Why the market cheers mediocre results
Bad earnings are still bad, even if they were expected.
Mattel (MAT) reported Tuesday that profit rose 20% to $96.2 million, or 28 cents a share, as price increases offset rising costs for raw materials even though revenue was little changed at $1.16 billion. Goldman Sachs' (GS) second-quarter net income plunged 12% to $962 million, or $1.78 per share. Revenue at the New York investment bank fell 9% to $6.63 billion. Coca-Cola's (KO) quarterly profit barely budged and revenue rose 2.7% to $13.09 billion.
Yet these are all Wall Street "winners."
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The solid report comes a month after the retailer closed all of its Canadian operations.
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