first up, lennar getting an upgrade from raymond james along with pulte and kb homes.day here with our trades today is david wagner, portfolio manager at capital advisors. what's your take >> i've loved home builders for a very long time i've been overweight there for about the last 15 months, and i think that momentum can continue because it feels like a lot of the positive news coming out fundamentally and macro, you know, is just keep flowing in. just look at the recent data on the resale inventory the number of new listings entering the resell market continues to surprise to the downside i think it was down like 21% year over year just last week alone. i think the existing home inventory environment is going to remain challenged given the fact that 60% of the outstanding mortgages in the u.s. have a rate lower than 4%, and that's relative to current rates of about 7%, so with existing homeowners hesitant to give up their cheap mortgages, home builders have started taking market share away from that resale market and for lennar, the stock we're talking about, they w

we're, like, three quarters of that, and lennar is the biggest beneficiary, because they really knowme wow. they've always been -- stuart miller, executive chairman, really the dean of the group, very, very impressive. but they also have great things. pulte, terrific quarter. and then toll, which was standout, but the average home, a million bucks. america is a rich country. go overseas. you will not believe the amount of wealth that they think the average person has now, i think we're bifurcated and these homes are of the province of wealthy, but wow, they're killing it >> yeah. you're saying about going overseas is what you can afford more overseas than you think >> no, no, they don't -- overseas thinks there's one class of people in this country. what they don't realize is there's a second class where this would be a dream unfulfilled. if you tell them that we are a dickensian world, they don't believe it because they only see the traveling people there was a denver flight to reykjavÍk that was, like, we're overbooked and whatever. everywhere you go, royal caribbean, norwegian cru

this is the lennar white house official, but the ceos have big names, tim cook, elon musk, why are soisiting china and wise china not making the same effort to visit the u.s. so what does it mean to have a cabinet level official there to figure out how to the risk or decouple? >> restarting some of the negotiations, restarting the relationship, china is the world's second-largest economy so it makes sense to the treasury secretary from the world's largest economy going to the second-largest economy. such a large market. ultimately i think a lot of these tech restrictions are absolutely staying in place. what we will see from u.s. business is they hope it will be limited as possible, the national security advisor talks about this as a small lawn with a high fence. they want to make sure anything not inside the lawn that china remains a open market for businesses as well as every other market in the world. >> great to see you as always, thank you. coming up, a first interview with the ceo of xpo. talking about what the second half may look like for ts hi economically important sector. m

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other home builders, lennar, partnered with icon, they're building much larger homes absolutely the higheromes are one approach people can take our view is that at eco material our core mission is on sustainability so, sustainability with these 3d-printed homes and green cement technology is going to go two ways one, it's going to be affordable homes, high-quality homes, and we have a housing crisis in the united states, and we have to do it environmentally responsibly 40% of emissions are from the construction industry, of which 8% alone come from cement, portland cement. our material has virtually no emissions associated with it actually works better and is less expensive than the portland cement-based alternatives out there. >> are there the incentives in tax law or wherever to capture the economic value of that ecofriendliness or is that yet to come? >> that's yet to come in most markets. some markets, like california, where they are working on reducing the amount of portland cement cement is the glue you use to bind together all thinge aggregs to make your concrete. 4.5 billion tons a

lennar up 2/3 of a percent, pulte up half a verse.values will fall 2.4% over the next year as mortgage rates weigh on the markets. where are mortgage rates? according to freddie mac the 30 year average fixed-rate as of july 20th, 6.78%. remember the good old days, january of 2022 when they were at 3.45%? that is part of the big issue here but our "countdown closer" says mortgage rates are headed down, not up and investors with a two-year horizon can reap the rewards on one specific sector. horizon investments cio scott joins us. scott, you might be the only one who thinks mortgage rates are heading down. why? >> liz, thanks for having me. the reason is pretty simple really. the fed is going to be done after wednesday. that means we've seen peak interest rates this cycle. we're having a little bit after growth cycle that means the 10-year interest rate will come down. the other thing affects mortgage rates volatility of interest rates. those definitely will be coming down after the fed is seen to be done. in terms of what would drive m

challenged by tesla, challenged by extendedtechnicals for the home builders, clearly, with dh horton and lennar, that's for sure i think the answer to the question really in terms of what sector right now, i don't think technology is going to give up the leadership i think technology establishing leadership in the market is a really good thing because we haven't had real leadership since march of 2020 for an extended period of time. so i will have to tell you, look, momentum and quality are two factors i'm looking at in both of those instances they are probably going to act as a catalyst to have me further, okay, take more positions towards overweight and technologies themselves. does that mean i'm not going to own jpmorgan or visa and the financials and mastercard? no, i'm going to own those quality names. i'm going to own eli lilly and merck. industrials i'm going to own old dom dominion i'm going to find very selectively companies in the areas and the sectors of the market that more recently are beginning to see inflows of capital but i'm going to make sure that those names are really, reall

we still don't have the elixir which is the wanls and then we've got to get -- lennar is the most importantf this market. >> len march is the key to the market why? >> you can't stop the home builders. >> piper on zillow today. >> people are checking their houses again if toll brothers, every house is over a million bucks, you should check your house i think we're back to house poor >> they mentioned adding more premier agents i think they go 42 to 62. >> the return on investment is very good. look at toll million dollar house, bidding wars, mostly cash. doug yearly, fantastic. >> what turns the home builders? need more inventory. >> 1.6, got to build 2 million if you're talking to doug yearly, he'll tell you we build as many as people need >> it's a funny world in which the home builders continue to go higher and mortgage rates are over 7%. >> that's what i'm saying. the market is counterintuitive which is why your larry sum merps analysis leaves me cold. >> i don't know why you brought larry into it. i don't know how you knew i was talking to him this morning. you just pick that up? >> yo

. >> i'm looking at the screen of types of companies that have entered it you have lennar, and is thisned seem to be lining up and they're not overpriced yet how do they get in there >> one of the successes of our models that have journd performed the growth and value index, it's sector neutral we're trying to help our clients that have took more or less fully invested or look for areas to put their money we are looking within sectors, it's not just go by tech or go by profitable tech, but go by profitable industrials, go by growthy real estate stocks a sector that's been under pressure for a while we look for companies that kind of rise to the top within their peer group, and that's, i think, ultimately how most institutional investors can't by one sector and avoid the other ten. they have to find a broader exposure, and those aims that pop up look for the best of read within their peer group. >> i guess in the first half of the year, you could have bought one sector or at least seven stocks do you think the leadership will continue in the second half of the year and be the same kind