While the major U.S. stock indexes hit all-time highs Tuesday, health care stocks traded lower on disappointing earnings and gave back some of a post-election relief rally that had lifted the sector.
"Medtronic certainly had a pretty tough quarter and [is] driving down medical devices" stocks, said Mike Bailey, director of research and chair of FBB Capital Partners, which has a "very small" position in the stock.
He attributed Tuesday's decline in health stocks broadly to a pullback after recent gains, and some uncertainty on the effect of President-elect Donald Trump's health care policies.
Medtronic shares plunged more than 8 percent after the company reported disappointing quarterly revenue and cut earnings guidance for the fiscal year ending April 2017. The stock was the second-worst performer in the S&P 500 health care sector, followed by Endo International, a specialty pharmaceutical company.