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By Jason Stipp and Jeremy Glaser | 01-30-2015 09:00 AM

Friday Five: What's Weighing on Earnings?

Though Apple had a record-breaking quarter, the energy slide and strong dollar have been fierce headwinds for many other firms.

Jason Stipp: I'm Jason Stipp for Morningstar and welcome to The Friday Five, Morningstar's take on five stories in the market this week. Joining me with The Friday Five is Morningstar markets editor Jeremy Glaser.

Jeremy, thanks for being here.

Jeremy Glaser: You're welcome, Jason.

Stipp: Let's start with Greece this week. Their elections were as expected and now there is a big focus on potentially renegotiating the terms of their bailout. What's the potential fallout here?

Glaser: This was a busy earnings week, but I wanted to start in Greece, as this has the potential to be quite an important story in the weeks and months ahead.

As expected, Greece got a new government, and there was a little bit of a shockwave through, particularly, the Greek financial system, as the government started to take steps to make good on their campaign pledges of trying to roll back some of the austerity measures and to renegotiate the terms of the bailout that they received a few years ago, in order to reduce some of the pain that the Greek people have felt during this time.

And as that happened, Greek stocks sold off pretty substantially, particularly Greek banks. But the rest of the European markets, although they felt it, you didn't see nearly the kind of reaction that you got with the Greek markets, which leads me to believe that the market is guessing that this is just going to be another road bump, but that they will basically muddle through somehow, and that if they don't, the potential downside of Greece leaving the eurozone is much less worse today, is much more contained now, than maybe it was just a few years ago.

I think the muddle-through scenario is probably still the most likely, and they will find some way to make everyone, if not happy, at least a little bit less unhappy to the point where they will be able to continue down this path. Europe is, in fact, a little bit better prepared to handle a Greek exit now than it was a few years ago. I still don't think it will be quite as painless as some think, but definitely not the kind of potential problems we would have seen before.

For investors who are worried about this, one of the key things to watch will be what's happening with the bonds of other peripheral countries. Are we seeing that contagion come out of the Greek markets and into other markets? Are investors starting to get worried about that? That could be a sign that there is still some contagion there. It's a little bit tricky to detect with ECB's bond-buying program simultaneously starting up, but I think that definitely will be one of the key metrics to watch.

Stipp: It was a big earnings week this week, as you said, and one of the headliners was Apple. They blew past analysts' expectations, and it was all about the iPhone.

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