S p and 2 approximate want 5 for the dow. The next move is toews. Housing stocks sharply hitting prerecession levels. What is behind the skbruchl which push higher on the back of that. The natural government announces a Major Investigation into dance cancer charities. We start with stocks. Bob pisani is tracking the action there. He is in the nasdaq before a key interview 30 minutes. Run us through the markets. Its a good news bad news day. The Housing Starts numbers had a very Strong Influence on housingrelated stocks. Look at the Home Builders up 2 to 3 . Also the Building Products companies. Masco has a good day. Mohawk and all the Companies Involved in the building industry. Helping this is home depots terrific numbers. Not only did they beat, but raised go guidance. That is a good sign near a historic high. A stronger than expected start. Comps up 6. 1 . Bottom line this was a great stock and a great run. Im not surprised its flat today. The downside is walmart. They are costing us 20 or 30 points and trending downward all year. Not only were earnings shy, but the guidance a bit uninspiring. Up 1. 1 okay but not great. The bottom line is midand low end consumer continues to struggle and that being reflected at walmart. A new low for the year. The downside is as oil has shown signs of popping out, oil stocks have reversed their gains and moved downwards. We have big declines in the drillers like Diamond Offshore and cameron on the downside. The Oil Services Group on the downside. I will be back in a half hour with the first on cnbc interview with the man who invented the volatility index. He thinks its an improvement and it may be possible to trade that as an asset class. Pushing to new highs, they were a little lack luster. How much more can this last. What is your read on the markets now . It can get more expensive. I started going through in 1987. If you go back to 1999 and when greenspan first talked about it. You heard from the chair person and she thinks stocks are expensive. We had the psychological triggers of arrogance. I think this market may have more to go but that deant mean its cheap. Maybe oversees where they are in full effect. We have been so fed by qe and Monetary Policy for the past number of years, im not sure that we know what to expect when it goes. Thats a real issue and thats a real risk that leads to complacency. The music is playing and they keep filling the punch bowls both in europe and the same in china. Its already happening in japan. We continue to see this qe and stimulus. It could continue this melt up in prices again if the rule is to buy low and sell high. This is not low. Be careful. Steve, you are not called air deep value guy for nothing. Is it hard to find in the market now . You have to look for deep value. Like he said we are at an inflection point. That was an important level on the s p and less resistance in the future than immediate support. We have mr. Evans and janet yell ib. The traders will be out on friday. There is potential for an explosive move and it might be us. The people always talk about the fact that we are at record highs and it has been on low volume. On some cases very low volume. What do we need to see that confidence that we can have some kind of something behind this. What do we need to see that . You may not see volume. All sorts of funs and vehicles. This may be the new normal. We may be kidding ourselves. When you see a volume of 3. 5 to 4 billion in listed securities that might be a good day. We may have to readjust our thinking. Maybe this is a new normal. One of the things we are having this morning is looking to maybe beef up and accelerate and front lobe and whatever you top the call it. With our markets and what it does for commodities and stocks. We have seen the effects of this and stock prices go higher. We have seen stock prices and making a series of new highs. We expect to see the stock prices and they continue higher in their markets. It keeps us with a cheap source of money around the world ask it keeps those Interest Rates low. That will keep our Interest Rates low because we have these International Funds that are going to be chasing our very attractive, who would have thought i would say this. The 2. 25 treasury. That keeps pressure on the rates and cheap money available and that should be good for the markets. One thing it is doing is pushing the dollar up big time today. I wonder if the correction in the ongoing Dollar Strength might be over. Michael and steven, thank you very much for joining us. Lets go from stocks to housing. A very bullish read this morning. Housing stocks soaring to a 7year high. In lancaster, california with a look at whats behind this. Reporter its simple. Its a lack of supply of new and existing homes for sale. We saw such a nice jump in both single and multifamily Housing Starts. Take a look. Single family up nearly 17 month to month and multifamily 32 . Permits up just under 4 . Like to see that a little bit stronger. You have to put this into a seasonal perspective. If you smooth out the last four months, we were where we were at the end of last year at 733,000 units. Comair that to the height of the housing boom we are at about half that. Compared to the year 2000 that was around 1. 2 million Single Family. A good move but we have way more to go. One thing since you are out west, the big drought forcing Home Builders to change the way they construct homes. What are they doing . Reporter its really in things you can see and things you cant see. Definitely california Home Builders are putting water efficiency even above Energy Efficiency these days. You can see behind me they are using the astroturf and more droughtresistant methods of landscaping. Whats interesting here is that the Sprinkler System comes from underneath. You are not watering up top. You are watering from underneath. But go inside the house. Thats why they are turning to technology for Home Builders. Appliances and fixtures. This home has a dishwasher that uses the last rinse cycle of water of one wash for the first of the next. They monitor itself so that residents know when they are using too much water. Its like a fit bit for the house. As for construction process itself, there is not a lot you can do. You still need to use water for concrete and dust mitigation and to keep the workers safe. The builders say new codes in california have reduced water consumption by about 40 since the year 2000. They point again to new technology. We will show you something cool coming up at the end of this hour right around the side of the house. You dont want to miss it. Cant wait to see it. Thanks diana. Lets go out for a market flash. Dicks Sporting Goods posting more than expected sales and earnings. They were short of estimates and hitting the session highs right now. Its still down so far on the days. Dicks Sporting Goods is moving off of the worst levels and down in the day. Back over to you. The Federal Reserve bank is confirming that it was hacked. Hackers took over part of the website to redirect users to fake pages, potentially making visitors vulnerable to mal wear and phish attacks. Meanwhile, two chinese professors among a number of people charged with economic espionage by federal prosecutors. From washington with the latest on that. Its an alleged case of chinese economic espionage in the heart of Silicon Valley going after the technology that is crucial in mobile phone technology. The radio frequency filters that filter out the signals that are coming to our cell phones. The two Companies Impacted are called avago and sky works. Sky works is in massachusetts. What the doj is alleging in this indictment that a long running scam existed among chinese employees of the company as well as their confidants in china to exproep riate what they developed over the years and bring it to start a new company that competes in the same market with them. Thes professor was arrested on saturday as he flew from china to california to participate in a conference. The question is whether or not this was a premedicated scam. Did they come to the United States with the intent of stealing technology and bringing it back to china or was this a case simply a crime of opportunity in which case they allegedly saw an opportunity to profit from some of the intelligence that they were privy to as part of their duties in these companies. A complicated long running scam here. The government blowing the whistle on it. One arrest and five others charged. The others remain in china for now outside of custody. We look forward to hearing more about it. Go pro Ceo Nick Woodman is getting ready to speak giving a snapshot about the state of his business. The stock, by the way, tanking 20 this year. Was it headed lower . Plus the big battle or missing picassos. Robert frank has the latest on that. Two picassos stolen from the stepdaughter have turned up in the collection of a russian billionaire who is charging the art dealer with fraud. The mystery coming up after the break. Breaking news out of washington. In about 45 minutes, te cata the Japanese Company that manufactures air bags that are at the heart of a massive recall, they will announce a recall of 33. 8 million vehicles due to defective air bags. This is a major victory at the top of the hour. There will be a press conference in washington and the transportation secretary. Essentially this is doubling the number of vehicles recalled for defective air bags. It was at about 17 million and now increased up to 33. 8 million vehicles. Well get more details at the top of the hour. Could be a record recall. Thank you very much. We will look forward to hearing more on that. Mastercard getting an upgrade and raiseing it from overweight to sector weight. They are in a benefit in europe. Starbucks announcing a partnership with spotify. The deal will allow the Program Members access to spotify music. Sinking despite the first rise in almost three years. Vodafone predicting growth after seven straight years. The stock is down by 3. 5 . Stolen paintings and a leading art dealer and russian billionaire. A picasso heir. All the ingredients for a major feud. It sounds juicy. The plot is thickening. Two paintings allegedly stolen have turned up in the possession of a russian billionaire. The stepdaughter accused the art dealer of stealing two portraits of her mother. She thought olivier was storing the paintings for her, but they were sold. Now, the dealer olivier was detained and released by french investigators and he is cooperating with authorities. The paintings have turned up in dmitrys collection. He bought them in 2013 from a long time Business Partner of that other dealer thomas olivier. She was engaged in a public battle who sold him more than 2 billion worth of art. He accused him of fraught in january and as we reported he was arrested in monaco and now out on bail. The company said the methods are shocking and they are working with police. We dont know the names of the paintings or their value, but given that 180 million picasso these are very, very valuable. Russian and french names. We got it all. Okay. Next time. Lets go back to tyler at the conference in chicago. What have you got coming up for us . It has been a fascinating morning so far in chicago. Entrepreneurs and business investors and Venture Capital folks and later today, the group will hear from marlo thomas who is an amazing person at reinvention. Thats one of her topics. Her book is it aint over till its over. She will join us in a couple of minutes to talk about why entrepreneurs need maybe above all to be able to reinvent themselves. She cher has. Well be right back. Well be right back. With a control pad that can read your handwriting, a widescreen multimedia center, and a headup display for enhanced driver focus. All inside a redesigned cabin of unrivaled style and comfort. The 2015 cclass. At the very touchpoint of performance and innovation. Good afternoon. From the iconic conference in chicago, i am joined by a person who is iconic. One of the great stars from television and theater, not only that, but an author. She is a motivator if you read her book it aint over till its over. Fantastic. Its great to have you here. We will speak about reinvention. It occurred that one is the ability to see around the corners and another is incredible perseverance and the third is the willingness you have done in your career to reinvent yourself and say yesterday, i was that. Now im going to be this. There is another personality element called never face the facts. If you do all the facts are against anybody from taking any kind of a leap in your life. You have to say those are everybody elses facts. Now im going to create my. There is a wonderful saying that if you want to predict the future invent it. Thats what an entrepreneur has. The idea that i can do this even though the odds me im not the that is going to get to do it. Somebody will get to do it. Why not me. On thats important. Journalists dont like to let facts stand in the way. Im not going to touch that one. Details. Your book has Amazing Stories of people who had to overcome adversity. A battered wife who had to come out of fear that she would be killed and took her children and ran in the night and found a place, a safe haven. Those stories are very strong and touching. There was a simple story where a woman always wanted to be a doctor. She was working as a doctor in a doctors office. She said to the physician she was working with i always wanted to be a doctor and i regret that i never went for it. She was like 30 years old. He said you can still go for it. She said well if i went for it now, by the time i got out, you would be 40. He said you will be 40 anyway. That was such a simple precise way of looking at life. You are going to be 40 or 50 or 60 anyway. Why not do what you top the do and not have anything hold you back like the facts or the number or your age. Even if you only have 20 years left, if thats your dream, take it. Tell me about there is so much we can cover and we want to talk about st. Judes hospital. That was your fathers legacy that you championed day to day. How much of your time do you devote and what is the satisfaction that you derive from it . In terms of the time its so interwoven into my life i dont know where my life starts and st. Jude starts and stops. The satisfaction that i am doing something that saves a kids life. I meet parent who is say they picked the funeral music for their child and being given a death sentence at another hospital and we are doing the Cutting Edge Research that will save this kids life. No matter how tired i am i get up and get back on the road and want to work hard to raise the money and the awareness. We look so forward to hearing from you later in the afternoon. We have breaking news that we have to get back to cover. It has been a pleasure to meet you. I will be watching. Thank you so much. We will go back for breaking news to dominic at headquarters. Something we have been hear being for sometime. Deflate gate. Tom brady. The headline here is bob kraft said the team will not appeal the penalty for its role in the deflate gate situation. Remember they got a Million Dollar fine and the loss of two draft picks. He spoke at a press conference about why they are taking this course of action. Take a listen. I dont want to continue the rhetoric that has gone on for the last four months. I am going to accept reluctantly what he has given to us and not continue this dialogue and rhetoric. They will not appeal the million fine and the draft picks lost. The Players Association are still working through that process. The patriots will not appeal and tom bradys penalty is pending. Back over to you. Thank you for the breaking news. The market it is hit new highs. The investors find value. We have investors and six stocks coming your way. Coming your way. [ male announcer ] at northrop grumman, weve always been at the forefront of advanced electronics. Providing technology to get more detail. Detect hidden threats. See the whole picture. Process critical information and put it in the hands of our defenders. Reaching constantly evolving threats before they reach us. Thats the value of performance. The compensation for jpmorgan won support from only 61 of shareholder votes cast at the annual meeting. Thats according to a preliminary tally. The vote followed a recommendation from the firm iss not to endorse the pay package. A pakistani Law Enforcement agency raided the office of of a local it company after the New York Times accused it of making millions by selling fake college degrees. They accused them of marketing on the degrees. Missing in syria for nearly three years, she pleaded for information about his whereabouts. Austin is still alive despite disappearing in august 2012 while covering syrias civil war. The only contemporary portrait of william shakespeare. The image was discovered in the 16th century book about plants by a botanist and historian. He not only knew the author of the book but helped him write it as well. That is your cnbc news update at this hour. Not at all how i imagined him. Disappointing when the image is shattered. Gold prices are closing. Moving to the downside the fiveday rally has run out of steam in the face of the stronger dollar at 1207. As the silver and copper and platinum, lets show you how the metals are doing. Moving to the downside as well. Rick santelli at the office. You get one solid day to point him and yields popped up. Looking at the interday of 30s and remember a couple of things. The settlement at 223 and they came off. Its thin out there and they