NEW YORK - Investors will grapple next week with major US economic reports and the looming possibility of a Greek exit from the euro zone, which is likely to keep dragging on equities for weeks to come. As contingency plans are made for Greece's possible departure from the euro zone, investors may not get a clear picture until Greece holds elections on June 17. As a result, US economic statistics may grab the spotlight during the holiday-shortened week. Major releases include consumer confidence, gross domestic product and on Friday the May non-farm payrolls report, which could provide clues on whether the economy is running out of steam or has simply hit a soft patch. US financial markets will be closed on Monday for the Memorial Day holiday. Corporate news next week is expected to be light, with the first-quarter earnings season largely in the rear view mirror. Among S&P 500 (MXP:^GSPC - News) companies, only government contractor SAIC Inc (NYS:SAI - News) is scheduled to report next week. "We are going to continue to worry about Europe no matter what. That is going to be a concern," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York. "But with the two main events in Europe not taking place for several weeks, the market will probably concentrate more on the domestic economy and the economic numbers." But Europe will continue to be closely monitored, with equities affected by any developments in the fiscally troubled region. Increasing worries about the region, coupled with tepid US data, have sent the S&P 500 down more than 5 percent for May. As the Greek elections draw closer, headlines from Europe could unsettle investors. Belgian Deputy Prime Minister Didier Reynders said it would be a "grave professional error" if central banks and companies were not preparing for a Greek exit from the euro zone. In addition, French banks, which are among the lenders most exposed to Greece, have stepped up their efforts on contingency plans for the debt-laden country leaving the euro zone, sources familiar with the situation said. Any US data in the coming week which points to an economy pulling out of the doldrums could divert attention from Europe and provide investors an incentive to jump into stocks, which have become cheap during the recent pullback. Analysts have pointed to the 1,275 to 1,280 range for the benchmark S&P index, just below the 200-day moving average, as a key level of support the market is likely to challenge.
