Futures tied to the Dow Jones industrial average fell 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 in the coming months, says Truist’s Lerner
Investors who are overweight stocks should consider using current market conditions to trim their positions, as the upside for stocks is limited going forward, says Keith Lerner, co-chief investment officer at Truist. According to Lerner, the upside for the market in the coming months is likely to be limited to the 3% to 5% range, but the downside could exceed that amount. “The market has been very resilient, no doubt, and will probably stay that way for a while, but we don’t see the risk-reward as compelling here,” he said. This is by no means an indication of a market top, and stocks could be squeezed higher, but it’s an opportunity to reallocate exposure after the market’s strong rally last month, Lerner added. -Samantha Subin
Pinterest stock jumps 21% as Elliott Management reveals position as largest investor
Pinterest shares surged more than 21% after the company posted stronger-than-expected user numbers and Elliott Management revealed it is the largest shareholder in the image-sharing company. Activist investor Elliott said in a statement that it is “convinced in the value creation opportunity” in Pinterest, calling the social networking company a “highly strategic business with significant growth potential.” “As the market-leading platform at the intersection of social, search and commerce, Pinterest occupies a unique position in the advertising and shopping ecosystems, and CEO Bill Ready is the right leader to oversee Pinterest’s next phase of growth ,” Elliott wrote. Despite the stock move, Pinterest missed Q2 estimates on the top and bottom lines, while monthly active users for the period were 2 million above estimates. — Samantha Subin
