Now neighbors are being encouraged to snitch on each other for using too much water, and theyre doing it with a new app. We want you to weigh in on this one. Would you snitch on your neighbor if you caught him or her using too much water . Go to cnbc. Com vote. Sue is here in the house. I am. Were going to begin with housing. Home ownership is at a decadelow second quarter, and its young people who are out of the market. What does is it mean for the broader recovery as well . Diana olick knows. Home ownership just keeps falling and younger americans are clearly behind the drop. Take a look. The rate now is at 64 a 19year, it reached a high of over 69 back in 2004, but add to that the fact that nearly 1 million homes still have delinquent mortgages or already in the foreclosure process. The real Home Ownership rate is even lower. We know firsttime home buyers are less than a third of todays home buying market. The median age of a firsttime buyer was 31 over a decade ago, but a new survey by zizillow finds that age could jump for 34 or even older over the next decade. That may seem like a small jump, but experts say that will keep Home Ownership overall lower, could even impact sales of home goods. Just think about it. The time horizon for owns, decoratesing, renovating a home will be shorter. Now, why are not millennials buys . Employment among 25 to 34yearolds, dhs considered the prime age group for housing demands, they failed a from 75. 8 in june and 76 at the beginning of the year, according to the bureau of labor and statistics. It has been up around 80 in better times. Thats just the beginning. Mortgages, student load debt, well talk more about that, all of it coming up on street signs. Of course, more online, realty check. Cnbc. Com. Diana, thank you very much. Tax inversion, its become sort of the buzz phrase of the summer here, a bigger issue in the u. S. , maybe even every day, happens when companies go overseas, they buy a smaller company, then redomicile in that company to avoid paying u. S. Taxes. The pharma industry, really the first and maybe the most notable to do it, but there is another industry looking at inversions. Dominic chu fresh from your vacation . You didnt spend it looking at inversions . No, but my vail occasion has something to do with the next sector. One of the most International Industries is hotels. They make revenues from all over the place, so maybe theyre a candidate for inversions. Of course the one were talking about is Intercontinental Hotel group. It owns holiday inn, holiday express, crowne plaza. Theyre based in the uk. Thats the reason why its important. If somebody were to potentially buy them, they might be able to reincorporate in the united kingdom. They had back in may they spurned a 10 billion takeover bid from an unnamed american company. Who could those companies be . Theres only a handful of publicly traded domiciled in the u. S. One begins with the letter m . One of them does. Remember, one of the biggest just went public the past over a year. Begins with h . Yes, hilton. Hilton, marriott, other big names as well. Hilton, marriott, starwood, you think of those, all company with his market caps in excess of 10 billion. Thats a huge deal. If you look at those Hotel Companies, thats a big deal, because maybe they take a look at buying you with see these Companies Buying that and saying we want to reincorporate into those shores, maybe a lower tax rate. We threw hyatt in there. Its not exactly as big as the other once, but an iconic brand. Maybe they do something and can move their headquarters to the other side. Heres the part thats interesting. The other company that is we looked at are not Hotel Companies we are spay, but associated with them, but theyre casino operators. Of course all these have big hotels attached to them. Rather, casino gaming, but think about names like las vegas, sands, wynn and mgm. Sands is a 59 billion market cap. It generates a lot of revenues from outside the u. S. This is not saying this is going to happen, but these companies have enough ammunition, if they will, to take over some of these Hotel Companies. I dont want to wrong put you here, but you mentioned one in great britain. Are there others in francis, england . What were. Accor hotels is a European Hotel operator. This maybe theyre a candidate, but again it comes down to whether or not these Companies Feel as though they want to go that tax inversion route. Its all the rage right now. Whether or not it makes hotel sense is another question. Its all about real estate dynamics. Some dont actually own the properties themselves. Marriott yes, they operate these hotels, reits own the protsds and they hire a marriott or a hyatt. Dom, thank you very much. Nice to have you back. Sue . Gentlemen, lets get the trading action. Bob pisani is on the floor of the new york stock exchange. Kind of steady as she goes today, it feels like. And quite happy after the chaos last week. Sue is right, cyclical names or technology stocks, industrial names, Consumer Discretionary stocks, theyre all stronger today. Were getting some help from europe. Portugal led this. They bailed out their bank, some relief theyre finally starting to take bondholders and shareholders are finally starting to take some responsibility over there. Germany ended down fractionally. Bottom line is things are a little more stable there, much more stable in china. Have you noticed china has been doing well . While the u. S. And europe were flagging around, flailing around. Last week china was very steady. They got theyre isolated. They dont get affected by the ukraine. In fact the emerging markets in general have been doing much better. Malaysia, mexico, thailand, all those stocks have been recovering. Lower rates. If rates go up, that could be a real problem. Commodities on the back of some of these emerging markets. Dbb, there is your Exchange Traded fund that owns a lot of aluminum and a lot of copper directly. You can own these stocks through these base metals. Three days of very heavy volume. Its hatching again today. Prices are up today, but sue and tyler, very big volume today, more than 100 daily volume just in the last few hours. Back to you. Bob, thank you very much. Theres seema mody on the screen. Lets go right up to the nasdaq. I like sams note this morning when he said Market Performance in july was much like the world cup matching, excitement being left to the end. Today a rebound in some of the tech names. Amazon is down about 2. 5 last week, up today. Same story for facebook, among others. Market participants say earnings will be a focal point. Groupon will be the stock in focus here at the nasdaq, which, by the way, is rallies ahead of the highly anticipated report tomorrow. That stock up better than 7 last time i checked. Small caps, though, seesawing between gains and losses, thor there are some big losers today. An online textbook rental went public last year, and arena pharma. Russell posted his worst fourweek loss since september 2011. Sue, heres what weve got. Shares of ver i sign, worked that Berkshire Hathaway has boosted its stake by 11 to about 10. 5 of the overall company. This particular company has a market cap of around 7 billion. It gives secured domain names. Those shares are up at session highs, but the stock is still down about 8 year to date, sue. The dow negative for the year, the s p only up about 4 assist last week selloff. Is it a good time to jump in we have hugh johnson and susan fulton joins us as well, she is president and founder of fbb capital partners. You both at this point say the market is not overvalued. Thats a bit of a change for you, hugh. Is it due to last weeks selloff . It really is. We were about 4 , sue, overvalued before we started last week. As i do the numbers, we got down to a level which i think is about a half of is and 1 undervalued. Its the first time ive seen undervaluation in a long time. Thats good news, but frankly not good enough news. I would like to see much more extreme undervaluation, or a better opportunity in the markets. The other things thats missing from the current equation is youd also like to see widespread pessimism. Theres and that means we are not quite yet at a turning point. Again do you agree with the complacency argument and the fact that even after last weeks volatility we still have an awful lot of people bullish on the market . We dont think the market is overvalued. We havent really before last year screamandshout kind of mom. We do think theres value. We are picking up stocks that have dropped more than 10 in the last week, that are sort of regular customers of ours, bank of americas, which cant count, but probably will survive. And tjx, which is a Discount Retail shop that sort of buys stuff after everyone else has tried to sell it. What would you be putting cash into right now, especially if things are more attractive this week than last . Im dragging my feet a bit, but i would certainly look at materials, energy, health care, which is a good defensive move in a portfolio, and also technology. Those are the ones giving the best relative performance. As far as individual names go, national oil, which is a really Good Energy Company is going to participate, all the kind of surge were sealing in drilling. The second thing i would look at, i would look at merck in the Health Care Area and technology area. Apple and nvidia are the two companies were buying. Susan, very quickly. How do you think the earnings season will end up . So far some people say so good, but then expectations were a little low. I think its going to be a very decent earnings season. One of the things were seeing as consumers, were beginning to go out and spend, and we havent seen that for several years. So i think that were going to the retailers particularly are going to have a good year. I think the banks may, may be getting themselves uncoiled. There will be problems with housing, because the lenders really sort of shot themselves in the foot. Right. Thank you both. Appreciate it. Good to see you, hugh and susan. The drought in california turning neighbor against neighbor. Jane wells is live in l. A. Hi, jane. Tyler, its getting nasty. Theres even an app. To out your neighbors. Caught my neighbors washing her car in the middle of the day. How do you feel about this . Would you out your neighbor for breaking water rules . Go to cnbc. Com vote. We will talk to the ceo behind the app. , when we come back. 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Plus, now you get up to a 100 prepaid card when you purchase any new Verizon Wireless smartphone or tablet from comcast. Visit comcast. Com wireless to learn more this stock is moving lower that benjamin lawski is investigating whether theyre that stock you can see down nearly 4 on the trade. Still the new York State Department of Services Superintendent looking into this company on insurance claims. Thank you, dom, very much. A ban on Drinking Water that had been in place in ohio and michigan since early saturday has finally been lifted. Toledos mayor announcing that the water is safe for consumption at officials discovered elevated levels of a suspected toxin likely from algae on lake erie. Severe thunderstorms in californias mountains causing mudslides that killed one man, leaving thousands stranded. In northern california, a very different picture, with 14 wildfires raging there, the extreme drought providing the perfect fuel for fire, of course. Ty, over to you. That California Drought is turning neighbor against neighbor, and theres an app. To help that. Jane wells is live in los angeles let me just finish one thought here, and then ill let you take it away. In a minute, would you turn in your neighbor for using too much water . Go vote, cnbc. Com vote, and let us know. Now, janie, take it away. If youre living in miami, you might think, what . But here it could be more of an issue. I downloaded this app. I keep getting alerts from people reporting others its a surprisingly popular way to use an app. , that was originally meant to help people report safety issue it is. Its at medina and this is the sort of thing popping up all over l. A. Through the app. It launched before the Boston Marathon to harness reporting into one place. The company will not score the number of users. The goal is to turn this content into actionable content, so that the water municipalities, the enforcement, you know, the regulatory agents responsible for enforcing can actually monitor this if they wish. But its also the Community Getting together and sharing information. Thats whats really powerful. Reporter should we be routing people out . I think its about Holding People accountable. I dont see it quite like that. I see it more about making sure people play by the rules. If i have to play by the rules, you should too. Now, when you sign up for the app. , you get a map where people have posted. The red drought are, the purple dots are public cameras, one of the its original intents to help you with traffic. One guy writes watched his driveway car, lawn at the same time. The hose didnt have a nozzle or judd droughtshame, which in this case wasnt spelled right. Its going through another round of funding. When i came home from interviewing the other day my husband had the hose out without a nozzle, and i did feel guilty, but i did not report my own husband. You didnt report your own husband. Thats the answer, jane would not report her own husband. The viewers said, well, 47 oop, there it is, a last flurry trickling from the hose of the voters. That didnt sound good, did it . 52 said yes. 48 says no, they would not. Wow, a must be a lot of an l angelenos watching right now. You tell your husband to see a nozzle. Reporter that doesnt sound right, either. Do you have a nozzle or are you just happy to see me . Thank you. Apologies to janes husband. The passport commodity. Which passports are worth the most, which will cost you the most, and which will when visiting other countries. Theres a big winner. It will surprise you. I guarantee you. Much more power lunch coming up in two minutes. Requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. The ustilt to be is the worst performing sector so far. Since hitting the high back on june 30th, the sector overall is down nearly 9 , now only up about 7 for the year. Leading todays downward trend, American Electric power followed by agl resources, and pinnacle west, theyre all down by at least a percent and a half or more on the days trade. Tyler, back over to you. Authorities in chinaer still trying to figure out what caused a massive explosion at gms main chinese supplier yesterday. You can see the fireball above that womans shoulder in the security camera. 69 people inside that factory were killed. For now gm is searching to find another factory to make its components. A major Russian Airliner is suspending business due to recent sanctions from the european union. Russias dobroleat has stopped service. A Spokesman Says the pressure was unprecedentened and the airline could not continue to operate. Its a subsidiary of russias biggest carrier. Sue . A big strategic victory for the Sunni Terrorist Group wreaking havoc in iraq. Taking over large parts of the country, reports say the group known as the Islamic State in iraq and syria has seized iraqs biggest dam, an oil field, and three more towns after handing the powerful Kurdish Military the first battlefield defeat. This video was shot by the terrorist group over the last several weeks, firing at cars, blowing up buildings. That dam is capable of flooding large parts of iraq. It also generates electricity for much of the country. Mcdonalds is says its hoping to bring meats back to the chinese restaurants this week. The supplier was knowingly selling meat with an expired shelf life to the restaurants. Mcdonalds says its working with other existing suppliers to bring back the beef and the chicken. Shares down over the last month its about a 7. 25 drop. Lets check the Interest Rate action. Hey, rick. Hi, sue. It isnt a big day this week is no exception, but there is a lot of action at lower yield levels. Look at a oneday chart. It looks like a decent range, but when you look at it in the context of friday, you can see how squashed we are, and were hovering just several basis points above the low yield close for the year at 244. Look at a one and twoday chart pretty much the same story. Their low close ever is a and last chart has been a lot of talk about the chinese stock market coming back on its own, doing a bit better. That is