Tim Mullaney: Earnings are the ultimate stock-market reality show

A week ago, veteran RBC Capital Markets internet analyst Mark Mahaney made an ill-timed but, it appears, utterly correct call about third-quarter earnings, saying profits for internet companies will be great. Then the market tanked, with internet and technology stocks doing worse than everything else.


Forgotten on the way to bear-marketville was the sweet little idea that it is earnings season, and earnings are pretty good.

On Tuesday morning, Goldman Sachs GS, +0.98% beat profit forecasts by 17% and Morgan Stanley MS, +0.91% beat by 15%, helped by investment-banking and wealth-management revenue gains.

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