Health stocks were down - as were the broader markets - amid the kickoff of third-quarter results.

The NASDAQ and Amex biotechnology indices were down 1.1% and 1.7%, respectively. Big biotech Amgen ( AMGN) and Biogen ( BIIB) 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, Eli Lilly ( LLY) said Tuesday that it has commenced the tender offer for all outstanding shares of ImClone ( IMCL) 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)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 Stryker ( SYK) 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 Sequenom ( SQNM), 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 Abbott Laboratories ( ABT)and St. Jude Medical ( STJ) 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 Amylin ( AMLN). The Street expects Amylin to report a loss of 50 cents a share on $229 million in revenue.

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