Stock futures flat after first trading day in August
Flat Open Equity Futures Contracts
Stock futures opened flat in overnight trading on Monday.
Futures contracts linked to the Dow Jones Industrial Average edged down 0.06%, or 21 points. S&P 500 and Nasdaq 100 futures fell 0.06% and 0.01% respectively.
— Samantha Subin
The upside from here is limited over the next few months, says Truist’s Lerner
Investors overinvested in equities should consider using current market conditions to trim their positions, as the upside in equities is limited going forward, says Keith Lerner, co-chief investment officer at Truist.
According to Lerner, market upside over the next few months is likely capped between 3% and 5%, but the downside could exceed that amount.
“The market has been very resilient, no doubt, and maybe it will be for a little while, but we don’t see the risk-reward ratio as compelling here,” he said.
This is by no means an indication of the top of the market and shares could rise, but it is an opportunity to reallocate exposure after the market’s strong rally last month, Lerner added.
Pinterest shares rise 21% as Elliott Management reveals position as biggest investor
Pinterest shares jumped more than 21% after the company posted higher-than-expected user numbers and Elliott Management revealed it was the image-sharing company’s largest shareholder.
Activist investor Elliott said in a statement that he was “convinced of the opportunity to create value” at Pinterest, calling the social media company a “highly strategic company with significant growth potential.”
“As the market-leading platform at the intersection of social media, search and commerce, Pinterest is uniquely positioned in the advertising and shopping ecosystems, and CEO Bill Ready is the right leader for oversee Pinterest’s next phase of growth,” Elliott wrote.
Despite the stock move, Pinterest missed estimates for the second quarter on both the top and bottom lines, monthly active users for the period exceeded estimates by 2 million.
— Samantha Subin