Stocks Close Mixed, Then Intel Surprises

(Updated with CSX, Intel earnings.)

NEW YORK (TheStreet) -- Intel(INTC) handily beat expectations after the major averages pared losses to close mixed Tuesday.

The chipmaker said earnings per share fell by 2 cents year over year to 33 cents a share, topping expectations for 28 cents a share. Revenue came in at $9.4 billion, down from $10.2 billion the year prior but topping expectations for $9 billion. For the fourth quarter, Intel forecast revenue of $10.1 billion.

Stock Wrap: October 13

The Dow Jones Industrial Average, which had been down as much as 60 points earlier in the session, ultimately lost 14.74 points, or 0.2%, to 9871.06. The S&P 500 slid 3.01 points, or 0.3%, to 1073.18, and the Nasdaq Composite was up 0.75 points, or 0.04%, to 2131.89.

CSX(CSX) also topped profit expectations after the close on revenue in line with expectations, sending shares more than 3% higher in after-hours trading. The transportation services company reported earning 74 cents a share on revenue that fell 23% year over year, to $2.3 billion, due primarily to a 15% decline in volume and lower fuel surcharge recovery.

"The third quarter reinforces our view that the worst of the recession is likely behind us," said Michael Ward, chairman and CEO of CSX. "At the same time, our coal business will be impacted by weak demand well into 2010."

Stocks traded generally lower most of the day after Johnson & Johnson topped profit expectations and year-ago results, but came in shy on sales. J&J reported third-quarter earnings of $3.35 billion, or $1.20 a share, as sales fell 5%. Shares traded down 2.4% to $61.01.

"They missed on their revenue numbers, and as we all know, revenue numbers are going to be very important this earnings season," says Ryan Detrick, senior technical strategist at Schaeffer's Investment Research.

"We know most companies are probably going to be beating estimates, maybe even by as wide a margin as we saw last quarter -- but that has to do with cost-cutting, and you can't cut your way to growth," says Jeffrey Kleintop, chief market strategist at LPL Financial.

"We think we got GDP to turn positive in the third quarter; now we need to see that show through on the revenue line with S&P 500 companies," says Kleintop. "Unfortunately, we didn't see it with J&J, but we have seen it with some of the others that have reported, like Alcoa(AA) and Costco(COST)." Click below to hear my entire interview with Kleintop, including his thoughts on J&J, Goldman, bank earnings, the dollar, and "Dow 10K."