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Syriza Victory in Greece Doesn't Faze Equity Markets

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Today's financial recap and tomorrow's financial outlook.

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Yesterday, the Greek elections ended with the Syriza party taking the majority of the seats in Greece's Parliament. Similar to what had been predicted by pre-elections polls, Syriza took the popular vote by more than six percentage points and secured 149 of the 300 seats in the Parliament. Additionally, two other Greek political parties, the Independent Greeks and To Potomi joined with Syriza to form a coalition and "represent a united front" to the rest of the Eurozone. Conversations have already begun between Syriza officials and other European policymakers to determine the most fruitful way to move forward now that the election is decided.

Global equity futures were lower overnight as the Syriza victory had been perceived to be dangerous as it could start a chain reaction amongst other regions that may look to push back even harder against austerity policies in Europe. The S&P 500 (SPX) future traded down as much as 18 points, but clawed its way back to flat by the time the equity market opened for trading in the morning. An early plunge in US stocks was overcome with strong performance from the regional bank, real-estate, housing, and biotech sectors. Similarly, excluding the poor performance from Greece's stock market, European equities finished the day broadly positive. By the end of trading, the SPX closed up 0.26% and the small cap Russell 2000 (RUT) was up 0.99%.

Zion Bancorp (ZION) reported earnings after the close. The regional bank has a substantial amount of exposure to the energy industry in Texas. It reported in its filing that it had began to request additional collateral for some of the energy-based loans in its portfolio. Many market participants had presumed that banks would go about this process in March, but Zion began the process early due to the magnitude of the decline in energy prices. The stock was down 2.5% in post-market trading.

Tomorrow's Financial Outlook

Because of the severe winter weather expected to hit the Northeast tomorrow that has already shuttered public transit systems, trading activity will probably be lower than normal tomorrow. That being said, investors will be gearing up for the FOMC meeting that is scheduled to concluded on Wednesday afternoon. Tomorrow's economic reports include December durable goods orders, November home prices, and January consumer confidence. Durable goods are expected to bounce back from subpar growth in October and November and grow by 0.6% in the month.

Overnight, China will report industrial profits from December. Also, the UK is scheduled to report advance fourth quarter GDP in the morning. Last week, the minutes of the Bank of England's lately policy meeting indicated that it had downgraded its economic assessment of the UK even further due to the slowdowns related to the energy industry. Growth is expected to be 0.6% from the prior quarter and 2.8% from a year ago.

It will be a heavy day for earnings reports tomorrow. Notable reports include Bristol Myers Squibb (BMY), DuPont (DD), Lockheed Martin (LMT), Pfizer (PFE), Procter and Gamble (PG), Coach (COH), Caterpillar (CAT), AK Steel (AKS), Freeport McMoran (FCX), AT&T (T), US Steel (X), Apple (AAPL), Yahoo! (YHOO), and 3M (MMM).

Twitter: @Minyanville

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No positions in stocks mentioned.

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