Stocks: 8 weeks up and counting

NEW YORK (CNNMoney.com) -- Stocks have been on a tear, with the Dow industrials rising for eight straight weeks, the longest winning streak in six years. But with a slew of quarterly reports and a Fed meeting on tap, another up week could be tough.

"The path of least resistance seems to be up and there seems to be good buying on any dips, but I also think we're getting to the point where we've overdone it," said Donald Selkin, chief market strategist at National Securities.

He said that so far the stronger earnings and improved economic news have given stocks support. Last week, Citigroup (C, Fortune 500), American Express (AXP, Fortune 500), Apple (AAPL, Fortune 500) and others reported better-than-expected results. Reports from the government showed the housing market is recovering, with new home sales in March jumping at the fastest month-over-month pace in 47 years.

Yet headwinds abound, including Greece's debt issues, Wall Street reform and questions about whether the SEC's decision to charge Goldman Sachs with fraud was just the tip of the iceberg.

Despite these overhangs, the Dow has risen for eight weeks straight, the longest run since January 2004. The Nasdaq has also risen for eight weeks straight, while the S&P 500 has risen for seven of the last eight weeks. The advance has left the Dow and S&P 500 at the highest levels since September 2008 and the Nasdaq at the highest point in nearly two years.

The week ahead brings the latest Fed meeting, with results due Wednesday, reports on jobless claims, consumer confidence and GDP and plenty of debate in Washington.

Selkin said that any changing in the language of the Fed statement Wednesday could provoke some market anxiety, as could some weak forward-looking guidance from any of the big companies due to report.

Results: So far, so good. Of the 172 companies in the S&P 500 to report earnings, 83% have topped expectations according to Thomson Reuters. Should that number hold up, it would be the best percentage of companies beating forecasts since Thomson began tracking the info over 15 years ago. The average for a quarter is about 61%.

Companies have been beating revenue expectations too, with 81% of S&P 500 topping forecasts.

Earnings are currently on track to have risen 50% from a year ago, up from a forecasted gain of 39% just one week earlier. Revenues are expected to have gained 11%, up from 10% the week before. Earnings and revenue forecasts were bumped up after last week because of better-than-expected results in the financial and technology sector.

"Financials are largely benefiting from easy comparisons to a year ago, but with technology, you're seeing real growth," said John Butters, senior research analyst at Thomson Reuters.

Financials are on track for earnings growth of 347% versus the prior year, while technology is on track for growth of 60% versus a year earlier.

He said that the dollar value of financial earnings is about $29 billion, up from the $6 billion to $7 billion earned in the 2009 quarter, but a far cry from the $50 billion earned in the first quarter of 2007.

By comparison, the dollar value of tech earnings is $33 billion, the second-best ever for the sector following $39 billion in the last quarter of 2009. However, he said tech earnings are on track to surpass that $39 billion number this quarter.

This week, 164 companies in the S&P 500 reports results, including Dow components Chevron (CVX, Fortune 500), Exxon Mobil (XOM, Fortune 500) and Procter & Gamble (PG, Fortune 500), automaker Ford Motor (F, Fortune 500), chipmaker Texas Instruments (TXN, Fortune 500) and package delivery firm UPS (UPS, Fortune 500).

Monday: There are no market-moving economic reports due Monday. In Washington, the Senate will take up a test vote on starting debate for the Wall Street regulatory reform bill.

Tuesday: The S&P/Case-Shiller 20 city home price index is expected to have fallen 0.1% in February from January levels, according to a consensus of economists surveyed by Briefing.com. In January the index fell 0.7% from the previous month.

The Consumer Confidence index from the Conference Board is due shortly after the start of trading. The index is expected to have risen to 54 in April from 52.5.

The Senate holds a hearing on the role investment banks played in the 2008 market meltdown. Among those scheduled to testify: Goldman Sachs (GS, Fortune 500) CEO Lloyd Blankfein and Fabrice Tourre - the executive at the center of the fraud case.

Earlier this month, the SEC charged Goldman with defrauding investors in a sale of securities connected to subprime mortgages, and also named Tourre in the suit.

Wednesday: The Federal Reserve's two-day policy meeting concludes, with an announcement on interest rates due in the afternoon. The central bank is widely expected to hold the fed funds rate, a key overnight bank lending rate, steady at historic lows near zero percent.

However, what the bankers say in the statement will likely move markets in the afternoon, particularly if they give more details about how they plan to withdraw trillions in stimulus put into play amid the height of the financial crisis. Any indication about the timing for raising interest rates would also move markets.

Thursday: Weekly and continuing jobless claims are due in the early morning from the Department of Labor.

Friday: The first reading on gross domestic product (GDP) growth in the first quarter is due before the start of trading. GDP likely grew at a 3.5% annualized rate after growing at a 5.6% annualized rate in the fourth quarter of last year.

The University of Michigan's consumer sentiment index for April is due after the start of trading. The index is expected to have risen to 71.8 from 69.5 in March.

The Chicago PMI, a regional reading on manufacturing, is also due after the start of trading. The index is expected to have risen to 60 from 58.8 in March. Any number over 50 indicates expansion.