, Columnist
Recession Alert? Corporate Giants Are Massaging Their Earnings
The games number crunchers play can signal a deteriorating economy.
Accountants at big, diverse companies can pull profits from many places.
Photographer: H. Armstrong Roberts/ClassicStoc/Archive PhotosThis article is for subscribers only.
Recessions are rare — or, at least, government statistical bureaus are slow to recognize them. But big corporations don’t take chances. They work hard to avert an earnings recession, usually defined as two consecutive quarters of profit decline.
Looking at S&P 500 companies’ earnings, it doesn’t feel like an economic downturn is on the horizon, even as worries about a global economic slump mount. These large companies may be more resilient, with their currency hedging tools and diversified businesses, one could argue.