Netflix is set to jump for a second day in a row, and Washington's budget showdown weighs on defense stocks.
The Dow Industrials rose another 62 points yesterday to their 14th record high this year. The Dow has jumped nearly 300 points over the past four sessions. The S&P 500 rose five, also closing at a new high, and the Nasdaq added three.
Netflix (NFLX) is set to add to yesterday's big gain. The company expanded its agreement with toymaker Hasbro (HAS) for more kids' programming. Goldman Sachs (GS) also raised its target price on the stock.
JPMorgan's (JPM) quarterly net jumped 33 percent, topping expectations, but there's concern about two key measures: Revenue fell and so did income from net interest.
Bank stocks have been on a tear since the middle of last year, but a number of analysts worry that could end if earnings reveal that growth is slowing.
Defense contractor Harris Corp. (HRS) slashed its earnings outlook for the current quarter and the next one. It said key orders from the government will probably be delayed because of budget wrangling in Washington, including the sequestration. That could put pressure on other defense stocks too.
And trucking company J.B. Hunt (JBHT) failed to deliver. Its net fell short of expectations. That could put pressure on the Dow Transportation average.
J.C. Penney (JCP) is facing a potential cash crunch because its sales have fallen so sharply. So the company has reportedly retained an investment banker to help it sort through some unsolicited offers from private equity groups.
Chevron's (CVX) board of directors has voted to give itself a raise, and a pretty hefty one: Pay for the 11 directors will go up by 25 percent to 375,000 dollars a year.
And Eli Lilly (LLY) is restructuring its sales force after the expiration of some key drug patents. 30 percent of the sales force, about 1,000 jobs, will be eliminated.
–Produced by Drew Trachtenberg
16 Big Bubbles That Are Getting Ready To Burst
Market Minute: NetFlix Extends Kids' Programming Pact with Hasbro
What the experts say: "The cost of college textbooks has been rising at almost twice the rate of general CPI inflation for at least the last 30 years," according to Mark J. Perry, American Enterprise Institute. "As Glenn Reynolds reminds us, 'a process that cannot go on forever, won't,' and the college textbook bubble is certainly one of those processes."
Warning stat: First tier cities Beijing and Guangzhou saw home prices rise 3.1 percent in February, the biggest jumps in the country. Meanwhile, entire towns will go up in China with no inhabitants. These are China's notorious "ghost cities."
Warning stat: The "crypto currency" now trades at $63 -- double what it was at the beginning of March.
What the experts say: "In hindsight, the people who bid the price of Bitcoins up to $30 in 2011 may not have been so crazy after all. It just took the broader market, including me, a couple of years to catch up with them," according to Ars Technica's Timothy B. Lee.
Warning stat: Investors recently bid a record $3.16 for each dollar of the $2.011 trillion in bonds the U.S. government auctioned in 2012, Bloomberg says.
What the experts say: "Long-term interest rates are now unsustainably low, implying bubbles in the prices of bonds and other securities," warns economist Martin Feldstein. "When interest rates rise, as they surely will, the bubbles will burst, the prices of those securities will fall, and anyone holding them will be hurt."
Warning stat: American farmland prices continue to grow at a blazing hot double-digit rate. An industry group recently forecast that values could surge 15 percent to 20 percent in 2013.
What the experts say: "It doesn't have all the hallmarks of a bubble," according to Robert Shiller. "One of them is most people have never heard of it. In my view of a bubble, it's something that gets people excited. Well, some people are excited, but most people don't even know about it."
What the experts say: "The real question in my mind is, 'Are we possibly off to the races again?'" asked economist Robert Shiller. "I think in cities like Phoenix and San Francisco, we might be seeing something pretty big developing. People there are very speculative-minded."
Warning stat: Health care spending has grown 2.5 times faster than incomes over the past 30 years.
What the experts say: "The health care system in the U.S. reminds us somewhat ominously of the bubble in housing finance, a 'public/private partnership,'" says Citi's Steve Wieting. "Housing consumption still receives strong tax preferences, as does health insurance (reflecting underlying health care consumption). Most aptly, prior to quasi-nationalization, housing GSEs earned private profits from public subsidies for housing, as do U.S. health care providers."
Warning stat: Europe stabilized after ECB president Mario Draghi said, "Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough."
What the experts say: "To us the key word about the post summer 2012 Euro Area asset boom is that most of it is a bubble, and one which will burst at a time of its own choosing, even though we concede that ample liquidity can often keep bubbles afloat for a long time," warns Citi Chief Economist Willem Buiter.
Warning stat: Prices are up 47 percent year-over-year, and are sitting at an 8.5 year high of $432 per 1,000 board fee.
What the experts say: "Signs of a housing bubble in the world's most populous nation may force the Chinese government to take measures to 'draw air' out of the rising housing market and to clamp down on construction lending, which would likely put a significant dent in the demand for building materials such as Lumber and Copper," according to Mike Zarembski, OptionsXpress.
What the experts say: Jeff Gundlach notes that not only have wages not increased commensurate with tuition inflation, wages have actually been falling. "What have all these soaring tuition costs got you?" asked Gundlach rhetorically.
Warning stat: Craft beer production surged 15 percent year-over-year in 2012.
What the experts say: Boston Beer Co. founder Jim Koch says most stores have reached their limit for carrying new breweries, and that too many breweries are making similar beers without adding anything to the market.
Warning stat: Canadian home prices mirrored the U.S. housing rally. However, Canadian prices never fell. A recent Canadian Housing Affordability study says the country's home market is 10 percent overvalued.
What the experts say: "I worry that what is happening in Canada is kind of a slow-motion version of what happened in the U.S," said Robert Shiller.
What the experts say: "What we find is that Bernanke does not have nearly as great a track record on inflation as he thinks he has. Greenspan could not see that the housing market was an inflated bubble. Evidently Bernanke cannot see that the stock market is an inflated bubble."