Monday started the week off right amid a jump in oil prices to one-year highs. The S&P 500 Index improved by 0.5%, the Dow Jones Industrial Average gained 0.5% and the Nasdaq Composite climbed 0.7%.
Here’s what you need to know for Tuesday’s trading day:
Illumina, Inc. (ILMN)
ILMN updated its third-quarter expectations, and Wall Street is flat-out pissed.
For its most recent three-month period, the developer of systems for genetic modification expects revenue to amount to $607 million, marking a 10% increase year-over-year. However, the figure is well short of Illumina’s previous outlook, which pegged revenue in a range of $625 million to $630 million. Analysts surveyed by Thomson Reuters were no doubt disappointed, too; there were looking for $628.1 million.
Illumina’s throughput sequencing instruments experienced a significant slump compared to the year-ago quarter. Q4 revenue is expected to be hampered as well.
This all conspired to send ILMN stock down nearly 25% in Tuesday’s early morning trade.
St. Jude Medical, Inc. (STJ)
STJ shares were off Tuesday morning after the company had to deliver a physician and consumer warning over its implanted heart devices.
St. Jude Medical issued a field advisory related to premature battery depletion in 0.21% of its ICD and CRT-D defibrillators. While the number is small, Jeff Fecho, Vice President of Quality Control, said two deaths have occurred in connection to the malfunction.
The affected devices were made before May 23, 2015. Patients wondering whether their device is part of the advisory can visit this St. Jude Medical site.
STJ stock was off more than 6% in premarket trade.
Seagate Technology PLC (STX)
UPDATE: While STX shares were getting a premarket bump after updating first-quarter guidance, things have taken a turn. Seagate has opened significantly lower.
Seagate Technology expects to bring in $2.8 billion for Q1 thanks to better-than-expected demand for Seagate’s high-capacity enterprise HDD products. The figure is better than the analyst estimate of $2.74 billion. It also is an upgrade from the company’s own previous guidance of at least $2.7 billion.
Seagate also brought its gross margin outlook up from at least 27% to 29%.
STX stock is down about 4% in Tuesday’s premarket action, which puts a pause on a monster run of about 65% off the shares’ June lows. The stock still is trading well above all of its major moving averages, though the selloff has cut down the stock’s Relative Strength Index (RSI) reading.