Can you believe it? The sky has not fallen, hell hath not frozen over, and economies will continue to function despite the outcome of yesterday's Greek elections. Of course, all of this was made easier by a victory from the conservative New Democracy party over the anti-bailout forces of Syriza. With the victory, a pro-bailout coalition is expected to be formed, and a new phase of policymaker back-and-forth will undoubtedly ensue. One thing is certain in all of this: Greece, and the rest of Europe, is not out of the woods by any means. This morning's market reaction reflects that truth, as Spanish bond yields continued their rise and European equities respond in lackluster fashion. Domestically, futures on the Dow Jones Industrial Average (INDEX: ^DJI ) trailed off from an early morning spike and point to a lower open for the blue-chip index.
Now let's dive into a few issues facing investors this week, sans Greece.
FOMC, Forking Out More Cash?
Tuesday and Wednesday the 12-member FOMC, or Federal Open Market Committee, will meet to discuss the nation's economy and financial situation. Recent domestic economic data has many predicting new monetary easing actions are coming soon. Given the risks presented by these readings, as well as the burgeoning threat from Europe, a serious discussion on new actions will undoubtedly enter the committee's discussion this week. While an immediate move isn't a certainty, if a decision were to come, it would likely involve a new asset purchase program or an extension of short-term interest rate guidance past the prior timeline of 2014.
Notable earnings reports this week include a Tuesday morning report from FedEx (NYSE: FDX ) followed by Oracle (Nasdaq: ORCL ) on Thursday afternoon. News from FedEx should offer some visibility into global spending patterns, while shareholders will also be looking for positive results driven by lower fuel costs. Oracle earnings will offer a glimpse into trends in enterprise IT spending, an area of noted weakness for a number of big tech companies in the previous quarter.
Mr. Softy's show and tell
Software juggernaut Microsoft (Nasdaq: MSFT ) is hosting what it refers to as a "major Microsoft announcement" at a media event later today in Los Angeles. The latest speculation is that Microsoft will be gunning straight for the iPad and Amazon's Kindle Fire with the introduction of its own branded tablet. While this is all speculation at this point, it would be similar to the move Google made in the early innings of the Android operating system by paving the way with its own Google branded phones. Capitalizing on the revolution in mobile computing is a key area of focus for Microsoft, especially as it rolls out its newest Windows operating system. However, our analysts know of another company positioned to capitalize on mobile through its hidden components in smartphones and tablets. Find out what company this is in our special report, available for a limited time -- free of charge -- by clicking here now!