hoorten and pulte group at fresh 52-week highs.khouw says one name in the space could get nailed when it reports earnings next we can. mike. >> well, nailed. that's a little bit harsh. i'm not sure nailed is the way i put it we'll look at selling a call sfred in pulte homes which is reporting. when you sell a call spread it's not a bet that it's going to crater it's really more of the stock may hit a pause kind of a thing. so why we're are we sell a call spread this is a way you can express a neutral to bearish view obviously it's had a terrific run. this is also a situation where you look to collect premium. and this is a situation where going into earnings sometimes we see elevated options preemia yums and trying to dlekt that a nice thing like these out of the money credit spreads they tend to have a better nan 50 eye probability of profit. and the reason for that as we are about to demonstrate is that you can have three things happen to a stock we can see here what happened with pulte my bet is we have had a strong run coming i

member of pulte homes. nice to see you. >> great to see you, scott. >> that is the question. this trade has been hot. >> i can't talk about the specific companies but the housing industry and the economy is very strong, especially with consumers. you know i'm a big investor in housing products companies in particular margins are stronger than ever, ebitda is higher than ever actually m&a activity trading at an all-time high in building products the market is hot. >> new home sales fell in september. existing down too. is there a number on the ten year that scares you >> i think if this thing increases 200 or 300 basis points housing and real estate change we saw a softening and the markets rebounded as a result. if you would have had movement in terms of the fed you probably wouldn't have a strong 300 days. >> the biggest question out there whether the consumer can hold up. the manufacturing economy has been tough the consumer has been the pilar of strength. you don't feel like there's any crack. >> i was t

expirations call spreads. >> mike you get the last one. >> yeah, i like selling credit spreads into pulten an interesting week that does it for us here on "options action" you can catch us back next friday at 5:30 meantime, do not no anywhere you know who is right around the corner "mad money" starts now - [narrator] the following is a paid advertisement for the hoover smartwash. when your throw rugs need cleaning, you toss them in the washing machine, easy. if only you could do the same for your carpet. instead, here's what carpet cleaning looks like for many of us hauling around heavy, bulky rental machines. they're a hassle. and do you really want to bring someone else's dirt into your home? and then there's all the mixing, soaking, waiting forever for your carpet to dry. no wonder we sometimes give up and call in a pro, but that's a whole other level of pain. they're all over your house. you're left with a damp carpet and it costs a fortune.

probably live in pulte home. >> we can't deny the elephant in the room, charles.he rate is where it is, multiples are higher. that is big part of the story. charles: we're flattish rest of the year unless something happens. >> we're stepping over a lower bar. that is what we're getting. >> we have pretty easy comes next year. people are discounting with that. charles: love having these conversations brian and david. if you listen to democratic front-runners we're hanging on by a thread. how would warren and sander's plans help our economy? we have presidential hopeful john delaney will weigh in next. later in the show, hillary clinton receiving criticism from both sides of the aisle after she suggested tulsi gabbard is a russian asset. is all the noise paving the way for hillary to jump back in the race? ♪ >> we have the best economy. we have the best unemployment numbers. best employment numbers, we have the best of everything. we rebuilt the military. with all of the things we've done, regulation cuts, biggest tax cut in history. so many things are, our energy w

region when turkey conducts so long planned offensive against the games the target the kurdish why pulte video has already emerged appearing to show u.s. military vehicles leaving their positions near the border with turkey the kurdish forces who are. uses terrorists but who were instrumental in defeating i still have begun digging antitank trenches they call washington's withdrawal and stop in the back they're also currently holding prisons full of former islamic state fighters americas says that in the event of an offensive turkey will be responsible for the detained militants. the united states government has pressed france germany and other european nations from which many captured isis fighters came to take them back but they did not want them and refused the united states will not hold them for what could be many years and great cost to the united states taxpayer turkey will now be responsible for all isis fighters in the area captured over the past 2 years in the wake of the defeat of the territorial caliphate by the united states our senior correspondent mark gasnier looks at why

and at the bay bridge pulte toll plaza looks good. traffic is backed up and a little bit of the cash lanes. >>> and the north bay and a small part of san mateo county people are bracing this morning for the possibily another round of pg&e power shutoffs today. pg&e is expected to tell us sometime this morning how many customers will lose power and where those power shutoffs will be needed because of high wind and fire danger. the pg&e has warned 184 the pg&e has warned 184,000 customers in 17 northern and central california counties they could lose power. that includes about 35,000 customers in sonoma, napa and san mateo county. here is a closer look at the area and napa county that could lose power. this includes 7500 customers in the city of napa, calistoga, lake berryessa, st. helena and nearby areas. in sonoma county, almost 27,000 customers could lose power. they are all in the eastern part of the county including the city of sonoma, santa rosa, windsor and gordon bell. and in san mateo county less than 400 customers in and near

which is the pro union voice looking at the figures from the cats like government's own statistics pulte 4 percent of catalans want to see space however just over 48 percent want to remain a part of the country this is a pro union demonstration is here where the conservative and centrist parties have called for people to mobilize to make their voices no reason because they feel that they are better as part of spain all of that as a separate entity. you know. i was born here my parents are catalan and i don't want catalonia to separate from spain because i come to the myself to be confident and spanish and the regional government is only going to going one section of cotton on society. give us a little what's it going to be like like the british with their excess of what are we going to separate from poor russia. will it really isn't worth it we meet isn't it together. and the tensions haven't been this high since the illegal referendum in october 27th see both sides now and not backing down from. politicians president charge of that region and the madrid section government reason being b

is the fruit union voice looking at the focus from the facts like the government's own statistics pulte for a sense of catalogs want to see space however just i was 48 percent want to remain a proxy of the country this is a pro union demonstration this here where a conservative and centrist parties have pulled for people to mobilize to make that voice is no reason because they feel that they are better as part of spain rather than a separate entity let's look at the honestly not you know i'm a cartel and i was born here my parents are catalan and i was on one catalonia to separate from spain because i come to the myself to be confident and spanish and the regional government is only going to going one section of cotton on society. give up us out of the way what's it going to be like to like the british with their excess of bottom are we going to separate the computer or ridicule equally it really isn't worth it we need to listen to 2 together. of attention say haven't been this high since the illegal referendum in october 27th change both sides now are not backing down from this meeting

stuart: bull pulte everyone. >> pulte, we have 800,000 people, stuart. stuart: we got it.rich should be concerned about wealth taxes. why should middle-class americans be worried? ashley: it is interesting, critics say the alternative minimum tax, the amt stu, no, this is interesting, was enacted back in 1969. they're trying to bring some sort of analogy between the amt and what elizabeth warren and bernie sanders are proposing. amt came back in 1969. was essentially aimed at 155 taxpayers avoiding taxes through multiple deductions. that rule was never indexed for inflation. what happened over the years, more people were sucked into it. by 1999 it was a million people. by 2010, it was 31 million people. the fear this wealth tax being proposed would do exactly the same thing. that ultimately middle class people will start getting dragged into this. stuart: that's it. ashley: they will end up because they will never, they will never get enough money. that is the bottom line. government never gets enough money and they will expand. stuart: what we've got today is a jobs repor

pulte also hit a new high. not so much a new rally in the energy sector, we continue to see many stocks hit new lows, marathon oil, a lot of these exploration and production companies hitting new lows and there's the closing bell dow jones industrial is down 491 points s&p 500 down 52 points >> if you're just joining us, welcome to "the closing bell" i'm wilfred frost. >> and i'm morgan brennan. the dow finishing down 491 points, 1.8% lower today believe it or not, that's actually off the lows of the session. s&p also finishing down 1.7%, down 52 points nasdaq as well much lower, 1.8% and really across the board, a lot of selling with every sector in the s&p in the red. >> we were down 500 points for moments in that last ten minutes of trade but just closed above the level. still a lot of selling as morgan pointed out. we have breaking news on trade kayla tausche has the details. >> after getting a green light, the u.s. government is set to release a new list of tariffs on european union products as soon as ton

pulte, up about 50% on the year. jetblue had a nice surprise. lower fuel costs helped them power forward here today that stock is up 15, 16% about in line with the s&p 500 for the year lockheed martin had a very large beat more than 10% or so. an unusually large beat for a company this size. they raised their guidance, but it's trading flat here the fourth quarter implied guidance was a little bit below analyst expectation, even though they raised guidance, it has because the third quarter beat was really strong. show you the s&p 500 because we were heading towards historic record territory, only 12 or 13 points away from an historic close here. but as you saw, we sold off late in the day i think this is on brexit announcement that we have failed to get an agreement to shorten the time frame and possibly pause that brexit bill right now. guys, back to you. >> and first, you've got the leaders. energy, health care, and industrials today. what's really pushing this towards a rise reigning in the rally somewhat, but -- >> in general, there's been i

we're the united states of america, and we have to pult up a firewall from outside interference no matterlat out said you think this is wrong but not impeachable. what then is impeachable? what's the bar for you? >> well, i don't -- i mean, there's no actual definitive thing. it's high crimes and misdemeanors. it's ultimately a political question. so that's where the process of figuring it out. if democrats decide this is impeachable, it's impeachable because it's their decision to make. for me, as i have to look at this decision, talking to the ukrainians and saying, give us information on biden in and of itself is not impeachable. what else comes out, who knows? but it's a decision everybody has to make. >> i want to ask you about syria. this has been a big concern of yours for some time. and the president yesterday announced the withdrawal of troops from the northern syria border which would allow turkey to move in. you're very concerned about the message that this sends now and in the future to u.s. allies. why? >> so it's two things. think of every time we've been in battle and left

if you are a desperate son, if you're vladimir pult continue, we'll get it out of here.ey want contract sanctity. what they need is stability and assurance and they don't have to do too much more for one-stop shopping. it's not that oil and gas companies seek to install dictators, if there is one there, that's going to be quite convenient for them in most cases. >> it's simplifying. >> it's simplifying in terms of who do you blame, what are they doing up for you? so it's not a could innings dense that you end up with sort of coercion of democracy where oil and gas companies have sway. i think we can see that at home but in russia i think it contributed to them having a real weak spot in terms of what they can do to stay out of other countries. he ended up using oil and gas in corruption. especially in the ukraine. he also knows that unless he gets some sanctions lifted, unless he can get exxon, shell, bp, all these western countries in to help him drill, russia's one economic asset is not something he can get out of the ground. >> yes. he's the theater. >> when i was rea

pulte up this is a winning trade direct correlation to interest rates.f interest rates tick up some way around the fed you have to watch with the segment that's already been so beneficial to a lot of investors >> nerms of consumer, i think there are probably just as many data points on the earnings side right now. i know it's very, very early that could indicate a strong consumer as there are for weak consumer. >> yeah, i mean, look, we have heard strong consumer from a number of companies, especially people like nike and discretionary. discretionary is not dead. but look let's check the payroll tomorrow if wage gains fall below 3.2, 3.3% you wonder how sustainable it is at some point companies can't continue to hire look at industrial sectors the auto companies tell what you could happen to jobs seeing it? steel. the steel industry of a ajd. >> the dow closed nearly 150 points away from wiping all second and third quarter gains today. and the next guest is sharing wall street's recession concerns mike gappen is barclay's head of u.s. economic reev welco

already qualified for the last 8 as they prepare for their match which will decide who finishes top of pulte finishing 2nd could provide an easier path to the final avoiding australia and new zealand but the england players say they are not considering that idea. focus purely on us getting ourselves better and focusing as much as we can and being as prepared as we can be for all those whatever happens off the back is great and it's great that we've managed to qualify but that's all the 2nd about by sentiments is a massive thing in a tournament like this so we want to make sure we put in another good performance. go for kevin though has won his 4th p.g.a. 2 a title clinching victory in front of his home crowd he was forced into a sudden death playoff with patrick can't play at the shrine is open on sunday. missed a crucial part on the 2nd extra hole opening the door for no who had set a parting record on the tour this week he dropped it in the hole to clinch victory i. showjumping team have clinched the final place at next year's olympics in tokyo there was a nail biting finish to the nations

on the table pulte or wages temporary employment this is the reality of young people unable to even have a family to move out of their parents' homes this is the even have a family to move out of their parents homes this is the reality of capitalism of exploitation and young people are getting a very clear lesson the reality of capitalism of exploitation and young people are getting a very clear lesson in that and that really i think is what is behind the growing interest in support for her socialism we're going to take a short break in that and that really i think is what is behind the growing interest in support for her socialism we're going to take a short break the woman at the back when we will have come back we'll have more news of morning. after huge for going as for that heat to join us for that. is your media a reflection of reality. media a reflection of reality. in a world transformed. what will make you feel safe transformed. what will make you feel safe. isolation community. isolate. full community. are you going the right way or are you being led to some. good thing the rig

which is the pro union voice looking at the figures from the facts like government's own statistics pulte for a sense of catalans want to see space however just over 48 percent want to remain a part of the country this is a pro union demonstration this here where the conservative and centrist parties have pulled for people to mobilize to make their voice is no reason because they feel that they are better as part of spain all of that as a separate entity let's look at the last you know you know i'm catalan i was born here my parents are catalan and i don't want catalonia to separate from spain because i come to the myself to be confident and spanish and the regional government is only going to going one section of caulk on society. give up us out of the way what's it going to be like to like the british with their excess of bottom are we going to separate the computer or ridicule it really isn't worth it we need to resign to do it together. and attention say haven't been this high since the illegal referendum in october 27th see both sides now are not backing down from this heated battle

month but are now falling again as investors flee the stock market for the relative safety of bonds pultees is down on the day but hit new hypotheticals all summer, likely on the lower rates. >> one thing that has been said one of the things keeping them bullish is that the housing data has started to turn higher and perform better should we expect it to continue through the autumn is that all intact or do you think that the macro weakness filters through into people deciding maybe now is not the time that i want to be making a big ticket purchase like this? >> no, kelly i think demand is certainly there. we were at an open house in atlanta over the weekend, talked to people about the fears in the economy, potential recession they said, no, look, mortgage rates are low. you haveo jump in now. one of the people actually said, no fear, you got to get in because it is a good time to buy. the problem, of course, continues to be a lack of supply and high prices, but if they can get in on the affordable price point and at the close to record low mortgage rates, then they're going to get in. the

there's still another three hours worth of pulte ongoing on, and a candidate wants those voters took a nap but the voters are like, from what works you're not going to win my state. my vote doesn't count. it doesn't matter. i'm going to dinner, , right? all of a sudden it's a different ballgame. now you've got a turnout machine room five to 8 p.m. in california, if you're a candidate running because all of a sudden now you've got the early return. you know it's coming. we get our returns at noon, we get our returns at five. we have a sense of what's going on on the east coast. the west coast is a second thought, if considered at all in most cases. i've talked to enough california legislator and candidates to know, take if they are republican, whether day is like on election day and what their turn off models are like the they can to stop after 5:00. .. by tapping into every precinct in the country. >> that taps into general election. i need that voter that goes to dinner who might have voted for me, but now is going to-- >> following up on the question to jessie. donald trump is the

housing is doing excellent we hired the residential doing well, equity residential, home depot new high pulte new high sher win-williams new high fastenal, core industrial, great guidance, goodnumbers. good for those concerned that industrial would be low. we're starting on a good foot for the earnings base case there is a truce, no more tariffs if they eliminate tariffs in existence, that could lead to a rally going into the close >> up 466 points on the dow with 54 minutes left. chip stocks also getting a boost. let's get to josh lipton >> if chip stocks move on trade headlines and for good reason, china is a good end market for these companies. they get roughly 40 to 60% of their revenues in china. now on track for its best year in a decade. the trump administration also reportedly planning to allow the sale of some supplies to huawei, that could be a big deal too analysts estimate that huawei spent $10 billion alone on semiconductor components mitch steve says if a trade deal gets done, the semisector could surge 10%. >>> we have about 53 minutes left to go in today's trading session. sto