Intel, Yahoo Beat The Street

Intel and Yahoo posted better than expected results after the close on Tuesday, but both companies also offered fourth-quarter guidance that left room for disappointment.

Intel’s third-quarter earnings of 34 cents a share appeared to beat analysts’ estimates by a penny, but a two-cent charge for a legal settlement had some wondering if the company missed estimates by a penny. Sales rose 18% to $9.96 billion, ahead of $9.92 billion forecasts.

The company said demand was strong across the board, but added that it is still having trouble meeting all that demand. The company’s gross margins came in at 59.7%, and Intel projected fourth-quarter gross margins of 63%.

However, the company’s fourth-quarter sales guidance of $10.2-$10.8 billion left room for disappointing Wall Street’s $10.67 billion forecast. Shares of Intel fell 3% in after-hours trading.

Yahoo’s earnings of 16 cents a share beat estimates by two cents, and sales after traffic acquisition costs of $932 million were up 42% from the year-ago quarter and comfortably ahead of $918 million forecasts. The company’s fourth-quarter net revenue guidance of $1.03-$1.08 billion skewed toward the bottom of the $1.06 billion consensus estimate, but the stock edged higher after hours.

Also after the close, Motorola beat earnings and sales estimates and raised fourth-quarter revenue guidance.

Stocks tumbled during the day on a stronger than expected wholesale inflation reading, even as traders got a break from lower oil prices as the latest hurricane veered away from the Gulf Coast. Strong earnings from the likes of IBM and 3M didn’t help much either.

The Nasdaq fell 14 to 2056, the S&P 500 lost 12 to 1178, and the Dow fell 63 to 10,285. Volume rose to 2.2 billion shares on the NYSE, and 1.5 billion on the Nasdaq. Decliners led 23-9 on the NYSE, and 20-9 on the Nasdaq. Downside volume was 80% on the NYSE, and 70% on the Nasdaq. New highs-new lows were 26-161 on the NYSE, and 47-97 on the Nasdaq.

IBM and Rambus rose on better than expected results.

Novellus fell 12% after missing earnings estimates, while Adtran and CDW fell despite beating estimates. Open Solutions declined 10% on a warning.

Blackboard surged 15% on a joint development agreement with Microsoft .