Shares of Illumina (ILMN) were tanking in premarket trading after the San Diego-based biotech firm cut its third-quarter sales expectations to $607 million, down more than 3% from the midpoint of prior guidance.
Illumina saw about a quarter of its market cap vanish as investors took flight before the opening bell, after the company also said it expects to see a fall in sales of its sequencing instruments.
Meanwhile, St. Jude Medical (STJ) shares were also falling in premarket trading by about 4%. The Saint Paul, Minn.-based medical-device giant released a warning to patients that some batteries on its implantable defibrillators could deplete faster than expected, leaving patients "vulnerable should they need a shock from the device to restart their faltering hearts." The company added that incidents of battery depletion have been rare, occurring so far on about 0.21% of St. Jude defibrillator products.
And Alcoa (AA) shares were also down about 5% before markets opened after the aluminum producer booked quarterly earnings below Wall Street forecasts. Earnings of $0.32 a share were about 6% below analyst forecasts, while sales of $5.2 billion were more than 2% below consensus estimates. (Alcoa shares are held in Jim Cramer's Action Alerts PLUS charitable trust.)
Oil prices also slid from Tuesday highs by about 1% to $50.87 a barrel, based on U.S. benchmark West Texas Intermediate, pulling down shares of a range of oil companies from Marathon Oil (MRO) and Stressed Out watch list member Chesapeake Energy (CHK) by about 1%. According to Reuters, analysts with Goldman Sachs released a note to clients Tuesday that crude markets were unlikely to rebalance in 2017, despite a "greater possibility" of production cuts.