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Tech Industry

Economic reports take center stage

Data on wholesale inflation for May and weekly jobless claims could help tech stocks out of their slump.

    Economic data on wholesale inflation for May and weekly jobless claims could help shake technology stocks out of their slump Thursday. The Dow is set to open lower.

    The government's reading on inflation is predicted to show a May increase of 0.3 percent, the same rate as in April. The Producer Price Index is a key reading of inflation at the producer level.

    A weekly reading on new unemployment claims is also due. Economists are forecasting a drop to 425,000 new claims last week from 432,000 the prior week.

    Stocks to watch
    • Ingram Micro reduced its second-quarter sales forecast and said it will break even or have an operating loss due to slowing demand abroad. Sales for the computer-products distributor will be $5.8 billion to $6 billion, the company said, compared with forecasts last month for $6.3 billion to $6.7 billion. Revenue was $7.3 billion in the same quarter a year ago.

    • Silicon Storage Technology also issued a warning. The maker of memory chips and cards for computers said second-quarter profit and revenue will miss targets because of order cancellations from some customers. The company now sees revenue of around $60 million to $68 million and profit of 3 cents a share to breakeven. Silicon Storage was expected to have a profit of 6 cents, according to First Call.

    • CTS, a maker of components for cellular phone and communications equipment will also come in short of expectations. The company said it expects its second-quarter revenue to be about $150 million on a per share loss of 5 cents to 10 cents, before costs. The company was expected to earn 8 cents according to First Call.

    • Crossroads Systems could be on the rise on news it has settled up some legal issues. The maker of computer networking equipment said it has settled a patent-infringement lawsuit it brought against Pathlight Technology, a unit of Advanced Digital Information. Advanced Digital could suffer from the news.

    At the bell
    The Dow Jones industrial average may open 37 points lower. The Standard & Poor's 500 index for June futures contracts was off 4.3 points to 1,248 at 7:15 a.m. EDT in 24-hour electronic trading.

    Reuters contributed to this report.