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By Jason Stipp and Jeremy Glaser | 05-18-2012 01:00 PM

Who's Checking Out?

Some high-profile exits in international and corporate news are worth checking into, says Morningstar markets editor Jeremy Glaser.

Jason Stipp: I'm Jason Stipp for Morningstar and welcome to The Friday Five.

Morningstar markets editor Jeremy Glaser is checking in on who is checking out in the market this week. He is here to offer the details.

Jeremy, thanks for joining me.

Jeremy Glaser: Jason, thanks for having me.

Stipp: What do you have for The Friday Five this week?

Glaser: Well this week we're going to talk about Greece, Wal-Mart, J.P. Morgan, Avon, and finally Yahoo!

Stipp: Greece has been causing the market fits all week and even before this week, obviously. The big question is whether they will be able to stay in the eurozone or they will have to check out. What's your take?

Glaser: This week a lot of the conversation seems to have shifted from, will Greece be able to stay in the euro to when are they going to leave the euro and how exactly is it going to happen?

I think that it's a really interesting question. I think one of the things that we've talked about before is that it can be a bit of a self-fulfilling prophecy: If people in Greece believe that they are going to be leaving the euro, and that the drachma is going to be reintroduced, and that it's going to be massively devalued against the euro, there is a lot of incentive to move your deposits out of Greek banks into German banks, into other safer euro-denominated accounts in order to keep your purchase power parity up. And I think we're starting to see that happen. There are reports of pretty massive bank runs out of Greece, in the magnitude of almost $1 billion a day leaving some of the Greek banks, and that really weakens these already weak institutions, and I think it just makes it more likely that Greece won't be able to sustain its current path, and that almost no matter what happens with the government, no matter what happens with these new elections, that Greece will end up getting forced out of the single currency.

So this is going to be something that could happen very quickly. I think that investors just need to be aware of that kind of tail possibility. No one knows exactly what the impact will be on the market. I think it could be quite substantial, and I think it's a story that we're going to be following very closely.

Stipp: Certainly early in the week Greece was overshadowing every other piece of news, but we did get some corporate news out of Wal-Mart that showed lots of folks are checking out at their cash registers. What's the story?

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