportunity. ben: why is home depot stock down 27%? %? lowe's is down 21%. i thought we were frantically working on our homes, you still like home improvement, which what is your favorite? andrew: home improvement is one of the better stocks. investors don't think good times will last, higher mortgage rates will bite and housing sector will slow but home depot the industry leader, lowe's is making up ground against it. i might lean toward home depot, a 2% dividend yield with better locations and better relationships with contractors and is a high-quality company trading for below-market multiples. jack: the homebuilders contracts lock in those profits

. >> moineantime, that drive in yields, take a look at lennar, dr horton. the sector may be due for a secretary look let's dive in with carter worth, worth charting what are you looking at? >> you bet, sometimes you can try something for trade. it doesn't have to be a value calm it can be ska long-term calm that was point of the client notes yesterday evening that home builders seem a bit extreme here playing for a perspective bouvenls let's look at a couple charts this is the actual anne anne 500 home builders subindustry as constructed by stated in force what we know is and you see the annexation, this huge new high, of course this 34% sell-off, which leaves us where? right back at the prior peak when home builders peaked in '05. the irony, the interest rates were 5 and a quarter in '05. right now their 27 the other is they were double essentially what they were in '05 and what they are now. so fundamentals are they cheaper then than now? i would think so are rates more favorable we would think so. either way, you can trade on the long sights. look at the

all really came together under the same cause and that is to fight against big corporations like lennar and tetra tech who need to finally own up to their wrong doings. >> reporter: we reached out to tetra tech for company on the settlement which the -- for comment on the settlement which the company opposed. we have not heard back. >> san francisco's mission bay neighborhood added much needed affordable housing today. mayor breed took part in the ribbon cutting ceremony to officially open the sister lillian murphy community. 152 units of affordable housing in the heart of the mission. the homes range from studios to five-bedroom apartments. they are meant for households that earn roughly $75,000 for one person up to $106,000 for a family of four. >> we know it is very, very expensive to build here and so having both private and state financial support to get projects like this done is really extraordinary. >> the development is part of the office community investment infrastructure redevelopment plan. that department says it has no sar brought more than 6,000 to the mission bay neighbo

that pairing actually would have won i think andre iguodala won with tesla and, believe it or not, lennari won with ford and amc. you take your phone out and type to your kids i am not an idiot right? the people who you most want to think, you know what, dad is not so dumb, even though he didn't know how to work this. >> we could argue the last year, maybe even the one before that, favored a lot of the retail momo trades listen, favored a lot of stocks period it is a very, very different environment to be picking stocks into this year do you think that will change the people who would do well >> i spent a lot of time and i don't want to reveal which i have on my list, but in the old days you were trying to find something that would triple or go to zero now we're looking for something that could be up 20% to 25% because we don't have those kinds of stocks anymore. by the way, those are the stocks that hurt a lot of people in the robinhoods of the world. when you go to the track or when you go to a gamble you are either going to get a rip up or win. most of the time you get a rip-up these a

and ford is not acting well either and a slew of the home builders have hit new 52-week lows like lennaro another important, probably most important group essentially in the last 24 hours at a new low that is iyt, transports wore down 6% in the last six or seven trading sessions and bond etf, you won't be happy when you see the quarterly reports, the vanguard bond market hit a 52-week low in the last 24 hours. muni short-term treasuries all new lows and this is very typical of the whole late cycle stage where cyclicals don't do so well and defensive hold up pretty well. back to you. >> so a tough day for the banks. now let's get over to the bond market where the ten-year yield once again hits a new three-year high rick santelli tracking the action what going on? >> moving higher in yield and not so much. let's call it the catch-up phrase, not the condiment. it seems markets have put the tightening in that it sees now the fed has to deliver look at a three day of two-year. this is interesting. notice the high yield there right in the middle yesterday, 2.6% keep that in mind. now think 2.4

. >> reporter: 100,000 homes with big names like pulte, lennar, dr horton and toll brothers expectedone of more than two dozen developments in the works around phoenix >> they're expecting the growth in this area to be a million people and there isn't the water to sustain that growth. not with groundwater. >> reporter: asu senior water research fellow kathleen ferris produced a documentary about the state's 1980 groundwater management act it requires developers to prove there is 100 years worth of waterton ground in which they're building douglas ranch sits on an aq aquifer, which will be its primary source of water. >> the problem is with climate change, there aren't backup water supplies that you can use to save a development that's based totally on groundwater if it loses all of its water supply, there is no water to back that up >> reporter: this whole area is clearly at the crossroads of construction and climate but the u.s. is facing one of the worst housing shortages in history. it's estimated we need over a million more homes just to meet the current demand the phoenix area i

to overweight at morgan stanley, saying it has the most upside of the gaming stocks and shares of lennarng its price target by $18, citing cost pressures across the board cliff hodge is at cornerstone management welcome. we'll go with breaking news -- excuse me, we're going to breaking news with julia boorstin on twitter. >> yes the news is out. elon musk, who acquired twitter, will become a private company. it's going to be -- twitter is to be acquired by an entity wholly owned by elon musk for $54.20 per share in cash a valuation approximately of $44 billion. this is the amounting that was originally proposed by musk. he originally said that he was not open to negotiation there. i'm going to continue to dig into this. oh, here we have more here so just for a little bit more here they say that twitter stockholders will receive that $54.20 in cash for each share of common stock and that represents a 38% premium to twitter's closing price on april 1st that was the last trading day before musk disclosed his 9% stake in the company there's a statement here from brett taylor, who is twitter'

dr horton, lennar, home depot new lows pay attention there. there's a sector that is fading.tors, we've got a lot of stuff that is just quietly fading away, jim. this morning was talking about the transports that's another sector that is just looking terrible. so the high for the s&p was march 29 thd we'll use it as a date here. transports down 10%. since the march 29th close where the s&p was at a high. home builders down 9%. retail down 9% banks going into earnings next week down 8% the most important parts of the markets like financials are starting to fade here. what is still standing well you know, talking about new highs with utilities stild holding up energy is holding up we'll stick with march 29th again. y utilities at new highs consumer staples holding up. energy is flat health care is modestly flat metals and mining topped out about two weeks ago. it's down 1% let's say commodity stocks and defensive sectors are holding up for the moment better. so here is the problem, this has very big implications for earnings we'll go into earnings season. it's a very treacherou

multiyear opportunity and some of these stocks are incredibly cheap here, like lennar.to buy a house and they say 5.13%, well, that happened quickly from the 2% plus that i thought i was getting just a couple months ago. does that put a cooling on the market? do people say i'm going to wait because mortgage rates are too high? >> people have waited so long already, maria, that i think now they're just getting desperate. like i said, i think what they'll do is try buy a slightly cheaper house. and in this kind of environment there's also a lot of concerns about recession which i think are a little bit misplaced here, i think it's premature to worry about that given what's going on in the production side of the u.s. economy. it's still really strong. maria: that's what we're hearing a lot of. keith, mitch, joanne, great to see you all this morning. thank you so much. we appreciate your time. much more ahead this morning. i'll be speaking with new york's gubernatorial candidate. and devin nunes is back withs us to weigh in on the situation at twitter and elon musk. the com