Home Builders Industry - Evercore has downgraded the home builders sector, indicating that margins must bottom before stocks can rerate, which is not expected to happen in the next several months [1] - D.R. Horton (DHI) shares fell by 5%, reflecting a broader negative sentiment in the home builders group [1] Milrose Properties - Milrose Properties was spun off from Lennar (LAR) in February and operates as a land bank, separating high-risk, high-reward growth from asset-heavy, slow-growth cash flow operations [3][4] - The company holds thousands of acres of land across 10 states and offers a 9% dividend yield, with plans to distribute all earnings and funds from operations as dividends [4][5] - Milrose has a unique external management structure by Kennedy Lewis, which may impose a valuation cap but allows for consistent cash flow through land options for builders like Lennar [6][5] Kimberly Clark - Kimberly Clark, known for brands like Kleenex and Huggies, is trading at a 52-week low with a 4.2% dividend yield and a price-to-earnings ratio of 16.5 [8][10] - The company has divested its international family care and professional business, which analysts believe has not been fully accounted for in earnings projections [9] - JP Morgan has set a price target of $144 for Kimberly Clark, suggesting potential for earnings growth of 3-6% in the future, with possible upward revisions from analysts [10][11]

Market Performance and Bank Stocks - The expansion of the price-to-earnings (P/E) multiple is driving bank stock prices higher, indicating that investors are willing to pay more for bank earnings [1][2] - Both earnings and the P/E multiple are increasing for banks, contributing to upward stock price momentum [2] - The Federal Reserve's decisions still significantly impact bank stocks, despite current market perceptions suggesting otherwise [2][3] Jim Cramer's Stock Recommendations - Bloom Energy Corporation (NYSE:BE) has seen a substantial increase of approximately 230% year-to-date, rising from $25 to $72, attributed to its technology and contracts in the data center sector [8] - New Gold Inc. (NYSE:NGD) is viewed positively in the context of rising gold prices, with Cramer favoring Agnico Eagle as a stronger investment option [9]

Market Performance & Outlook - The market has experienced a significant rally of approximately 30% since the April lows [1][2] - The industry anticipates market consolidation in the coming month, influenced by seasonality and concerns regarding the Federal Reserve and the potential impact of AI on the labor force [5][6] - The industry expects to end the year higher, despite anticipating a period of consolidation [18] - The industry views that it's reasonable to expect the market to be up a couple of percentage points by the end of this year from current levels [19] Earnings & Growth - The industry expects high single-digit earnings growth for the full year 2025 and believes it's reasonable to expect similar numbers in 2026, even with a potential economic slowdown [7] - The industry's stock market return depends on multiple expansion, which is influenced by the Federal Reserve's actions [9] Interest Rates & Federal Reserve Policy - The industry anticipates a rate cut in September, with December being more likely than October [8] - The industry believes that the Federal Reserve is likely to pause and evaluate data, leading to macro volatility over the next 6 months [9] - The industry believes that expecting a rate cut at every meeting until mid-2026 may be unrealistic [9] Tariffs & Market Sentiment - The market is seeking certainty regarding tariffs, whether the original tariffs announced in April or a future version, to incorporate them into models [13] - The industry believes that the panic surrounding tariffs has subsided, and analysts are revising estimates upward, fading the worst-case scenarios [14]