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If market valuations contract, corporate America could still keep the rally going by meeting and exceeding profit expectations, he said.
Even so, exceeding profit from a year earlier was relatively easy to accomplish, since stocks and corporate and emerging-market bonds slumped in 1998 after Russia's default.
The deal sent Internet shares even higher, helping to push the Nasdaq stockmarket to another record.See article: @Home buys ExciteAdding to Nasdaq fever, Microsoft shrugged aside its antitrust problems with the American government by far exceeding profit expectations in the second quarter.
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Under Mr. Schacht and after his departure, Lucent exceeded profit forecasts for 15 consecutive quarters -- a string that ended this year.
Without the one-time losses, the company would have exceeded profit forecasts by 6 cents a share.
With 6 percent of S.& P. 500 companies having reported, 55 percent have exceeded profit expectations, below the historical average.
Boeing on Wednesday exceeded profit expectations for the second quarter as a result of more plane sales, a development that helped it raise its 2011 earnings guidance.
Target said in a news release that it was on track to exceed profit plans for the quarter, by 10 cents or more.
Mr. Mehling consistently exceeded profit goals for Monitor Capital Advisors and just six days before he was fired, he received a raise, a $147,000 bonus and a glowing review from Seymour Sternberg, chief executive of New York Life, one of the nation's largest life insurance companies.
Microsoft is the latest technology company to exceed profit expectations.
Debts exceeded profits.
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