(By Salman - iStockAnalyst Writer)US stocks finished mostly down on Tuesday after healthcare giant reported disappointing quarterly results.
The Dow Jones Industrial Average fell 14.74 points or 0.15% to finish at 9,871.06. The S&P 500 subtracted 3.01 points or 0.28% to end at 1,073.18. The Nasdaq Composite added 0.75 points or 0.04% to 2,139.89.
Early on Tuesday, Johnson & Johnson (NYSE:
JNJ) reported third-quarter net income of $3.35 billion, or $1.20 a share, compared with $3.31 billion, or $1.17 a share, for the same quarter in 2008. Revenue slipped 5% to $15.08 billion, from $15.92 billion. The company boosted its 2009 adjusted earnings outlook to the range of $4.54 to $4.59 a share. Shares of the healthcare giant plunged $1.53 or 2.45% to $61.
Shares of drugmakers finished with losses. Pfizer Inc. (NYSE:
PFE) lost 31 cents or 1.81% to $16.79. Merck & Co. (NYSE:
MRK) tumbled 44 cents or 1.34% to $32.42.
Travelers Companies Inc. (NYSE:
TRV) plummeted 79 cents or 1.62% to $48.04.
Shares of Alcoa Inc. (NYSE:
AA) dropped 15 cents or 1.05% to $14.10.
Among gainers, shares of home improvement retailer Home Depot Inc. (NYSE:
HD) climbed 53 cents or 1.96% to $27.57. AT&T Inc. (NYSE:
T) gained 34 cents or 1.33% to $25.94.
Cisco Systems (
CSCO) announced Tuesday that it has agreed to buy Starent Networks (NASDAQ: STAR) for $2.9 billion in cash.
Johnson Controls (NYSE:
JCI) said on Tuesday that it anticipates fiscal 2010 earnings per share to range between $1.35 and $1.45 on 9% revenue growth to $31 billion. The company also said that fourth-quarter earnings are due to range between 40 and 42 cents a share. Shares of Johnson Controls tumbled 65 cents or 2.40% to $26.48.
Meanwhile, AIG (NYSE:
AIG) announced Tuesday that it has reached a deal to sell its Taiwan life insurance unit to a consortium of companies for $2.2 billion. Shares of the insurer finished at $44.53, up 13 cents or 0.29%.
Shares of Goldman Sachs (NYSE:
GS) declined $2.92 or 1.54% to $187.23 after top banking analyst Meredith Whitney downgraded her rating on the stock to "neutral" from "buy."
Shares of commercial lender CIT Group Inc. (NYSE:
CIT) sank 12 cents or 11.54% following announcement that CEO Jeffery Peek will resign on Dec. 31.
Dell Inc. (NASDAQ:
DELL) founder Michael Dell, who announced a $3.9 billion takeover of Perot Systems Corp. in September, said his company is "rapidly developing" merger expertise and will be "reasonably active" on the acquisition front.
Intel (NASDAQ:
INTC), the world's largest chip maker, will be reporting its quarterly results after the closing bell.
European stocks settled lower. The UK FTSE lost 56.02 points or 1.08% to 5,154.15. The German DAX and French CAC decreased 1.19% and 1.15% respectively.
Asian stocks finished higher. The Nikkei 225 rose 60.17 points or 0.60% to $10,076.56. The Hang Seng index of Hong Kong advanced 168.01 points or 0.79% to 21,467.36.
NYMEX crude oil for November delivery climbed 94 cents or 1.3% to $74.21.
Disclosure: Author doesn't own any of the stocks discussed here.
