NEW YORK (CNN/Money) -
Investors will watch economic data Thursday for clues about the strength of the U.S. economy, trying to judge whether the Federal Reserve will raise interest rates at a measured pace in the second half of the year.
The Institute for Supply Management will release its national survey of purchasing managers for June, one of the first comprehensive economic releases of the month. It covers economic indicators including new orders, production, employment, inventories and deliveries.
Analysts expect the survey to hit 61.5 from 62.8 in May, a modest decline that still indicates the economy is growing, according to Briefing.com.
New orders and production are expected to hold near May's strong levels, while employment is expected to edge lower from May's 31-year high of 61.9, reported Briefing.com.
Readings over 50 indicate expansion relative to the prior month, and readings below 50 show contraction on the previous month.
After the bell, manufacturer of alcoholic beverages Constellation Brands reported record first-quarter net sales of $927 million, up 20 percent from a year earlier, on increased demand. Net income increased 31 percent year-on-year to $51 million.
The company said it would raise its full-year earnings per share estimates. Constellation (STZ: Research, Estimates) stock rose 2.3 percent in after-hours trade on Inet.
Circuit board maker Merix also reported earnings after the bell, announcing a first-quarter net loss of $1.6 million or 8 cents per share, compared with a loss of $1.39 per share a year earlier.
Even though the company narrowed its loss, it missed analysts' forecast for a net loss of 2 cents per share. Merix (MERX: Research, Estimates) stock sank 10.8 percent after the bell.
Thursday morning,Biomet Inc. (BMET: Research, Estimates) and ConAgra (CAG: Research, Estimates) will report quarterly earnings.
Two licensers of the Howard Stern show sued Clear Channel Communications Inc. (CCU: Research, Estimates) for breaking contract when it pulled Stern from airwaves in six cities. Plaintiffs One Twelve Inc. and Infinity Broadcasting East, the FCC licensee of New York radio station WXRK where the show is produced, seek more than $10 million. The broadcaster's stock was flat after the bell.
Drug wholesaler Cardinal Health Inc. said late Wednesday it has been subpoenaed by the Securities and Exchange Commission with regards to how it the company classified revenues. The company said the U.S. Attorney's Office for the Southern District of New York has launched a probe on the same matter.
Cardinal (CAH: Research, Estimates) also cut its 2004 earnings growth estimate to 11 percent down from a prior forecast for growth in the mid-teens. Shares plunged 13.6 percent in after-hours trading on Inet.
Dell Inc. is offering a $100 rebate on some of its Dell Digital Jukebox music players if customers send in their old Apple iPods to be recycled. Apple's iPod and iPod mini players have more than 50 percent of the market for digital music players, and even more when measured by revenue, Apple has said.
After the bell, Dell (DELL: Research, Estimates) stock edged higher 0.2 percent, Apple (AAPL: Research, Estimates) stock dipped 0.3 percent.
In a sign of confidence in the financially troubled tire maker, Goodyear Tire & Rubber Co. shareholders re-elected Wednesday chairman Robert J. Keegan to another three-year term. Keegan told investors at the company's annual meeting that Goodyear would continue to work towards a return to profitability after reporting more than $2 billion in losses over the past nine quarters.
Goodyear (GT: Research, Estimates) shares were flat after the bell, after losing 0.6 percent in active New York Stock Exchange trading Wednesday.
Taser International Inc. announced late Wednesday it won a $1.8 million contract to provide stun guns to military personnel -- the company's largest ever order. Taser (TASR: Research, Estimates) stock edged lower 0.4 percent after the bell.
-- from staff reports and wires
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