Earnings Watch: With trade tensions escalating, here are 5 things to know about this earnings season

The second-quarter earnings season will kick off in earnest next week, and investors should brace for bad news with all signs signaling a second straight decline that will confirm an earnings recession.

The big reveal will come from management commentary about the causes of the slump and whether it will drag on into the coming quarters.

As second-quarter results have trickled in ahead of the unofficial kickoff on Monday, S&P SPX, +0.46% earnings per share are expected to decline 3.0% from a year ago, following a 0.3% drop in the first quarter, according to FactSet data.

Recessions are generally defined as two consecutive quarters of declines.

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