home builders started moving down lennar, pulte and dr horton. lennar was $60 a couple of months ago these stocks had big run ups more than the overall market what's up? not much pharmaceutical stocks are up merck is up. a couple consumer mnames. hormel and campbell. we are down maybe .50% it sounds hard to believe. we are only down .50% for the month. guys, i can't help but think powell is delighted with the stock market the stock market is a wealth barometer and powell talked about pain to households and businesses to the extent that households are invested in the stock market he wants pain there. he is getting, i think, what he wanted today guys, back to you. >> well, folks and the fed is trying to get this result for a while. now maybe investors believing they are serious bob, thank you >>> rates on the move after the comments from powell rick santelli is more with that. >> if we consider the chairman's speech, it was shorter than many expected and trait to the appointed. there will be inflation fighters no matter what how about the market re

hit today and we saw pulte, dr horton and remember, we saw big moves with some of these names and lennarand it's now come down of a little bit these stocks have outperformed the overall market curiously, gold stocks are getting hit. that's not what's happening here what's happening here is they're anticipating slower global demand overall slower consumer and that means less demand for gold big sales in india and big sales in china around gold, so it's a lower demand here and a bad day for everyone and i want to remind everyone, for the quarter the market is still up nicely. the s&p 500 is up 11% and even the russell 2000 and the transports and the technology-ridden it's down, and hopefully we're up for the quarter. back to you. >> thank you >>> now to the bond market which is reacting to powell's speech and a key inflation index that did show pricing frpressures ar easing in july and rick santelli tracking all of the akction. >> it's been's day for global sovereigns in general. if we look at january of next year and keep it simple, what we see now is that a price of 9634.5 and it's getti

is the best way to go to pick a portfolio of individual stocks which was looked at rid there and lennar d.r. horton they say i can't do that, i want to go with an etf or a fund. >> good, tyler the group has moved very much in tant empup you can say buying a group is a reasonable thing to do, however the stocks have been battered so much there's no rain to be cute you can go with the biggest and the best and that's d.r. horton. >> all right john, talk to us about these stocks we know that the p-es have crashed to four and a half times forward earnings we know the news flow is not going to be great in terms of the level of home sales and that kind of thing in the months to come, but what is the potential upside here that you see and what's the hurry for those who might just want to wait this out for a while? >> sure. good question. it's all about the second derivative and when we start making some kind of momentum july, by all measures is going to be the trough in new home sales, and i think we start seeing a recovery from there and that is when it's time to get in in our view. if you get

for example, so some of the big downside moves are p limit te, lennar, all notely w notably weaker evennings stories are hard to push forward simon property group had amazing comments about the occupancy levels up in their malls, tenant termination levels were at record lows. not moving up, but at record lows they raised their different, buying back more stock, yet the stocks had a nice rally the last couple weeks this was generally a fantastic earnings report. finally, the good news is that the big megacap tech stocks holding up pretty well micron nvidia and alphabet all positive today. >>> the yields are moving higher rick santelli, what is playing here more on the market or the trip by pelosi? >> it's that and technicals. he a three-fer day the second of the day's trade took that level out, the entire curb sold off pushing yields up. as you look at an intraday of tens, what you need to notice is right around 11:30 eastern, can you definitely see the pelosi effect, as rates moved up. let's put a face on it yet ten-year note yields closed, so we have all the fed speaker trying to talk

you can see lennar down over 1%. today's data dump has investors convinced that aggressive rate hikes are going to continue, and the new york fed if president, john williams -- a voting membe. this is what he told "wall street journal." quote: i do think with demand par exceeding supply, we do need to get real interest with rates above zero. we need to have somewhat restrictive policy to slow demand, and we're not there yet. we're still quite a ways away from that. federal reserve president rafael bostick also chimed in saying if incoming data shows inflation has begun to slow, it could be a reason to dial back the size of future rate hikes, but he is not talking about cutting. and investors are running scared. but, hey, sometimes the fed starts one way but acts another way. let's get straight to the floor show and our traders, tom hayes, scott hellty. tom, my chance -- shellty. any chance this is all tough talk by the fed? >> yeah, i think as we a talked about last week, lauren, this is talk hawkish, act dovish. it'

horton, lennar, even toll brothers that had been higher on remarks that they were seeing renewed buyer interest in the last few weeks while powell didn't say anything about housing specifically, he did talk about maintaining restrictive policy stance for some time and that means higher rates. mortgage rates don't follow the fed exactly but are influenced by fed policy. they loosely follow the yield on the 10-year treasury and that yield spiked way up during the speech, came up sharply right after. we actually saw mortgage rates pull back a little bit in july and the first part of august, likely why toll saw that bump, but they began climbing sharply in anticipation of this speech today. mike >> yeah, diana powell's comments about long period of restrictive policy certainly having an effect i think also perhaps there may have been some folks wondering if he would give a nod in the direction of the pain that's already been felt in housing in terms of the activity declines, even the softness in prices, and maybe make that a gesture of saying, well, we've already done part of our job. clea

reportedly wants the news organization to push further into subscriber-only bundles and finally, lennarm neutral to outperform they say there are no near-term catalysts for a significant move higher from here those shares down about half a percentage point right now >>> data showing further slowing in inflation, so will the fed stick with the hawkish hikes joining us in a cnbc exclusive is richmond fed it chair, tom barkin good to see you. >> thanks for having me. naturally cpi, ppi index, university of michigan sentiment, it follows the fed survey in a similar direction. how does it filter into your view of whether the fed is on course to get inflation back to target, what it means for policy in the near term >> well, wednesday's day, the ppi data was all very welcome. we're happy to see inflation start to move down i would like to see a period of sustained inflation under control. until we do that, i think we'll have to continue to move rates into restrictive territory >> a period of sustained declines in inflation. so multiple months how do we know when we're there? >> well, you'd li

: homebuilders are up, total is up 2. 7% but if you look at dr horton that is higher by the same, lennar new home sales report. stuart: you covered that one, down 1% from last month and down to the lowest level since april of 2020. fortunately, darrell fairweather is with us, the chief economist of redchin. the market is slowing down, prices are softening. i don't see any bidding wars. are we in a housing market recession or are we just going into one? >> recession is hyperbole. the housing market always goes in cycles where it will be hot and then down, the market was so hot earlier this year that it has to cool down. so it is a good thing for the housing market with higher mortgage rates. it would have been worrisome. stuart: asking prices for homes are plunging in towns, does that surprise you? >> what goes up must come down. some towns like boise, idaho where people were fighting tooth and nail, bidding hundreds of thousands over asking prices and that made sellers feel they could get any number out there and with higher mortgage rates they can't stretch anymore and they already have

september and housing stocks fall drastically, and mortgage rates, look at this, the are horton, lennaror technology, 2% decline for consumer discretionary and the yield curve further invert as wide as 36 basis points. ashley: the untrue -- other interesting thing, how far out before they stop these rate hikes or reversing or depending, maybe reducing the pace of the increases tells the market this will go on for a while. lauren: the market was pricing in said maybe there is a cut coming into thousand 23 and maybe there is no intonation that could be something based on comments today and all the officials before powell. ashley: yes, they are all singing from the same hymn sheet. the housing stocks with rising rates making mortgages more expensive, it has been cooling off. as the selloff continues, look at these individual stocks, we are looking at our firm. >> the buy now and pay later lender down 20% so their forecast was well below estimates and their guidance, revenue growth will slow to 37% from 87%. that is a sharp slowdown, stock is down 70% this year. general motors is not moving