Health stocks were down - as were the broader markets - amid the kickoff of third-quarter results.
biotechnology indices were down 1.1% and 1.7%, respectively. Big biotech
(AMGN - Get Report)
(BIIB - Get Report)
were down 2.7% and 0.9%.
Pharmaceutical stocks fared better than their biotech cousins -- the Amex pharma index was up just 0.8%,
One component of the pharma index,
(LLY - Get Report)
said Tuesday that it has commenced the tender offer for all outstanding shares of
at $70 a share. The $6.5 billion deal was announced last week.
ImClone shares rose 82 cents, or 1.2%, at $67.82, while Lilly's shares fell 88 cents, or 2.4%, to $34.98 on Tuesday.
One of the first health stocks to release earnings,
Johnson & Johnson
(JNJ - Get Report)
reported income of $3.31 billion, or $1.17 a share, on revenue of $15.9 billion. Results topped expectations of analysts surveyed by Thomson Reuters who'd pegged $1.11 a share on $15.69 billion. Shares were up $1.48, or 2.4%, at $64.14.
Elsewhere - in a few analyst actions -- Needham upped its rating for medical technology company and device maker
(SYK - Get Report)
to buy from hold with a $66 price target. That stock was trading up $1.33, or 2.3%, at $59.86.
Also, Cantor Fitzgerald significantly upped its price target for
(SQNM - Get Report)
, which is developing a non-invasive prenatal test for Down syndrome to $42 from $29. Shares added 34 cents, or 1.8%, to $19.76.
Look for earnings from
(ABT - Get Report)
St. Jude Medical
(STJ - Get Report)
before the market open on Wednesday. Analysts, on average, are expecting 77 cents a share on revenue of $7.35 billion for the third quarter from Abbott and 57 cents a share on $1.07 billion in revenue from St. Jude.
After the close on Wednesday, look for third quarter results from
. The Street expects Amylin to report a loss of 50 cents a share on $229 million in revenue.