US stocks weakened on Tuesday after disappointing sales from Johnson & Johnson missed expectations.

Market breadth was negative. On the NYSE, losers beat winners four to three. On the NASDAQ, advancers topped decliners seven to five.

Financial shares were under pressure. Goldman Sachs fell 1.5% on an analyst downgrade. JPMorgan Chase, the Bank of America and Travelers Companies also declined. The Bank of America said it will waive attorney-client privilege and hand over legal documents related to its controversial merger with Merrill Lynch. The company has been under pressure from regulators for months to provide more information on the purchase.

Among notable movers in the financial sector was CIT Group, which tumbled 14% after the lender’s CEO said he would resign by the end of the year.

The NASDAQ stayed in positive territory after Cisco Systems agreed to buy Starent Networks Corp for US$2.9B. Cisco’s stock added 0.5%, whereas Starent, which makes telecommunications equipment, surged 16.8%.

Healthcare stocks slid after a key Senate committee endorsed a sweeping healthcare overhaul as it gained the support of an influential Republican. The proposal will be merged with the Senate health panel’s version and moved to the full Senate for debate in the next few weeks.

Johnson & Johnson posted weaker-than-expected quarterly revenue as sales of prescription drugs and cardiac stents disappointed. Third-quarter profit topped analyst forecasts, but that was largely because of cost cuts and lower taxes. Third-quarter revenue fell 5.3%. Earnings beat analyst estimates by 7cps, helped by lower research and marketing spending. Shares in Johnson & Johnson fell 2.4%.

Intel reported its results after close. Third-quarter net income dropped to 33cps. Analysts had expected income of 27cps. Revenue fell 8.1%, but was above expectations. Gross margin was 58% in the third quarter, compared with Intel’s initial prediction of about 53%. The company gave a better-than-expected outlook for the fourth quarter. For the fourth quarter, Intel predicted sales would be US$9.7B to $10.5B, compared with analyst estimates for US$9.5B. Intel was halted in extended trading.

Other major companies releasing results this week include JPMorgan Chase, Citigroup, Goldman Sachs, Google, Nokia and IBM.

Crude oil rose to a seven-week high in New York on speculation world energy use will grow as the economy rebounds and as a weaker dollar spurs commodity demand. The Organization of Petroleum Exporting Countries (OPEC) increased its 2010 global oil-consumption forecast on economic expansion in emerging economies. OPEC predicts that total crude consumption will increase by 700,000 barrels a day to 84.93M barrels a day next year, led by demand from emerging markets. This year, the group forecasts global demand will contract by 1.4M barrels a day to 84.24M barrels a day.

Gold futures rose in New York on concern a weakening dollar and rising inflation will enhance the appeal of precious metals.