Chinese Stocks Fall as Tensions Rise Over Pelosi Visit
Stock futures open flat
Stock futures opened flat in overnight trading on Monday.
Futures linked 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.
The upside from here is limited in the coming months, says Truist’s Lerner
Investors over-allocated to stocks should consider using current market conditions to trim their positions, as stocks’ upside potential is limited going forward, says Keith Lerner, co-chief investment officer at Truist.
According to Lerner, the market’s upside potential over the next few months is probably limited to the 3%-5% range, but the downside could exceed that amount.
“The market has been very resilient, no doubt, and maybe it will stay that way for a while, but we don’t see the risk-reward relationship being that compelling here,” he said.
This is by no means an indication of the top of the market and the stock could go higher, but it is an opportunity to reallocate exposure after last month’s strong market rally, Lerner added.
Pinterest Shares Rise 21% as Elliott Management Reveals Position as Largest Investor
Pinterest shares surged more than 21% after the company posted higher-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 he has “a belief in the value creation opportunity” at Pinterest, calling the social media 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 the next phase of growth.” from Pinterest,” Elliott wrote.
Despite the stock move, Pinterest missed Q2 estimates on the top and bottom lines, with monthly active users for the period coming in at 2 million above estimates.