you heard diana's interview with the ceo of pulte homes. change your view or rating on pulte or any of the other home builders? >> well, the issue for the home builders right now, is that the real dropoff in demand, and we're talking a change in year over year order, to flat year over year in the third quarter. there has got to be some response to that to get demand going again. we think that's going to happen during the spring selling season and going to in our opinion be driven significantly by increased incentives. that is an issue i think that is going to affect both the entry level side of the market which as richard and diana were talking about has lagged but the moveup parts of the market as well. >> do you have a recommendation on pulte in particular? >> well, the pulte has been a little bit less aggressive about investing so our recommendation on that is a hold. we have been more positive on the names more aggressive into the housing market. >> like? >> names like meritage and ryland have been amongst the most aggressive and dr hor

homes, i'm buying pulte." it's either, "i'm shorting pulte," or "buying home depot, lowe's." why? >> it's not been a good trade for the second half of the year. yeah, you get tradeable rallies. but when you get the 12%, 15% rally, you need to take the money and run, because there's been pressure on the sector, and a lot of it has to do with taper talks. >> they report the fiscal fourth quarter at the same time. revenues grew 65% year over year, and the stock hasn't done much. and for that very reason, it's a hard trade. while there might be an opportunity long term, it's a hard trade, because they're very focused on interest rates. interest rates go up, the stocks go down. it's as simple as that. >> we know rates are going up. all right. coming up, shares of macy's hitting all-time high after hitting solid earnings, but that's just the beginning of the retail earnings parade, and after the break, the traders will reveal the other retail stocks they're stuffing their stockings with. >>> and fedex smackdown, shares up 45% so far this year, but someone on the desk doesn't like it hea

diana olick speaking with pulte's ceo just a short while ago. she's here at post nine. good to see you as always. >> you're right. rising mortgage rates are not the only thing playing against the big builders right now as sue said, we have the exclusive opportunity to interview the ceo of pulte homes, one of the nation's largest builders to get his take on why we're seeing this pause in the housing recovery. >> the pause has been caused by rapidly rising rates a few months ago, the government shutdown, i don't think helped anything, and then concerns around affordability as home prices have risen quite a bit. we are still far below long-term averages. i had think we need good job growth in the country to really help the housing market over the long run. >> second in size only to dr horton pulte operates in several categories acquiring entry-level syntex during the recession but now focusing on the move up and higher-end homes in their pulte and active adult dell web divisions. he admits demand is slow for entry level and that's why pulte is focusing on those higher end

pulte, pulte, ♪ when you think about it, isn't that what retirement should be, paying ourselves to do ♪ jon. >>> all right. welcome backp. not so fast, pete najarian. they're quick but not always right. pete made a bearish call on staples. >> when you look at it with lower sales, lower margins that's a terrible combination so -- and the competitive landscape is going to get only more difficult for these guys right now. i think you can wait on the stock with this pullback you're seeing. >> you were getting all choked up about that. >> i was choked up. i couldn't believe it. that was that pretzel burger. >> wait a second here. i have to free up some of that plaque. >> take you guys down every now and then. what do you do? >> i man up. i said stay away because i thought that there was more downside. i missed this move to the upside. with the metrics we had i just didn't see the upside move we're seeing out of staples. >> we deliver with trades on four stocks on the twitter feed, my con, barracuda. >> micron. >> i would sell a little. keep hearing rumors and some have been confirmed actua

they are heading for the higher end pulte brand. >> i think you have to adjust in our case the overalltfolio to take advantage and perhaps the entry level is not 40 or 50% of the overall market like it used to be, maybe it settles in at 35% or 30 percent. >> reporter: they have increased competition from the single family rental market. those who can't afford large down payments or don't have the credit scores necessary are increasingly turning to rental. with new home prices soaring, some builders are shifting back to strategies they used during the crash. >> we're seeing 10% pull backs in home prices from the builders, a combination of incentives, and concessions and just sometimes an out right reduction in the home price. >> reporter: pulte says he's not ready to lower prices. the margins are still too good but he's also not ruling out concessions, either, because he doesn't expect competition from single family rental homes to go away any time soon. in fact, he calls it a long-term play. for "nightly business report", i'm dianna olick. >> reporter: if you have money in the market,

more modest cat pult. >> are they using these for anything other than pumpkin swing sng. >> just for that. that's it. >> isn't this a wonderful country? >> >>> it's not a b.a.s.e. jump, not a wing suit fly or even a rope swing. >> i would call this a trust jump. >> what? >> see the high-flying leap of faith. >> on the next "right this minute." >>> still to come, this little lamb is living it up at the skate park. >> he goes up the ramp. he goes down the ramp. the lamb goes down the ramp. the lamp is an adventurer. >> see how the lamp goes out.we word for your chance to reveal a flat screen tv. >>> you may not understand this but gail and christiane a, as women, we need to be aware we need to be safe. what if an article of clothing could change the way you think about your safety? >> we wanted to provide a product that will make women and girls feel safer when out on a first date or a night of clubbing, taking evening runs, traveling in another country or another potentially risky situation. our product line provides a lair of protection in case of assault. it is, in fact, anti-rapewa

. >> reporter: few nor now he's renting the home and getting a 5% home but lanier, pulte and more are rushing to cash in, even employing the multigenerational floor plans and designs the chinese buyers want. and cash is king, a seemingly limitless amount. >> the price they are looking, it doesn't matter, 800, 1 million, 1.5. whatever, they like it -- they will, they will purchase it. >> reporter: while education and investment are the primary drivers, quality of life doesn't hurt, either. many of the buyers we spoke to said they like the climate and the lack of pollution in california and the political stability doesn't hurt, either. as for where all that cash is coming from, nobody wanted to talk about that. for "nightly business report", i'm diana olick in washington. >>> and to read more about what is driving the new boom for home builders head to nbr.com. >>> still ahead, ever wonder how the world's largest retailer makes sure the shelves stay stocked on black friday? we got a rare look inside walmart's very complex operation. >>> are you seeing more adds on your mobile phone or h

i pult billy goats on it. >> the long-term home is yet to bek=7 determined.rtation commission reveaeó a new troll was only in place one day, removed until permanent work on the bridge is completed then, presumably going back. >> we have a traffic update for you on highway 12 reopened in both directions. it's been shut down all day long. >> good news there. >> good news on the forecast. >> i was just chuckling to myself. reading a facebook message from a mom in south dakota she says she loves the weather here. first year her kids didn't have to wear sthoe suits -- snow suits. sunny skies today, just broken high clouds moving throughout the bay area. that will be a pattern overnight. how about this live view here at abc7 looking south past embarcadero center ask beyond the bay bridge. forecast partly cloudy skies tomorrow. we call filtered sunshine, mild again, tomorrow, cooler pattern by weekend z take us into next week. but satellite right now is still showing high pressure as a controlling factor. keeping us nice and mild and dry. there is a little bit of hi

kwechlt you probably have no idea you get a fast track account, they don't charge every time they pult bunch ever money and take the toll out as he go over the bridges. they take out $100 going over every day. if you're a commuter they run it down to $50, then, they recharge it back up to 100. if you think they're holding too much money you're allowed to once per year you're allowed to tell them you're holding too much. i want you to hold just 20. they will do that. but they may take it back. because they don't want to keep charging and charging. they've got computer models so, but they might do it oochlt all right. thank you >> sure. >> coming up next a mother has a finger of the pulse of silicon valley. >> how mark zuckerberg's sister is helping kids balance scomplief technology. >> one water front development down, another to go. now in the cross hairs of san francisco. plus, 41 hours of retail? growing criticism of k mart's black friday plan z food takeover. what is more popular than hot dogs and hamburgers? to thosuffered in silence... hoped... and lived in a state of fear... welc

. >> i will pult -- put florescent dye on your eyes. >> i have never had such an enthusiastic patientis where the small intestine meets the large intestine. >> more importantly, results. >> in your particular case, it appears -- >> here's the bad news. the bad news is, it's just gonna get worse. >> announcer: don't miss the doctors going to the doctors. >> how did i do as a patient? >> announcer: you have time to shop for car insurance today? yeah. i heard about progressive's "name your price" tool? i guess you can tell them how much you want to pay and it gives you a range of options to choose from. huh? i'm looking at it right now. oh, yeah? yeah. what's the... guest room situation? the "name your price" tool, making the world a little more progressive. >> bridgestone-firestone >> before the break we asked you which of these three celebrities uses kitty litter as an exfoliating scrub and the answer is: "a", snooki! what? >> as you can see, today we are taking over the set of entertainment tonight because we are talking about the celebrity health topics that affect you. now, i must c

and you compare them with the home builders like pulte, toll brothers up 1%, d.r. horton off 5%. as well be thinking we're talking about two totally different, unrelated industries. >> buy, buy, buy -- >> sell, sell, sell -- >> that's because, as a matter of fact, they are two different industries. one's related to confidence, credit, interest rates, the cost of building homes. the other's about the pent up demand to spend on a house you already own. knowing that your home is at last done with going down in value. i think the confusion over these two parts of the housing stories kept people out of the whirlpools. investors just don't believe that they aren't in tandem, that they aren't handcuffed. they're not handcuffed, okay. it's still one more example of how this market's changed in a way people that don't understand yet. it's driving me crazy. the housing stocks haven't done much at all this year. they didn't do much ahead of the interest rate spike and they haven't done much since. i think that's because they're relatively expensive when compared to their earnings. they ran

pulte tking work best when you focus and have for a certain period of time that you are actually start and finish by a prescribed time. melissa: there must be things that are good as multitasking, things to go together. people can't walk and chew gum at the same time. somebody sent me an email. they sent me instead receipt from shoppin online doing it instead. shows me you're shopping online rather than doing whatever it was we were supposed to be doi together. it. things go together better. >> things go together. melissa: like what. >> if you're a student and studying biology and jump over to chemistry and go to physiology that works and running experiment. if you're talking on phone and on compur to go to aol that veer you away from productivity. >> you can't text a drive. you shouldn't be trying to put your makeup on going to work in the morning. you have to be safe and reasonable. melissa: that visual, multitasking versussing different partsf your brain? can you break it down to -- >> they said with this multitking in both of these studies women were able better than men t memorize

lennar, pulte, toll brothers just some of the examples.eople got worried about fed tapering and the yield on the ten-year shot up instantly. the hoshares of priceline up bi today after a strong earnings report last night. but the interesting thing we found out, william shatner does not have $600 million of price lin stock. the ceo shooting down that urban legend on cnbc today. shatner did get paid in company stock but sold it for less than the $1,000 a share it trades at now. news out of iran, new hopes a deal could be reached to slow down iran its efforts to build a nuclear weapon. in return, sanctions against iran could be lifted getting iranian oil onto the world market. if that happens, experts say we can expect a big drop in the price of oil. today oil settling around $94 a barrel. larry? >> interesting point, with or without iran, it's interesting that over the last, i don't know, six or so months, gasoline prices in the usa, nationwide, basically have gone from just under $4 to something around $3 a gallon. that's a huge tax cut for

i heard pulte today tell a pretty decent story. and what else? what can be said about a market where starbucks has to write a $2.76 billion check, more than anyone thought, to kraft, and yet starbucks stock is up 87 cents. if it were $3.76 billion check, would the stock be even up more? no, i have to tell you, i can't even explain this strength. i do think starbucks is terrific. i know, i know. these are all one-offs. a lot of one-offs can create an atmosphere that is always separate from europe and china, which is what is going to have to happen if we are going to shake off their blues. here is the bottom line. we are still in the grips of the money market up pairtive. it spurred a huge amount of chatter from the hedge funds to get in while the getting was finally good. but the group think was so powerful that the selling supply dried up pretty darn quickly as demand flooded back into the marketplace. and you know what? that's what happens every time you're up 20% coming into november. as i have said endlessly, i do not think this time will be a

. >>> and don't miss our exclusive interview with pulte group's ceo.you in a bit. >> all right. thanks. >>> talk about an extreme makeover, netflix is completely revamping its home screen in what it calls the biggest update to the tv experience in company history. julia boorstin has the details for us live in los angeles. hi, julia. >> carl, to encourage you to spend more time streaming netflix videos on your tv set, it is transforming the app for televisions. now, looking to make the netflix experience more immersive, it features more damages, more synopsis and personalized recommendations based on your viewing history and what your friends like to make netflix more social. they say it's the biggest change to the interface in tv history, and first to roll out simultaneously. the new interface will be available on newer smart tvs, blu-ray players, roku box, and the current generation of xbox 360 and the playstation 3, as well as the new playstation 4, which launches friday. the new look will not work on microsoft's upcoming xbox 1 or the apple tv, beca

were to taper, mortgage rates were to rise, you would see homebuilders pulling back being names like pulte. roughly 3%, 4%. back to you. cheryl: good news is bad news. nicole, thank you very much. appreciate it. >>> president obama directing his team to consider some administrative solutions, that's a quote, to address issues in the health care law. this after the about the apologized to the americans losing their current plans. rich edson joins from us d.c. with the very latest on the apology tour. rich? >> cheeyl, still no mention from the white house what specifically the administration is considering. for years president obama had promised his health care law would insure americans could keep their insurance plans. no caveats. the problem? the law features significant conditions and insurance companies are canceling plans. hhs secretary kathleen sebelius is in atlanta selling the health care law to a medical center. she says the administration is still considering how it will try to fix the system to come play with the president's earlier promise. >> we're looking at a number of option

so horton, pulte, k.b. group in the middle of the week. and the other big group, biotech stock, very iffy, but again, gilead, biogenetic, all on the upside. the big question is, can we continue on this, and the important point the traders are making is 15 times forward earnings is where we are on the s&p. that's not overvalued. they're expecting 10% earnings growth next year. that will come down. the bottom line, we're getting 4% earnings growth this year. that's good enough to get to the record highs and still not be overvalued. that's the main thing the market's got going for it. the other big thing is, everybody's very skeptical about the rally. so lo so a lot of money remains. >> some of the read points, the modern day record, new-year highs, new closing highs for, you know, almost three dozen times so far this year. >> yeah. >> the history, the performance, the nasdaq up 32%, it just seems like the statistics continue to confound. >> this is a very, very powerful rally. and one of the big problems is h

check out pulte, lennar, k.b., toll brother, all down between 2% and 4%. tougher. back to you. >> it does. dom, thank you very much. >>> now that twitter is officially public, the social network will be looking at new ways to increase revenue. it will be so much more important. our next guest is a competitor to twitter's vine service. he says if twitter wants to make money fast, it should focus onion line video. we'll tell you how when "squawk on the street" returns. in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price -- maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades wh ou open an account.ee trades i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses,