for pulte, it's what the look is ahead. >> i've been drooling over the home builders pes.ter this morning who was bullish as a pair trade on the builders for the past couple several weeks is saying take your money and run what do you say? >> >> yeah. i would agree with carter. the values are strong. low pes. i think it's before reason the big picture is getting less, less rosey if you go out we mentioned the rates going up about 3% that is people that are potentially using cash flow, using cash flow option as well so if you look at it in the near term, a couple things pop out. affordability is going the wrong direction for everyone out there. there is more cracks in the housing market you take a negative turn on housing starts looking at the cancellation rate is really important. the peak already happened. i think we're going the opposite direction. i think the market priced a lot of that in for good reason >> all right diana, thank you let's move along to mcdonald's now. the dow component down 6% this year as they navigate the labor issues all the franchisees unhappy last

i'm a big fan of pulte.orrow morning and the weird thing about this we're not focusing on the report itself, we're not focusing on the top line or bottom line, it is about outlet what is ahead, not what is behind. we'll focus on cancellation rates, guidance, sustainability of pricing due to lower demand caused by higher interest rates. it continues to trade bee book value, and when you buy homebuilders below book value it looks like a pretty good position. i think i like the story even better longer term, given structural underbuilt nature of housing in the u.s. liz: okay, so pulte is your choice there. right now we're looking at a market overall that is highly dependent and somewhat tentative because we've got that med meeting announcement on wednesday. the meeting begins tomorrow, the announcement what they decide to do with rates on wednesday, they're expected, fully priced in to raise by at least 3/4 of a percent. kenny kenny polcari, our trader at top, says forget it will be 1%. either way the mortgage

>> we very much like pulte >> d.r. horton came out with their earnings this morning. when i looked at them on the computer, i sent a message to my team, wow! that's horrible and that played into our book that you have to start looking at valuation i think a lot of the new investors in the market they didn't care about valuations for probably the last five years, but right now you have to start looking at valuation d.r. horton was trading at 80% of next year's book value. pulte which i think is a higher quality book value, and they're more diverse with the entry level such as d.r. horton that they're more quality in my mind and still trading at more than book value i see that in the performance as it is priced in. >> david, we appreciate your perspective and there are a couple of soarities that david favors. >> cheers. >>> coming up, a regional banking powerhouse and huntington bancshares up today they're up 10% this month. we have the ceo talking rates, growth and his view of the economy. we are live from frankfurt on what europe's largest economy is doing to end its

also, pulte is out with results. ingenuity... in motion.apts and anticipates your every need. with intelligence... that feels anything but artificial. the eqs from mercedes-benz. it's the car electric has been waiting for. >>> both signaling the slowdown, this plus record high inflation, here to discuss, one of the largest home builders ugh do you bower with tri pointe. a lot of commentary suggests the picture really turned in the last 30 to 60 days, does that sort of mirror what you're seeing >> definitely spot on. as we reported or second quarter results last week, really we saw -- it made sense interest rates went from 3 period of time to almost 6%. the headlines has really changed the sentiment of the buyer as we moved through the quarter, it elongated the cycle, but put a pause to the buyer mentally from a psychological standpoint. we definitely felt that. it's interesting, carl in the short term, they're definitely a driver, but in long term, i think your previous guest talked about this the long of-term drivers are housing and -- i t

impact of this rapidly cooling housing market over the past week we've seen results from dr horton, pulte, and all three have -- diana olick is here with a first on cnbc interview new orders were down 25% as the housing corrections now really taking hold. joining us is ceo cheryl palmer. thanks for being here. we're obviously at a correction point. lets than an hour from the fed announcement, in your view is the fed making the right move, given the impact on your business >> i think the fed mandate, diana, has been quite clear. certainly with economic housing broadband such a driver, housing is going to feel this. ed think the fed is acting swiftly. i think we all expect to see an additional 75 basis points today. i think the sooner we move through this, honestly, the better we are. >> your cancellation rate jumped nearly doubled, so it means you're sitting on a lot of supply how will you deal with that going forward in will prices come down? >> diana, i think to start with, when you look at the cancellation rate, i think looking at the year-over-year numb, increase is probably the wrong

look at lennar, pulte group and d.r. horton. ratios of these stocks are in the single digits right around four. four times next year's earnings. mortgage lenders like rocket companies, loandepot off over the past week and that's off over the past year as we know and rocket remains 50% off yearly high and you kind of keep some of these things in perspective. >> coming up on the show, edgy investments. today's three-stock lunch is taking a shot at some names with strong risk and maybe reward profiles >> plus the economic enigma and the jobs report coming in ceionger than expected to find ressn fears and we will discuss what it all means when "power lunch" returns after this break. >>> welcome back, everybody. time for our weekly etf tracker. we are following the money and we are looking at biotech this week $142 million of net inflows. like tech, the biotech stocks have been bouncing back after a rough start to the year and the news that merck is close to a $40 million deal to buy seagen and take over news always a catalyst the ga

dr hour month, he participate in, pulte group, they are in the top five of the s&p, for sale homes in june jumped 18.7% year over year. that's the second straight month active listing volume has grown in nearly three years. chief economist danielle hale says while the release will cool off competition, it'll take time for the typical home buyer to actually see the listing prices come down. so you have to be more patience painter. jeff greene just said not enough inventory are the last words of a real estate budget. realtor.com, by the way, subsidiary of news corporation, news corp. up 1%. let's look at micron, it's sending a matter of fact warning to investors saying weakening consumer demand particularly in china will hurt smartphone sales. shares falling another 3% after a very rough week. the memory chip maker also issued disappointing fiscal fourth quarter guidance, executives say they're still confident about demand for chips in the long the term. >>> pretty much the entire sector, folks, is getting pulled down. amd, intel, nvidia in the red at the moment, and the semiconductor i

. >> 6.66% job for pulte thank you very much. >> let's get to the bond market meantime, speaking of keyd talk about the reversal and the ten-year yield and the lower since may today and that's at 2.889% right now and the two-year yield and they retraced a long way and just a couple of weeks ago, the ten-year is around 3.5%. oil is closing for the day after a volatile week and let's head to pippa stephens for the latest pippa? >> oil is in the green after posting its first negative month in seven, but it did end q2 higher and the ninth positive quarter for the first time ever. driving today's action is supply outages in ecuador, libya and norway, wti is at 108, a gain of 2 1/3% and brent crude at 2% at 111.40, looking at nat gas up more than 5.5% as it tries to make back some of yesterday's 16% drop turning to prices at the pump, we have started to see a little bit of demand destruction. the product supplied which is a proxy for demand fell below $9 million per day on a four-week rolling average, that's according to the eia and that is the lowest seasonal level since 2014 with the except