Recession Alert? Corporate Giants Are Massaging Their Earnings

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.