lennar was su pouzed to report tomorrow morning but results are out tonight. let's get to diana olick who's got the details. >> they probably couldn't wait to get the good news they beat on earnings and revenue using a prudent land strategy and taking advantage of new technology already in place. as lennar's chairman said at the end of q1 they slowed starts to preserve cash and protect the balance sheet. a lot of the builders have been using the land light strategy during the pandemic but in the q2 report business rebounded significantly in may and by quarter's end our total new orders declined by only 10%. we resumed starts and this rebound has continued into the first two weeks of june. now, another interesting note which we reported quite a bit on is this flight from apartments in urban areas miller added that customers moved from rental apartments and density populated areas to purchased homes as record low interest rates and inventory levels drove a favorable rebound in the home building industry. the average sales price came in a little lower but he said

diana olick has the numbers out. >> really nice beat for lennar $517.4 million that is $1.65 a share. revenue of $5.3 billion. now chairman stewart miller said that business rebounded significantly in may new orders were down 10% year over year. but deliveries ended the year flat ended the quarter flat year over year we resumed starts and land spend to match the improving market conditions and this rebound has continued into the first two weeks of june. they're seeing strength across all markets and all regions. they're saying that they're seeing a lot of people move from rentals and densely populated areas to purchase homes taking advantage of record low mortgage rates and they're also reinstituting guidance saying that for 2020, they expect us to see between 50,500 and 51,000 new homes for all of 2020. a really nice beat for miami based lennar back to you. >> not moving much after hours i guess a lot is factored in there is a lot of optimism going n. >> absolutely. they were expected just because we heard so much in the market about the builders doing so well in may and june, that t

up about 477 we'll be right back. >>> home builder lennar with diana olick. >> shares of lennar are better than expected quarterly earnings they said buyer demand came back in may and has tipped to improve this morning joining me now is stuart miller, former ceo of lennar thanks so much for being here. >> good morning, diana. >> reporter: good morning. now that was a quick turn around were you surprised at buyers coming back so quickly in may? do you think it will hold into the fall or was it a temporary bounce from all of that pent-up spring demand? >> well, it was a very quick turn around. in fact, we saw as the economy shut down, we saw real stall from mid march through the end of april but beginning really in the middle of april it accelerated, momentum built as we got to the end of may we saw that our sales, not just our closings but our sales had really normalized. even as we've gone into june, into june we're continuing to see that strength. now as we look around the corner, there's no question that the economy is still -- it's still looking to get back on track and we're going to h

. >> today, lennar shares trading higher offering an improving outlook and continuing this month. don't miss lennar ceo coming up. >> tesla striking a deal to buy co-balt from glen core supplying the new shanghai giga factory and the proposed facility in berlin >> i think musk would say lol? that is stock news a happening outside the world of business frances rivera is in new york with that. good morning >> today president trump is expected to unveil his executive order on police reform in the wake of killings of george floyd in minneapolis and rayshard brooks in atlanta. he will ask to create a database to track officers. >>> north korea has blown up an inter-korean liaison office. showing the explosion and smoke rising from the complex. the building was opened in 2018 to improve communications between the two. >>> as the nfl moves to start the season, word several players from the dallas cowboys and texans have tested positive. and ee zekal elliott is one name who has tested positive. better now than in the regular season >> yeah, i know zeke elliott apparently not happy his dia

numbers out of lennar this morning were phenomenal. it is because people want to move out of the high density, the cities. inventory is low. interest rates are low. banks are inclined to lend. i think we'll see that lead. charles: david, bank of america merrill lynch survey came out of fund managers and 78% say this market is oversold yet their cash position dropped. here is something interesting. i want to get your read on this here is a good quote for you. the peak pessimism is over but jon optimism remains, quote, fragile, neurotic, nowhere near dangerously bullish. this is from the bank of america chief investment strategist. we saw all of this today! up 800. up 40. up 600. you talk about nor rot tick? you're always invested. how do you feel where we are with respecter to this market and the and role of the fed. >> i'm blown away about the price momentum like everyone else. it begs the question should we be at this level at this point in the cycle, not everything, not everything, charles, will come back the same. we haven't even ta

lennar's numbers were fantastic. they with make a fortune in a low interest rate environment and that's what they're doing. they're a nice split 234 in between split between covid and no covid that's a nice place to be. i do like toll i like to say there is always a bull market somewhere and i promise to try to find it for you here on "mad money." i'm jim cramer and i will see you tomorrow! >>> good evening, i'm scott wapner on day 169 of the coronavirus crisis tonight new doubts about plans for pro sports to get back in business as cases spike in 21 states >>> the comeback of sports suffering setbacks from the hardwood to the baseball diamonds onto the gridiron virus cases still spiking in several states >> we have less than two days to buy our blood. >> the virus causing problems fo

l lennar is -- there's a likelihood they will surprise to the up side. we think about the virus and the deaths, and to cramer's points fortunately the deaths are staying pretty stable, people are focused on their homes, looking at their four walls, wondering if they have enough space. the idea of being able to work remotely is driving a lot of migration. people are leaving high-cost areas, migrating to the southeast or the southwest it's been a tremendous recovery. when you think about rates, rates are down now at all-time report lows with down almost another call it 70, 80 basis points from where they were a year ago so it's driving affordability. people who had been paying rents in some cases in some markets 20%, 30% more than what they now can pay in a monthly payment if they're able to come up with the down payment and get approved when you're not spending money on vacations you're not going out to restaurants and all the things you normally would spend on, plus you're getting stimulus checks, there is a lot of people that are taking advantage of thi

that surprisingsurge in demand he admitted, caught lennar off guard. >> as the market stalled, we paused our land development and starts as well we know as we get to the fourth quarter, we're going to be a little bit short on our closings, but nonetheless, we rebooted pretty quickly as the market started showing signs of recovery in housing. >> the nahb reported big jumps in current sales position, sales in the next six months and especially buyer traffic region demand improved most in the northeast and was highest in the northwest. kelly? >> stocks are down about 1% or so on the news is that because a lot of this was already baked in >> it was, and because they reported yesterday after the bell it got a big jump in the after-hours trading and it may be some project taking the stock has been doing well in the last day or so because people were expecting this beat coming we saw more applications to purchase a home jump as well, so a lot of this may have been baked in >> at what point does this translate into rapidly rising home prices? >> well, that depends entirely on the existing home m

so a little bit of a miss still you got a little bit of a jump premarket for your home builders lennar toll brothers as i send back to you maybe see what june brings nhb may you thats sentiment 21 point jump a little bit of a surprise could be on national story with lagging indicator kind of miss on estimate, is the fact about that you've got not all of the country excuse me was reopening for the month of may we have had a slow start pun intended if you will maria for the country to kind of get back so maybe june data will be better still not a huge affect on the markets back to you. maria: well we had a really great environment in terms of housing that has been one of the stronger sectors no surprise estimates all the way up there, of up 22% or so we got a number which is much lower as you just reported cheryl up better than 4% cheryl casone thank you small business in america has been hard-hit bib the coronavirus shutdown somes experts predicting nearly half black owned businesses across the country will not recover, owners typically have fury resources to fall back on tough time get

so if you look at evaluation, let's take lennar, for example, 11 times next year's earnings, not much of a dividend you're going to get cyclical growth that may outpace the growth you're getting in terms of gdp home builder should do well regardless of how much the economy recovers there are some secular things happening there. the most common age temperature in the united states is 29 years old. we're getting into another phase of, another peak of household formation. >> we are losing josh's connection there we'll try and fix that just to round it off on the housing names, should the low rates and what it does to mortgages be outweighing the unemployment rate? >> i wouldn't say outweighing, but basically the pool of potential buyers, as it's relevant to the home builders has not shrunk that much such a supply demand aggregate number of homes we're talking about selling is not enormous. didn't have to sell a house to every third person in the country. i do think the mortgage rates matter i think it's also a favored group though i don't know how much is necessarily left in the stocks o