What to Look for in the Markets Today

More fear from Europe pushed the Dow Jones Industrial Average (INDEX: ^DJI) down yesterday with a 0.59% dip, and the S&P 500 (INDEX: ^GSPC) followed with a 0.43% loss. While Greek attempts to put together a government -- one that the financial markets hope will agree to honor the bailout terms -- only one Dow component, Cisco (NAS: CSCO) , reports earnings today. Here's a quick look on what to expect..

Networking after the bell
Cisco will report earnings after the market closes, and investors will get further information on the progress of the company's restructuring efforts that began last May. This restructuring is meant to "simplify" its operating model, as well as focusing on its core business, collaboration, data and the cloud, and video. And last quarter, Cisco saw a 1.1% increase in gross margins compared with the previous year because of "lower overall manufacturing costs, including benefits from value engineering."

Analysts expect earnings per share to be $0.47, up from $0.42 from a year ago, while revenue is expected to ring in at $11.58 billion, up from last year's $10.86 billion.

European troubles
Combine the Greek drama, the French election of Francois Hollande, who favors more spending versus the previously planned austerity, and the resignations in the Dutch government over a failure to agree on a budget, and investors fear the political uncertainties. While American indices such as the Dow and the S&P 500 have gained more than 5% this year, European indices such as the FTSE 100 (INDEX: ^FTSE) and the STOXX 50 (INDEX: ^STOXX50E) are negative:

^INX Chart
^INX Chart

^INX data by YCharts

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At the time thisarticle was published Fool contributorDan Newmanholds no shares of the companies mentioned above. Follow him on Twitter, where he goes by @TMFHelloNewman. The Motley Fool owns shares of Cisco Systems and has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.

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