Live in the NASDAQ market, save in the heart of New York City's Times Square. This is fast money. Here's what's on tap tonight. A builder bummer. The housing sector has been coming under steep pressure for the past month and is facing its worst week of the year. Is there anything that can turn this group around now? We'll debate that. And the de-dollarization drama, global central banks reducing their

holdings of greenback-denominated debt. What signal does that send and what could it mean for the

markets? Plus, Delta shares take off after earnings, another round of deal-making in the healthcare

space, and Lulu Lemon goes under, goes, loses ground, excuse me, among a cohort in the latest

hyper-Sandler survey. Can anything say the struggling-up leisure brand?

I'm Melissa Lee. Come to you, Lawson, Studio, B. at the NASDAQ on the desk tonight, Tim Seymour, Dan Nathan, Guy Dami, and Mike Wilson, CIO and chief U.S. Equity Strategist at Morgan Stanley. Welcome to you, Mike. Thank you. And we start off at the latest headache for the housing sector, the XHB Home Builder

ETF dropping another 2% today, hitting its lowest level in over two

months, the ITB construction ETF on pace for its worst week of the year, and some of the

biggest names in the space down 10% or more since Monday.

And while mortgage rates are down from their highs of the year, they remain stubbornly stuck above 6%. So is there anything other than a major move lower in rates that could get builders climbing again? Guy, what do you say? I think it's a washout in the space. And you're starting to see it now. We've talked about this. All these names, D.H.I. Pulte Holmes, Toll Brothers, they all topped out either October, November of last year. They all sold off in April like everything else did. But the bounces they all enjoyed were nowhere close to the prior all-time highs. Now they're starting to roll. And there's a couple reasons, I think. Trump administration seemingly has a bullseye on their back. That's not helpful. But I think it's an employment thing as well. It's also an inventory thing. I mean, they're in, listen, real estate is regional. I get it. But if you look across the country, you're starting to see inventory builds in some really interesting places. And I think that's going to put pressure on pricing, which subsequently puts pressure on these stocks. Remember Diana Ollick was at a housing conference, maybe three weeks ago or so.

One thing that really stuck out in her reporting was that builders are buying down an average 100 basis points in mortgage rate.

So by that math at that time, you're getting down sub five and a half percent.

So if we have to wait for rates to clear that mark, that's a long ways from here.

Well, and it's, it's large margin destructive. And it's nice having Mike here because I know he's got some theories about corporate margins in general. And the big picture, what may be happening in the housing market, especially because of the stuff the guy is referring to from the White House, if they're talking about supply side and they're throwing margins out the window, then you have a dynamic here of buying out mortgages. I would also just add that haven't we already

seen the housing market get this rally on lower rates? I mean, that to me is what it was on the second spike of this double top that I think you're selling and continue to sell here. So I don't think you need to chase it. The one thing that's kind of interesting, we had our conversation about data center last week, and it's kind of cool that in the XHB, you have some of these data center plays that are the HVAC plays that have traditional been in residential housing, so a train, a carrier, some of those names that are actually some of that data center infrastructure build out, and they're kind of interesting, so take a look at those, but I'm not sure you want the housing part yeah the cooling names yeah they have exposure to the data center are very interesting is it the consumer here that we're I mean what what's happening no this is a this is a structural problem in the housing industry and this is by the way maybe the first sign that we're gonna see some tariff implications on earnings right so the tariff I, the higher cost is what's killing the home builders. Don't forget the home builders took a lot of share from the existing home market because there's no supply. What was that? You said it took a lot of share and it sounded like, you would never do that on cable TV. But at the end of the day, I mean, they've been discounting and now new home

prices are actually cheaper than existing homes. That's the first time we've seen that. So there's

a structural profitability problem in this industry because of costs. And so lower rates is not

going to help their profitability. I like the housing space, but the home improvement sector on

activity picking up if rates come down.

Yeah, labor is probably somewhat of issue there, too, when you think about that.

So you have the double whammy of just increased input costs and then labor.

You know, it's worth noting 30-year fix, as you said, Mel, is at one-year low.

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