Stock futures were flat in overnight trading after a new month of trading kicked off for the markets.Shares of Pinterest soared more than 21% in extended trading despite disappointing results after Elliott Management revealed it's the largest investor in the social media company.The after-hours moves came as stocks slipped during the first regular trading day of August after all the major averages finished their best month since 2020. The S&P 500 shed 0.28% to end at 4,118.63 while the Nasdaq Composite inched 0.18% lower and closed at 12,368.98. The Dow Jones Industrial Average slipped 46.73 points, or 0.14%, to end at 32,798.40.Seven S&P sectors ended Monday's session in the negative, led by energy which dropped more than 2% as oil prices dipped. Consumer staples closed up 1.2% higher on the day.Despite a strong market bounce in July, to be sure, not all investors are convinced the pain is over. "I think for sure it remains a bear market bounce," Kevin Simpson of Capital Wealth Planning told CNBC's "Closing Bell: Overtime" on Monday. "... I think it was awesome the way the markets traded in July, but I think we're not through any type of capitulation. The headwinds are just too rampant.On the economic data front, investors this week are awaiting the July nonfarm payrolls report slated for release Friday for further clues into the state of the economy and the job market. More earnings data is due out Tuesday with reports from Starbucks, PayPal, Caterpillar, Advanced Micro Devices and more.The upside from here is limited over the next few months, says Truist's LernerInvestors overallocated toward stocks should consider using the current market conditions to trim back their positions as the upside for equities is limited going forward, says Keith Lerner, co-chief investment officer at Truist.According to Lerner, the upside for the market over the next few months is likely capped in the 3% to 5% range, but the downside could exceed that amount."The market's been very resilient, no doubt, and maybe it stays that way for a little bit, but we don't see the risk-reward as that compelling here," he said.This by no means is an indication of the top of the market and equities could squeeze higher, but it is an opportunity to reallocate exposure after last month's strong market rally, Lerner added.-Samantha SubinPinterest shares pop 21% as Elliott Management reveals position as largest investorPinterest shares popped more than 21% after the company posted stronger-than-expected user numbers and Elliott Management revealed it's the largest shareholder in the image-sharing company.Activist investor Elliott said in a statement that it has "conviction in the value-creation opportunity" at Pinterest, calling the social media company a "highly strategic business with significant potential for growth." "As the market-leading platform at the intersection of social media, 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 estimates for the second quarter on the top and bottom lines, Monthly active users for the period came in 2 million above estimates.— Samantha Subin
Stock futures are flat after first trading day in August.