Check out which companies are making headlines after the bell Thursday:

Dell - The computer hardware and software company posted earnings of 21 cents a share, excluding one-time items, on sales of $14.07 billion, against expectations for 35 cents a share on sales of $13.50 billion. Shares were largely unchanged in extended-hours trading.

(Read More: Stocks End Lower on Fed's Comments; CSCO Up 13%)

JCPenney - The retailer posted a loss of $1.31 a share, excluding one-time items, on revenue of $2.64 billion, missing expectations for a loss of 89 cents a share on sales of $2.74 billion. And the company said first-quarter same-store sales fell 16.6 percent, as previously reported. Shares toggled in and out of positive territory in extended-hours trading.

If there is one lesson that resonates from years of watching markets, it's that earnings quality doesn't matter in cult stocks on the rise. Nobody wants to hear it. Look no further than Netflix. Or even Amazon.

All of which brings us to Tesla. Flying red flags over its earnings quality would appear to be foolhardy.

Still, to ignore it is just as foolhardy, especially given the first sentence of the most recent "shareholder letter" accompanying the fledgling car company's earnings. "Tesla reached profitability in the first quarter of 2013 for the first time in our ten year history," it stated.

Furthermore, lower in the same letter Tesla says: "We believe that the accepted automotive industry approach of focusing on margin improvement,profitability and deliveries are the more meaningful metrics for measuring progress."

If profits matter going forward, so does earnings quality. And according to Gradient Analytics, the earnings quality gets a grade of 'F."

What stands out the most?

"So many things," says Gradient research director Donn Vickrey."By declaring themselves profitable, I said there is just no way. How can this be at this point in the cycle? It has to be purely a paper profit and at that some elements of the paper may be lower quality than usual."

Paper or not, Vickrey believes whatever Tesla's profitability, it isn't sustainable.

Rather than go through all of his points, let's focus on just one: warranty accruals. This is the amount the company puts aside for expected warranty expenses — a non-cash charge that hits earnings as a cost of goods sold. The lower the provision, the less of a hit to earnings.

It's highly subjective, and Tesla current reserves at a rate,relative to sales, in-line with Ford and General Motors. But its warranty is longer than mainstream auto companies and "its product is based on new technology with unproven reliability," according to Gradient's report on Tesla." Of particular concern: The firm's eight-year, 100,000 mile battery warranty could prove to be extremely costly."

But what if the company is so new it simply doesn't know — so uses existing auto companies as a benchmark?

Under accounting rules, Vickrey says, if you don't know what they'll be "they should be higher, not lower."

Put another way: it could be yet another possible hit to earnings.

All in, Gradient estimates that once nonrecurring, unsustainable "and cosmetic" benefits are removed — rather than reporting a profit of $11.3 million, Tesla would've lost $91 million. And that doesn't include a more conservative warranty accrual. The good news, that's better than the $464 million it lost a year earlier — but not "profitable."

And we're not even talking about anything to support the current valuation.

My take: We've seen this before. Cult stocks like this run over any and all skeptics and critics — and Tesla is likely to continue leaving tire marks for the foreseeable future. Earnings quality, or lack thereof, rarely matters at this phase of a growth company's cycle. But Tesla makes such a big point of talking "profitability" that it should.

And what I know is this: investors may not care about earnings quality now, but one day it's likely they will wish they had. This has nothing to do with Tesla the car, and everything to do with Tesla's potential vulnerability with its stock.

P.S.: Tesla the stock is very dear to CEO Elon Musk. According to Tesla's proxy, his option grants are tied heavily to the company's market cap. Onward...

Beaten-down gold just can't find any love.

The metal bungee jumped Thursday—first to a sharply lower $1,368, then to a higher low in the mid-$1,380s—as the dollar sold off. Gold ended lower for a sixth day, at $1,386.90 an ounce, a decline of $9.30. But it could drop further, according to analysts.

"I'm not seeing any bargain hunters in there right now, and I don't see any reason why we won't test" test the April lows of $1,321, said Kevin Grady, president of Phoenix Futures and Options. "This is a bear market, and normal corrections are commonplace in bear markets," "The fact that gold rallies back $20 off the lows I don't think is signaling anything."

Check out which companies are making headlines before the bell on Thursday:

Wal-Mart — The retailer reported first quarter profit of $1.14 per share, one cent shy of estimates, with its revenues and current quarter guidance also falling short of consensus. A 1.2 percent decline in same-store U.S. sales marked the end of a six-quarter streak of rising sales, with CEO Mike Duke citing "considerable headwinds to topline sales" but also expressing confidence about the longer term.

Kohl's — Kohl's earned 66 cents per share for the first quarter, ten cents above estimates, yet revenues fell short of forecasts. Kohl's did point to better than expected gross margins and expense management during the quarter as positives.

Thursday's markets will navigate data on jobs, housing and inflation, but traders may be most interested in the words of Fed speakers.

Five Federal Reserve officials will get special attention because the idea of Fed tapering, or dialing back, on its quantitative easing program has been the talk of the street this week.

Art Cashin, director of floor operations at UBS, said traders are looking for answers from the Fed on what it intends, after a Wall Street Journal article this weekend said Fed officials are planning to pare back their purchases gradually. The Fed is currently buying $85 billion in Treasurys and mortgage securities each month, in a program that has been viewed as a positive for stocks and a hedge against economic weakness.

"What I'm looking for at some point, the Fed is going to have to talk about it, not just the tapering – the fact that there are fewer mortgage bonds, fewer Treasury bonds, " Cashin said. The Congressional Budget Office this week said it expects a smaller deficit - $642 billion this year – and traders now expect the Treasury to cut back on its new issuance, resulting in fewer securities pouring into the market.

"They've got to get it out there clearly, and usually what (Fed Chairman Ben) Bernanke does, is he starts hinting. On Thursday, you're going to see a saloon full of Fed speakers, but this is something you're going to want to reserve for the chairman," he said.

Philadelphia Fed President Charles Plosser speaks at 3:45 a.m. ET in Milan on the economic outlook, while Boston Fed President Eric Rosengren speaks at 7:45 a.m. on the impact of austerity on monetary policy, also in Milan.

Dallas Fed President Richard Fisher speaks at 9 a.m. at the NABE energy conference in Houston, and Fed Gov. Sarah Bloom Raskin speaks on the prospects for recovery at 12:30 p.m. San Francisco Fed President John Williams speaks at 2:30 p.m. on the economy in Portland, Ore.

As for Thursday's data, jobless claims will be particularly watched because the improvement in claims has been a bright spot, and is possibly signaling an improving employment picture. Last week, there were 323,000 unemployment claims reported and the four year average is at a five year low. Claims are reported at 8:30 a.m.

"We're at 330,000. We expect the generally good trend to continue. Maybe last week was a little overstated, but we still think things will be good," said Michael Feroli, chief U.S. economist at J.P. Morgan.

(Read More: Yoshikami: What Happens After Ben?)

There is also CPI, consumer inflation data and housing starts, both at 8:30 a.m. The Philadelphia Fed survey is released at 10 a.m. There are a few companies of interest reporting earnings, including Wal-Mart and Kohl's ahead of the open. Dell, JC Penney, Nordstrom, Aplied Materials, and Autodesk report after the close.

Stocks Wednesday closed at new highs, after the market got off to a slow start on disappointing industrial production data. But the market was helped by news from a sector that's been helping drive gains – housing. The National Association of Homebuilders sentiment reading rose more than expected in May and sales expectations were at a five-year high.

(Read More: Talk of Fed Tapering Not Spooking Markets Yet)

Feroli raised his forecast for second quarter GDP growth to 2 percent from 1.5 percent this week, after better-than-expected retail sales. "I think you have mixed messages. Manufacturing is in a little bit of a soft patch. Consumers are doing pretty well. Housing hasn't changed much," Feroli said.

A diverse group of stocks helped carry the market higher. Of companies in the S&P 500, 187 stocks reached new highs Wednesday and a number of them were at all-time highs including Wal-Mart, MasterCard, Illinois Tool Works, 3M, Pepsi, Estee Lauder and Blackrock. Some of the defensive sectors were back in the lead with consumer staples and utilities among the top three.

The S&P was up 8 at 1658, and the Dow was up 60 at 15,275.

The shrinking federal budget deficit and spotty improvement in the economy has turned talk on Wall Street to the idea that Fed will start planning to "taper" back its bond buying activity.

Wall Street has treated the Fed's quantitative easing progam as a security blanket, and stock investors have seen it as fuel for the market's rise but also as a safety net.

Tapering, or a gradual reduction in the Fed's monthly $85 billion Treasury and mortgage purchases, is expected to be months away. But bond traders are chatting about it more as a reality now, than they were just a few weeks ago when the economy looked a bit worse.

"We're now in an environment where the market can smell the end of QE coming up, or at least a tapering," said Deutsche Bank G-10 currency strategist Alan Ruskin. "They can see a market where bond yields are higher."

Another close, another new high for stocks.

Some observations:

1. Bonds getting hurt, with iShares 20 Year Treasury Fund (TLT) down 4.7 percent this month...but surely speculation the Fed will be lightening up its bond purchasing program...perhaps as early as September...is a negative for stocks?
   
2. The U.S. Dollar Index is rallying, up 2.6 percent this month, but instead of being viewed as a sign that the U.S. economy is improving, most traders are viewing this as an indication of an intensifying global currency war.
   
3. Commodities, particularly base metals are having a terrible year, with copper down 11 percent, aluminum down 10.8 percent, zinc down 12.3 percent. Hardly a vote of confidence in the strength of the global economy.
   

What do these contradictory cross-currents mean? This is what happens when you get global zero-interest-rate policies and QE3. You get strange distortions.

And stocks at new highs? The favorite phrase on the floor is TINA: There Is No Alternative.

Check out which companies are making headlines after the bell Wednesday:

Cisco - The networking equipment manufacturer reported earnings of 51 cents a share, excluding one-time items, on revenue of $12.22 billion, edging past expectations for 49 cents a share on sales of $12.18 billion. Meanwhile, the company handed in current-quarter earnings guidance that matched Wall Street expectations and said it expects revenue growth of between 4 and 7 percent versus estimates for 7 percent. Shares soared in extended-hours trading.

(Read More: Dow, S&P End at Fresh Highs; AAPL Drops 3%)

Apple - Susquehanna initiated coverage of the iPhone maker with a "neutral" rating and a $480 price target. The company slumped more than 3 percent in the regular session.

Jack in the Box - The fast food chain posted earnings of 29 cents a share on sales of $356 million, missing expectations for 31 cents a share on revenue of $359 million. In addition, the company said it expects to see full-year earnings of between $1.55 a share and $1.65 a share, mostly in line with expectations for $1.61 a share. Shares slipped in extended-hours trading.

Take a look at some of Wednesday midday movers:

Google hit a new all-time high and traded over $900 a share for the first time amid the Google I/O conference. Google VP Sundar Pichai says that Google's search engine, Chrome is the "most popular browser used in the world."

Computer Sciences fell hard after the company reported a fourth-quarter profit on lower operating expenses which helped offset a decline in revenue.

Airlines higher: Morgan Stanley says "Rally Has Legs."

Airlines bucking the lower trend this morning: Delta (DAL), United Continental (UAL), US Airways (LCC), and Republic Airways (RJET) rise three to four percent.

Morgan Stanley made comments on airlines this morning, saying: "We continue to expect the stocks to grind higher from here in the shorter-term."

One immediate catalyst was Delta, which restarted its dividend on May 8. And while many airlines are at or near new highs, "We do not see a setup for a material short-term pullback in shares," adds Morgan Stanley.

The reasons:

1. Oil is higher, but jet fuel prices have not increased with it;
2. Expectations that passenger revenues will strengthen in May, June, and July versus prior months

Elsewhere: Zynga (ZNGA) and Groupon (GRPN) haven't had much good news recently, but they got it this morning. Activist investment firm Jana Partners, controlled by Barry Rosenstein, revealed new stakes in both companies, and fairly large positions: 21.9 million shares for Groupon (3.3 percent of outstanding shares), 25.4 million shares for Zynga (3.1 percent of outstanding shares). Both are up about six percent.