The good news about this earnings season

As a huge share of America's biggest companies report their results, it's looking to be an especially temperate earnings season.

This is the biggest week for earnings, with about a third of the companies in the S&P 500 set to report. Collectively, S&P 500 companies are expected to show year-over-year earnings growth of 7.6 percent for the second quarter, according to S&P Global. While that may sound good, it is actually the lowest expected growth for any quarter in 2016.

"Part of that is because we have negative expected growth for consumer discretionary, industrials and utilities," Erin Gibbs, portfolio manager at S&P Global, said Tuesday on CNBC's "Trading Nation." "But so far, so many companies are beating their estimates and beating expectations, it looks like just utilities will end up in the red."

Indeed, three-quarters of companies are beating their estimates, which is above the average rate, Gibbs pointed out.

Going forward, the key factor will be tech.

"Information technology is expecting over 16 percent earnings growth for Q2," she said. "It is supposed to be one of its best quarters of the year. We want to see those companies meet those expectations, if not beat."

Facebook is set to report after Wednesday's bell, while Amazon is due to report on Thursday afternoon.

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Trading Nation is a multimedia financial news program that shows investors and traders how to use the news of the day to their advantage. This is where experts from across the financial world – including macro strategists, technical analysts, stock-pickers, and traders who specialize in options, currencies, and fixed income – come together to find the best ways to capitalize on recent developments in the market. Trading Nation: Where headlines become opportunities.

Michael Santoli

Michael Santoli joined CNBC in October 2015 as a Senior Markets Commentator, based at the network's Global Headquarters in Englewood Cliffs, N.J.  Santoli brings his extensive markets expertise to CNBC's Business Day programming, with a regular appearance on CNBC's “Closing Bell (M-F, 3PM-5PM ET).   In addition, he contributes to CNBCand CNBC PRO, writing regular articles and creating original digital videos.

Previously, Santoli was a Senior Columnist at Yahoo Finance, where he wrote analysis and commentary on the stock market, corporate news and the economy. He also appeared on Yahoo Finance video programs, where he offered insights on the most important business stories of the day, and was a regular contributor to CNBC and other networks.

Follow Michael Santoli on Twitter @michaelsantoli

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