Bad news from Cisco, more economic reports and Intel's first quarter earnings will keep techs busy. Asian and European markets were down, and the Dow is set to open sharply lower.
Cisco (Nasdaq: CSCO) will put a damper on any rally after announcing Monday night that it will report fiscal third-quarter earnings per share in the "low, single-digit range." First Call was expecting 8 cents a share. Cisco also said revenue for the quarter ending this month will be at least 30 percent below the $6.75 billion reported in the quarter that ended in January. It will also slash 8,500 jobs, more than the previously announced range of cuts.
Intel (Nasdaq: INTC) will also attract attention Tuesday. The chipmaker reports its first-quarter results after the closing bell. Analysts surveyed by First Call forecast that the chipmaker earned 15 cents a share, down from 36 cents a share a year earlier.
As if earnings weren't enough to digest, investors will also face a slew of economic reports. The Consumer Price Index for March is expected to have risen 0.1 percent, compared with a 0.3 percent increase in February. Housing starts and industrial production data are also due--housing starts are expected to have declined to an annual rate of 1.63 million in March from 1.65 million the month before. Industrial production is expected to have fallen 0.2 percent in March, compared with a 0.6 percent drop in February.
Expect the following technology stocks to be among Tuesday's most actively traded issues: Cisco, Computer Associates and Vitesse Semiconductor.
Technology investors returned from a three-day weekend in the mood to sell Monday as the Nasdaq composite fell 52 points to 1,909.45, while the Dow Jones industrial average gained 32 points to finish at 10,158.56.
At the Bell
The Dow Jones industrial average may open 110 points lower. The Standard & Poor's 500 index for June futures contracts was down 12.8 points to 1169 at 7:15 a.m. EDT in 24-hour electronic trading.
The Inter@ctive Week @Net Index fell 6 to 175.88.
Trading in Asia brought markets lower. The Nikkei 225 fell 187.80 to 1,3067.09, Singapore's Strait Times index fell 27.14 to 1,566.73 and Hong Kong's Hang Seng lost 383.02 to 12,606.45.
European markets were also down. London's FTSE 100 fell 89.50 to 5,677.10, the CAC 40 in Paris lost 133.29 to 5,239.42 and the Xetra DAX in Frankfurt was off 146.84 to 5,855.46.
Reuters contributed to this report.