Dow Jones futures fell late Monday, along with S&P 500 futures and Nasdaq futures, after the current stock market rally closed up Monday but near session lows. Etsy (ETSY), RealPage (RP), Medpace (MEDP) and Shake Shack (SHAK) were highly rated companies reporting earnings late. Etsy stock signaled a gap-up buying opportunity on its results. But RealPage stock and Medpace stock plunged overnight on weak guidance, while Shake Shack stock fell modestly. Separately, Tesla stock fell sharply late after the SEC asked a judge to hold Tesla (TSLA) CEO Elon Musk in contempt for violating a 2018 settlement.




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Medpace and RealPage, both IBD 50 stocks, boast best-possible 99 IBD Composite Ratings. Etsy stock has an OK Composite Rating of 83, reflecting its relatively recent profitability. Shake Shack stock has a 92 Composite Rating, despite a sluggish share price and slowing growth. Tesla stock has a woeful 37 Composite Rating.

Dow Jones Futures Today

Dow Jones futures retreated 0.3% vs. fair value. S&P 500 futures fell 0.35%. Nasdaq 100 futures were down 0.45%. Remember that overnight action in Dow futures, Etsy stock, Tesla stock and elsewhere doesn’t necessarily translate into actual trading in the next regular session.

Current Stock Market Rally

The current stock market rally started off strong Monday but closed near session lows in a stalling day. President Donald Trump tweeted Sunday that he was pushing back China tariff hikes set for March 1, citing “significant progress” in China trade talks. Wall Street wants a China trade deal. But after nine straight weeks of gains fueled in part by China trade deal hopes, the current stock market rally might be due for a pause or pullback.

Etsy Earnings Buoy Volatile Etsy Stock

Etsy earnings shot up 113% to 32 cents a share. Revenue rose 47% to $200 million, the seventh straight quarter of accelerating growth for the arts and crafts e-commerce site. Analysts expected Etsy earnings of 21 cents and revenue of $194.9 million.

Etsy stock shot up as high as 65 in late trading, then tumbled below 58 before moving back to 63.15, up 7%. A Tuesday move above the Feb. 5 high of 60.58 would create a buying opportunity. Shares rose 4.1% to 59.01 in Monday’s stock market, a record close. The relative strength line, which tracks a stock’s performance vs. the S&P 500 index, is just below record highs.

Etsy stock tried to break out past a 58.40 entry on Feb. 5, but reversed to close almost flat that day. By Feb. 7, shares fell to 50.14 intraday, invalidating the entry.

Etsy stock had failed breakouts in early August and early November. Perhaps this time is different, but investors mulling buying Etsy stock should be well aware of its recent history.

Tesla Stock Falls As SEC Says Elon Musk Violated Deal

The SEC asked a judge to hold Elon Musk in contempt for violating the agency’s settlement with Musk and Tesla. The SEC cited Elon Musk’s Feb. 19 tweet that Tesla would make 500,000 cars in 2019. He later clarified that he meant a run rate of 500,000 cars by year-end, but only 400,000 vehicles produced this year.

Tesla confirmed that the tweet was not pre-approved, as required by the settlement, as the company’s general counsel left after two months.

The late 2018 SEC-Tesla settlement revolved around Elon Musk’s infamous “funding secured” tweet regarding a possible buyout at 420 a share, when there was no such funding. The settlement forced Musk to relinquish his post as chairman, among other things.

Elon Musk called the SEC “embarrassing.”

Tesla stock fell 3.6% in late trading. Shares rose 1.4% to 298.77 on Monday but were stuck below their 50-day and 200-day lines.

Medpace Earnings Guidance Slams Medpace Stock

Medpace earnings rose 92% vs. a year earlier to 75 cents a share. Analysts expected Medpace earnings of 69 cents. But the contract researcher for small drugmakers gave weak guidance. At the midpoint, Medpace sees EPS of $2.58-$2.69 in 2019. Analysts had projected Medpace earnings of $2.95 a share. The company gave a revenue midpoint of $795 million, below consensus for $801 million.

Medpace stock tumbled 11% in late trading. Shares closed up 0.9% to 70.58 after hitting a record 71.66 intraday. Medpace stock cleared a 62.23 cup-with-handle buy point on Jan. 30. The after-hours action suggests Medpace stock could test that entry, which would mean a 15% round trip. Investors should avoid letting a double-digit gain from the breakout point turn into a loss.

RealPage Earnings Top, But Sales, Guidance Weak

RealPage earnings rose 50% to 39 cents a share, beating by a penny. But the software maker’s revenue rose 21% to $227 million, narrowly missing. RealPage earnings and revenue guidance for Q1 and 2019 was generally below consensus.

RealPage stock fell 7.75% in late trading. Shares had closed up 1.7% to 60.93. RealPage has been working on a 66.35 cup-base entry.

Shake Shack Earnings

Shake Shack earnings fell to 6 cents a share, but that beat views for 3 cents. Revenue rose 29% to $124.3 million as same-store sales climbed 2.3%, both topping. But Shake Shack sees 2019 revenue slightly below consensus, with comps flat to up 1%.

Shake Shack stock fell 4% overnight. Shares closed down 1.2% to 52.25, still trading below their 200-day line. Shake Shack stock is well off its July 20 peak of 70.12.

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