IBD's Top 10 - Tuesday

• Investor's Business Daily
• On 6:44 pm EDT, Tuesday October 13, 2009

Intel's Q3 EPS, Sales Beat Views

1 The chip giant said after hours that EPS fell 6% to 33 cents, a nickel over views. Sales slid 8% to $9.4 bil, above estimates. The gross margin also beat forecasts. Intel cited recovering demand for PCs and said back-to-school sales exceeded its goals. It sees Q4 sales of $9.7 bil-$10.5 bil. Analysts see $9.5 bil. Intel rose late -- as did several other notable tech firms.

Health Overhaul Clears Hurdle

2 The Dem-led Senate Finance Committee passed a sweeping $829 bil, 10-year plan to reshape the health care system. The vote was 14-9, with GOP Maine Sen. Olympia Snowe the only senator to break party ranks. Sen. Chuck Grassley, R-Iowa, derided the move as the first step toward gov't control of health care. The measure must now be merged with a more liberal Senate plan.

Poll Backs Afghan Troop Surge

3 Of the Americans polled, 48% favor sending more troops/resources to Afghanistan vs. 41% opposed, according to the latest IBD/TIPP survey. In Sept., Americans were opposed 55%-35%. The U.S. commander there has urged a big surge in troops, but Pres. Obama is taking a lengthy time mulling his next move.

Russia: Nyet To Iran Sanctions?

4 After meeting with Sec'y of State Hillary Clinton in Moscow, Russia's foreign minister said threatening sanctions vs. Iran would be "counterproductive," a setback to the Obama administration's desire for a united front. Russia in Sept. hinted it might back sanctions after Obama scrapped a proposed E. European missile defense system and Iran disclosed a secret nuclear facility.

Economic Pessimism Returns

5 The IBD/TIPP Economic Optimism Index fell 7.2% in Oct. to 48.7, ending a 2-month pop above the neutral 50. Though GDP growth likely resumed in Q3, still-rising unemployment is taking a toll on sentiment. Support for federal economic policies tumbled nearly 10% to 42.1, reflecting concerns about the $787 bil stimulus bill and the size of federal deficits.

Stocks Generally Fall Modestly

6 The major averages marked time ahead of big earnings later in the week for techs and financials, including Intel late Tue. The S&P 500 fell 0.3%, hurt by weak J&J sales and a Goldman Sachs downgrade. The NYSE composite also fell 0.3%; the Dow lost 0.1%. The Nasdaq's fractional gain erased Mon.'s fractional loss. Volume climbed across the board.

CSX Profit Tops, 'Worst Is Over'

7 The No. 3 U.S. railroad's Q3 EPS fell 21.3% to 74 cents ex items, topping views by 3 cents. CSX said the worst of the recession is likely over. Cost cuts and price hikes helped boost profit. Revenue fell 23% to $2.3 bil, in line with views, as freight volume fell 15%. Shares rose 2% late, more than offsetting a 1% drop in regular trading.

J&J Falls As Q3 Sales Disappoint

8 The health care giant's EPS rose 3% to $1.20, beating views by 7 cents. Sales slid 5% to $15.1 bil, below views. Cost cuts and lower taxes helped Johnson & Johnson , but generic drug rivals and lower spending on medical gear hurt. U.S. drug sales sank 19%. J&J implied Q4 EPS of 93-98 cents vs. views of 98 cents. Shares fell 2%.

Crude, Gold Sail As Dollar Dives

9 The dollar unraveled further, marking an 14-month intraday low vs. a parcel of rival currencies. Dec. gold rose $7.50 to $1,065 an ounce after setting another record at $1,069.70. Nov. crude added 88 cents to $74.15, its first close above $74 since mid-Aug. Cutting against the grain, copper fell 2% and natural gas 6%.

Cisco Buys Starent For $2.9 Bil

10 Cisco will pay $35 a share cash for Starent , a maker of gear that lets wireless carriers tie their networks to the Web. Analysts see the deal filling a gap in Cisco's product line. The networking giant recently agreed to buy videoconferencing firm Tandberg for $3 bil. Starent rose 17% to 33.91. Cisco edged up. On the deal, Akamai and Ceragon rose 3%.

Buzz up!