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Tech Industry

Stocks remain mired in slump

Investors will be on the lookout for profit warnings for the tech sector.

Investors will be listening for whispers about tech earnings at an analyst conference Tuesday. The markets are set to open flat.

A Bear Stearns conference held over the next three days in New York should draw a lot of attention from investors. Companies scheduled to speak Tuesday include Computer Associates, Sun Microsystems, Dell Computer, Ericsson and Cypress Semiconductor.

Later this week, reports on May retail sales, wholesale and consumer inflation data, inventories, industrial production and consumer confidence will be released.

British Telecommunications and Deutsche Telekom said they would work together to build new-generation mobile networks in the UK and Germany.

BT and Deutsche Telekom, which have spent billions for high-speed, third-generation mobile licenses in Europe's biggest two cell phone markets, said the deal would cut capital costs by up to 30 percent. The two companies will share parts of their network in major urban areas.

In other telecom news, Verizon has stepped up its legal squabble with high-speed Internet access provider Covad Communications Group. The lawsuit alleges that former employees of Covad "report that they were 'pressured' and 'badgered' into issuing false reports about Verizon's services and 'reprimanded' if they failed to comply."

The Securities Industry Association is scheduled to release a set of "best practices" for analysts Tuesday. The move may be an attempt to head off intervention by the federal government; Congress is scheduled to hold hearings this week on possible conflicts of interest at large brokerage houses.

Stocks to watch
• Hughes Electronics warned that its DirecTV satellite service would sign up only about half as many subscribers this quarter as it had previously expected. The news also hit shares of Thomson Multimedia, since DirecTV was the number one U.S. client for Thomson digital set-top boxes.

• Loudcloud will report first quarter results after the market closes Tuesday. The company is expected to post a $1.21 per-share loss in its first full quarter as a public company. The Net infrastructure firm has already been forced to lay off 19 percent of its staff amid a cash crunch.

• CMGI is scheduled to report results after the bell Tuesday. The struggling Internet incubator's two subsidiaries, Engage and Navisite, reported earnings on Monday.

At the Bell
The Dow Jones industrial average should open flat with Monday. The Standard & Poor's 500 index for June futures contracts was down 3 points to 1,263 at 5:06 a.m. PDT in 24-hour electronic trading.

Reuters contributed to this report.