Im melissa lee. On the desk tonight, tim seymour, steve grasso, guy adami, and lori calvasina. Shares of dollar tree plunging more than 14 after posting misses on the top and bottom lines this morning. Shares, which had been on a steady climb since october, seeing their biggest drop in nearly two years, erasing all the gains for 2023. Meantime, Williams Sonoma stock cooking up an alltime high today. The highend home goods retailer beating earnings estimates, upping its stock buyback plans by a billion dollars and hiking under the circumstances dividend by 26 . In the last six months, Williams Sonoma posted virtually the same gains as redhot nvidia. So, does todays action emphasize just howdivergent the high end and low end consumers are . This is a theme certainly that weve been hitting on for months and months, but this really seems to underscore that, guy. One thing for us to say, its another thing to see two stocks on the same day perform the way they did. Tim has discussed wsm for quite some time now, and hes been right. This move is a bit parabolic. The dollar tree is the one im focused on, im concerned about. It was over a year or so ago, back when dollar gen said, people are trading down from our stores to, like, food banks, right . Food kitchens. And that was disturbing in a word. So, when people used to go down to the dollar tree to save money, now theyre trading down from a place like that. That flies in the face of what were seeing on the other end of the spectrum, the high end. So, the wealth gap continues. I think unemployment is going to be a problem. I think inflation is clearly a problem, man any festing itself in some of these numbers. And thats one of the reasons im still not particularly optimistic about the Broader Market. In the conference call, they spoke about trading down from the higher income consumers, they said 3. 4 million new customers were added in 2023 and most of them were higher income households, greater than 125,000. So, were seeing that same dynamic that walmart had seen in terms of the high end tradedown. This is a theme weve been reading about for the last couple quarters, and its really just not budging. The thing weve been talking about a bit, our Economics Team has been talking about how the consumer generally is less sensitive to shortterm rates, well, thats not true for the lower end consumer. Its not surprising to me that were sitting here at elevated levels, you are seeing more pain there. Its interesting. So, right, Williams Sonoma, whether its the dutch oven thats been selling off the hook or reidel stemware. Which you can get there, and we have the inside track on that. If you listen to the dollar tree number, it was all about the guide, it was all about a number of factors that i think actually dont have me that concerned. They are talking about weatheweather, an early easter, some of the seasonals, some of the the elements, i think, of a cautious guide that the market just beat up and said their consumers running out. The profitability here is a big issue. Youve seen Companies Come through with margin enhancement and its been, if anything, about Profit Margins that have increased across the board, especially in retail, and youre not getting that here. I think some of the macro is to be concerned about, but i think this is kind of an overreaction for a stock climbing out of a hole. I agree with that. If you look at it, wasnt this more about family dollar, that acquisition, going back and optimizing how did they phrase it, portfolio optimization. Closing stores. Exactly. Thats a fancy way of saying it. Dollar gen, they dont have that same issue that dollar tree did. And Williams Sonoma looks like a turnaround story that has started to turn around to me. So, i dont know if were making it bigger than it is. I think we might be guilty of that a little bit. I would like to see i agree with tim, overdone, look at the spike down is it a buy . You have to theres a threeday rule, definitively threeday rule, let it breathe. But maybe go the other way and go dollar gen. Huh. Were going to hear from dollar gen tomorrow morning, by the way. Well be able to compare and contrast. Would you rather. No, no. Im sorry. So sensitive with the would you rathers. I thought i dont like when other people insert the would you rather he got sensitive. Distance between my nose there they sound like they are maybe we overreacted to these results, guy, and you are concerned maybe were having two different conversations. Were having multiple conversations. Maybe theres an overreaction in the stock, maybe. I dont think theres an overreaction in terms of the commentary and what it says about where we are as an economy, where one side of the equation is doing extraordinarily well and you see it in these high end retailers, not just Williams Sonoma, the others weve talked about. And people are clearly hurting. And i think at some point and if you think about this, i believe that people are fi fighting combatting inflation with credit. That doesnt end well. And its in the numbers. Credit card debt in this country is north of 1. 15 trillion. An average rate around 24 . Thats not going to end well, either. So, when you start hearing things like this and drawing these comparisons, i dont think its particularly bullish. Im not discounting the plight that everyones going through right now, but if you look at a walmart, that would be considered not high end, right . Walmarts been pretty successful. So, i you this its more a dollar tree story. Execution issue. Exactly. So, i would just throw one more thing into the mix on the Broader Market, which is, if we are seeing clear and present evidence that lowerend consumers are struggling, and maybe thats stepped up, that is something that keeps the fed in play, which i think is good for the market. People are said, oh, my gosh, the economy is so strong, the fed cant possibly cut well, maybe just more evidence that things are not so rosy, if you dig down to all the layers, something that can keep them moving. To you, as a strategist who has a broader view, do you look at this data point and think, this is a data point that will keep the fed in play . I think it is. And what ive sensed is, talking to investors theres this march view, right, and that got pushed back to june, but our house was already in june, so, i got a lot of pushback from people. Well, theyre not going to cut at all. I said, well, they are going to cut, because theyre prying to prevent a recession, and they werent necessarily looking for all this enormous, you know, damage to the economy, but theres a contingent of people who thinks you do need to see some damage. So, i think that data point helps convince a lot of participants in the market that the fed will move. I have no problem with, there being two consumers out there. And i think you can invest around it. I think the Williams Sonoma story, its not terribly cheap. I bought some Restoration Hardware. This is a name that i think they were running into themselves. But what they both would have said, we did hear from Williams Sonoma, this has been one of the most difficult housing markets in decades, and thats a pretty extraordinary statement, its part of the reason why i think these numbers got the reaction they did, but betting alongside of the Restoration Hardware consumer right now, i think you do. I think the economys at least being to the upside. Anybody thats shopping at Restoration Hardware knows the stock market that are at alltime highs. They are still locked in at 2. 5 in their house. There is that skew in the consumer that you can continue to play, and then back to a walmart. There is crossover. And walmart, to me, is growing their margin. Right. And in terms of the housing downcycle, they actually said, Williams Sonoma, on the conference call, were closing to the end of the downcycle, and showing some signs of that turnaround. 100 . Lower end. Compared to compared to. Steve brought up walmart. Correctly. But walmart tells us, i think now north of 60 of their client base has income of 100,000 or more, so again, that speaks to the middle you know, the middle end of the country getting squeezed, as well, where theyre having to move down to you know, the whole thing sort of i understand what lori is saying. Maybe this is a great data point, if you want the fed to lower rates. Of course, the problem is, inflation dragon hasnt been tamed yet. I think the commodities, which well talk about later, i think they are going to continue on their horse higher. Shares of robinhood getting a boost in the afterhours session after releasing data on customers and assets. Kate rooney has details. Yeah, the Brokerage Firm seeing a significant jump in assets and Trading Volume, as Market Conditions improveoufimp. As assets up 16 from january. Net deposits, 3. 6 billion in february. That translates to a 42 annualized growth rate from january. They say Trading Volumes in february were higher across all Asset Classes relative to january, if you look at equity Trading Volumes, those are up 36 , thats up 41 from a year ago. Options Trading Volume grew about 12 , and 33 from a year ago. And then crypto volumes, as well, grew, up 10 , that was, you know, about an 80 jump from a year ago, at least yes, from the prior year. Options volumes up 12 . Margin balances up 6 . And that looks like all we got here, but robinhood does rely heavily on Trading Volume, more activity, absolutely tends to bode well for the bottom line. What youre seeing reflected in the stock here afterhours, melissa, up more than 8 . Back over to you. All right. Kate, thanks. Coinbase not getting too much of a boost off the back of the robinhood, obviously because they have a more focused business than robinhood, which is diversified. Whats your i mean, these robinhood news points shouldnt surprise anybody. If you stripped out the price of bitcoin and others, if you kept bitcoin flat, i bet those numbers are flat. Who are the people that are trading on robinhood . Good for guy and dan, theyve been talking about this recovery, it can certainly continue. In terms of coinbase, its a combination of, what do we see every single day in terms of the backlog that are going into the bit count etfs . The size of the institutional world thats going in . It only augers well for the broadening of the market, which coinbase has the pole position in terms of the onramp into the real digital. When we it was a final trade of mine, i based it on a mizuho analyst that was on the desk, what was the best way to play bitcoin, he said robinhood. Its been a great trade from there. Im long bit, im long ethereum greyscare trust. But if you look at robinhood, theyre changing the narration. Theyre bringing a lot of money into retirement accounts, where it was seen as, they were a different type of investment firm. Now theyre pandemic, they were, yeah, for sure. And now theyre sort of a mainstream, theyre trying to shoot for that mainstream ira money and investment money. To be fair, he got it wrong on coinbase. He was very negative very wrong. Yeah, stock trading 135 at the time, coinbase. You get some right and you get some wrong. Analysts are offsides on this one, im pretty convinced. After an announcement like that, people are going to have to start to raise their price targets, which sometimes matters, sometimes doesnt. Its had a great run. I think it continues. Coming up, a huge drop in u. S. Steel, as the companys planned acquisition by nippon hits a snag. Plus, live with the executive chairman of len near. The home builder dropping after earnings. Well dive into the report, get a closer read for what is next for this company right after this. This is fast money with melissa lee right here on cnbc. narrator frustrated by your weight and health . Join over five Million People who found golo, the natural weightloss solution. Get your free golo for life plan and learn the facts about willpower, metabolism, and lasting weightloss without starvation dieting. Get the golo for life plan delivered right to your door. No credit card is required. Plus, get free instant access to mygolo. Com for support with no monthly fees. Never pay for an online diet site again. Head to golo. Com. Thats golo. Com. My name is oluseyi and some of my favorite moments throughout my life are watching sports with my dad. Now, i work at comcast as part of the team that created our ai highlights technology, which uses ai to detect the major plays in a sports game. Giving millions of fans, like my dad and me, new ways of catching up on their favorite sport. Welcome back to fast money. Weve got an earnings alert on lennar. Shares heading lower in the afterhours. The Home Construction company beating on earnings. Diana olick is here with an interview with coceo stuart miller. Di diana . Melissa, thank you. Stuart, thank you for joining us. You had a strong quarter, with a 28 increase in new orders and a 23 increase in deliveries year over year. But that came at a price. How much did higher Mortgage Rates hurt you in terms of having to rely on pricing and inessentialives . Well, if you really look at our numbers, diana, you see that our margins are actually up year over year. Margins kind of act in a seasonal fashion, and so, if you look at our Fourth Quarter last year versus First Quarter this year, it has about the same relationship that Fourth Quarter had to the First Quarter the year before, and years before that. So, it really didnt come at a price, in actual fact, what weve seen is that incentives have started to moderate just a little bit. Now, that, of course, varies, as Interest Rates trail up or down, but our program has been solid, from sales to deliveries, and our margin is actually stronger than our guide last quarter to this quarter. We thought wed come in somewhere around 21. 2. We actually ended up coming in at 21. 8. And thats a strong practice si for the fact that the new normal is kind of stabilizing a little bit. Demand trends remain strong. And Interest Rates definitely have an impact on affordability. Now, the average price of a home, though, that sold in q1 dropped from 421,000 down to 421,000 from 448,000 last year. Was that an actual price drop or are you selling smaller, less expensive homes with fewer amenities . Yeah, its a combination between the two. Some of it is going to be mixed, but some of it is certainly that prices have come down. They have moderated. I guess from an inflation standpoint, thats probably positive news. But overall, we see a fairly robust environment from a standpoint that and in is strong, and we all know that supply is short across the country. But you said in the release, we remain focused on consistent production pace driving sales pace. Other builders are pulling back and were seeing Single Family housing stats in january came down monthtomonth. We talked about this a couple weeks ago why are you building so much when others are pulling back . Look, weve had a contraview. And that view is that there is a housing shortage in the country. The country needs more dwellings. Especially for work force housing. We think that it is important for the Home Builders to be building through and compromising a little bit on margin, in favor of providing affordable, attainable housing across the country. So, we thats the direction that weve taken, and weve leaned into our ability, our strong Balance Sheet and our strong ability to provide housing when its needed. You stay land light. Why . Why do we stay land light . We stay land light because from a Balance Sheet standpoint, and if you look at our Balance Sheet, were running at a debt to total capital ratio of below 10 right now. That is an effective way to generate returns and to generate shareholder returns while at the same time providing the housing that the country needs. And if you look at our cash flow, if we continue to maintain pace and maintain production, were able to to reduce the cost of production and therefore actually produce more affordable, more attainable housing for the country. And thats good for the work force. Okay, and i think melissa has a question for you. Stuart, at what point do Mortgage Rates have to drop in order for you to stop incentives altogether . Hard to tell. I think there are a lot of different factors that are that are going to feed into that. Theres always been a normalized level of incentivizing in the new home market, but i would say, a couple hundred a couple hundred basis points is probably where were going to have to develop to get to a new normal, and well start to see at that point the the existing home markets start to come back into play. And stuart, weve seen a lot of fluctuations recently in Mortgage Rates that have pushed buyers in, pulled them out. Do you see that 7 is now the new normal . Because theres a lot of talk maybe were not going to see it come below 7 on the 30year fixed. You can buy it down to 5 , but what do you think is that buyers level . Well, the reason that we have been buying down to five, though its been less of a buydown than it had been when sticker shock prevailed, it seems that that the buydown is a pretty good indicator as to where the consumer really starts to come in at normalized Interest Rates, and so, that might presbe at 5 5. 5 , but it doesnt feel to us like were going to see Mortgage Rates fall in the near future, and so, we continue our production levels, even as Interest Rates remain hi