Barclays' June A.G.E.N.T. (Analyzing, Gauging, & Exploring Neighborhood Trends) Survey showed risks that indicate homebuilders will disappoint relative to rising expectations.

Barclays consequently cut ratings on homebuilder stocks Lennar (LEN) - Get Report , PulteGroup (PHM) - Get Report and TRI Pointe Group (TPH) - Get Report to "Equal-weight" from "Overweight," while downgrading Toll Brothers (TOL) - Get Report to "Underweight" from "Equal-weight."

"Our builder target prices are unchanged and show 7% average downside. We view building product/distribution stocks as having a more attractive risk/reward," Barclays noted.

The firm contends that expectations have run up ahead of themselves, and even though demand remains robust, decelerating indicators (buyer traffic) shows limited upside.

Barclays also sees margin headwinds in the form of land, labor and material costs.

The firm did offer some assurances in the space, including that the housing backdrop remains favorable with low inventory levels against encouraging household formations. But constraints such as land and labor pressures will prolong the sector's recovery.

What's Hot On TheStreet

Watch out, Apple: Louis Vuitton Tuesday unveiled its first smartwatch coined the Tambour Horizon in a bid to cut into Apple Inc's (AAPL) - Get Report hold on the wearables market, TheStreet reports.

The watch was made in conjunction with Alphabet's (GOOGL) - Get Report Google and Qualcomm Technology (QCOM) - Get Report and starts at a lofty $2,450. It works with both Apple and Android devices, and is the first Android Wear smartwatch that functions in China.

Yes, it's Amazon Prime Day: Although many probably have Amazon (AMZN) - Get Report Prime Day fatigue right now, that doesn't mean they won't be spending aggressively on big digital deals. Amazon stands to ring up more than $2 billion in sales worldwide during the 30-hour sale known as Prime Day, Internet Retailer predicts. The gain would mark about a 21% increase from a year ago. U.S. sales alone are pegged at $1.56 billion, up 20% from last year, TheStreet reports.

Bitcoin has crashed: Traders that have rode the wave higher in Bitcoin via cryptocurrency plays such as Advanced Micro Devices (AMD) - Get Report and Nvidia (NVDA) - Get Report may want to reconsider their bullishness. Bitcoin prices entered into bear market territory Tuesday, TheStreet reports, as an embarrassing legal case kicked off in Japan and experts continue to squabble over key changes to the cryptocurrency's infrastructure.

Bye-bye regulations: President Trump late Monday nominated former Treasury official Randal Quarles as the Federal Reserve's top bank supervisor. As TheStreet's Ron Orol reports, the nomination could lead the way to a dismantling of many Obama Administration bank regulations and is one that is expected to send a positive signal for now to big and regional bank stocks. Orol points out that the appointment could boost bank stocks such as Bank of America (BAC) - Get Report , Wells Fargo (WFC) - Get Report , Citigroup (C) - Get Report and Goldman Sachs (GS) - Get Report in the near-term.

Apple, Alphabet, Wells Fargo and Citigroup are holdings in Jim Cramer's Action Alerts PLUS Charitable Trust Portfolio. Want to be alerted before Cramer buys or sells AAPL, GOOGL, WFC and C? Learn more now.

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