Medtronic Drags Healthcare ETFs

Healthcare stocks are trading lower after market leader Medtronic reported a decline in sales in the fiscal first-quarter and lowered its outlook for revenue and earnings for the year through next April
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NEW YORK (

TheStreet

) -- Weak existing-home sales data and worse-than-expected results from

Barnes & Noble

(BKS) - Get Report

and

Medtronic

(MDT) - Get Report

contributed to broad market weakness that is weighing on healthcare ETFs.

Healthcare stocks are trading lower after market leader Medtronic reported a decline in sales in the fiscal first-quarter and lowered its outlook for revenue and earnings for the year through next April. The

iShares Dow Jones US Medical Devices

(IHI) - Get Report

, which has a 13.3% stake in Medtronic, is down 3.3%. Other top holdings in the fund including

Thermo Fisher Scientific

(TMO) - Get Report

and

Stryker

(SYK) - Get Report

were also weaker. The

PowerShares S&P SmallCap Health Care ETF

(XLVS)

and

Health Care Select Sector SPDR

(XLV) - Get Report

were declining by 0.9% and 1.8% respectively.

The 27% plunge in existing home sales data led to a selloff in the

SPDR KBW Mortgage Finance ETF

(KME)

shedding 3.8%. The Homebuilder ETFs remarkably remained in the positive territory with the

SPDR Homebuilders ETF

(XHB) - Get Report

rising 0.4% and the

Dow Jones Home Construction

(ITB) - Get Report

rising 1.2%.

Prominent among the gainers is the

CurrencyShares Japanese Yen Trust

(FXY) - Get Report

, which is gaining 1.2% as the Yen touched a 15-year high against the dollar.

The

iShares Silver Trust

(SLV) - Get Report

is another notable gainer in Tuesday trading, up 2.4%.

--Written by Shanthi Venkataraman in New York.

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Shanthi Venkataraman

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Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.