The US dollar continued to slide in November reaching a 15-month low against the euro. Other factors influencing the markets were better than expected US home sales and a decline in unemployment claims. However, consumer confidence levels and manufacturing activity declined this month. In addition, on November 24, the US Commerce Department revised downward the third-quarter GDP from an annualized rate of 3.5% to 2.8%. The following day, the Dow, S&P 500 and NASDAQ declined 1.5%, 2.1% and 1.7%, respectively. Nevertheless, the US markets proved resilient, as the Dow, S&P 500 and NASDAQ climbed higher the following trading day to end the month up 6.5%, 5.7% and 4.9%, respectively. Year to date, the Dow, S&P 500 and NASDAQ have gained 17.9%, 21.3% and 36.0%, respectively.

All four IBO Stock Indexes finished the month in positive territory. The Diversified Instrumentation Stock Index experienced the largest growth, climbing 6.8%, while the Lab Consumables/Equipment, Process/Metrology/Motion Instrumentation and the Laboratory Instrumentation Stock Indexes gained 3.7%, 3.5% and 2.4%, respectively.

Laboratory Instrumentation Stock Index

For the month, the Laboratory Instrumentation Index climbed 2.4% to close at 548.41. Twelve companies declined, and 10 improved. Sequenom led the Index, advancing 49%, while Symyx Technologies dropped 28%. Year to date, the Index has improved 40.5%, with 17 companies trading higher and five losing ground. Helicos Biosciences shows the largest gain, up 290%, while Sequenom is down 79%.

This month, a number of Index companies were rewarded for beating expectations. On November 3, Bio-Rad Laboratories announced EPS of $1.38, $0.35 above expectations, leading shares up 4.3% the following day. Harvard Bioscience announced EPS growth of 33% on November 4 to $0.08 (see page 12) and raised the bottom range of its 2009 EPS forecast by $0.01 to $0.28–$0.31, yet shares traded only modestly higher the following day. On November 5, Transgenomic reported a loss of $0.01 a share, similar to last year, but rose 9.4% the following day. Caliper Life Sciences reported a loss of $0.01 a share on November 9 (see page 12), $0.06 less than expected, and raised the lower range of its full-year revenue guidance by 1% to $127–$129 million. Shares soared 16.3%. On the same day, Sequenom announced a loss of $0.24 a share (see page 12), $0.04 better than expected, leading shares up 1.8% the following day. OI Corporation jumped 7.0% on November 12, as it reported EPS growth of 50% to $0.09 (see page 12). On November 17, Starlims reported EPS of $0.22 (see page 12), compared to $0.01 a year ago, sending shares up 4.5%.

Other firms fared less well with investors. On November 4, Varian announced fiscal fourth-quarter EPS of $0.40, $0.29 below expectations, yet shares declined less than 1%. On the same day, MOCON traded modestly lower after announcing EPS of $0.16, compared to $0.19 a year ago. Also on November 4, Luminex reported a loss of $0.01 a share, $0.08 below expectations, and lowered its full-year revenue guidance by roughly 2% to $118–$132 million. Shares fell 8.2% the following day. On November 11, X-Rite reported a loss of $0.12 a share, compared to a loss of $0.53 a year ago, yet shares fell 5.7%.

In other news, Illumina fell 16.7% in the week ending November 20 with little news other than a price cut by Auriga to $39 from $44. Shares recovered 2.5% on November 25, as the company approved a stock buyback of up to $100 million. On November 13, Thermo Fisher Scientific refinanced a portion of its debt by selling $750 million of notes through a private placement, leading shares slightly higher. On November 24, Sequenom soared 39.4% amidst renewed takeover speculation.

On November 4, Deutsche Securities upgraded Affymetrix to “Hold” from “Sell.” On November 6, Jefferies & Company initiated coverage of Bio-Rad and Thermo Fisher with a “Buy” and “Hold” rating, respectively. William Blair initiated coverage of Luminex on November 18 with a “Market Perform” rating.

Process/Metrology/Motion Instrumentation Stock Index

The Process/Metrology/Motion Instrumentation Stock Index climbed 3.5% in November to 325.15. Three companies improved and five traded lower, led by Strategic Diagnostics, which fell 20%. Year to date, the Index is up 34.4%, with five companies gaining and three in negative territory. ICx Technologies has lost the most ground, falling 37%, while Nanometrics leads the Index for both the month and year, climbing 32% and 849%, respectively.

On November 3, FEI Company reported EPS of $0.17 (see page 12), $0.05 ahead of consensus, and projected fourth-quarter earnings of $0.16–$0.21 a share. Shares climbed 6.4% the following day. On November 4, RAE Systems announced break-even EPS, in line with expectations, but lowered its full-year revenue forecast by 4% to $80–$82 million and projected a loss for the year. Shares declined 2.5% the following day. On November 12, ICx reported a loss of $0.11 (see page 12), $0.04 wider than expected, and lowered its full-year revenue outlook by 5% to $180–$190 million. Shares declined 5.1% the following day. On November 19, MTS Systems announced fiscal fourth-quarter EPS of $0.20 (see page 12), $0.01 ahead of expectations, yet shares declined 6.1% the following day. On November 3, Veeco Instruments completed its public offering of 5.75 million shares at a price of $23.75 for net proceeds of $130.1 million.

Lab Consumables/Equipment Stock Index

This month, the Laboratory Consumables/Equipment Stock Index grew 3.7% to 487.68, with seven companies in positive territory and Enzo Biochem down 6%. Techne recorded the largest gain, climbing 9%. For the year, the Index is up 33.8%, with all companies trading higher, led by Life Technologies, which has improved 114%. On November 5, Millipore announced EPS of $0.95, $0.02 ahead of expectations, yet shares slipped 1.6% the following day. On November 9, QIAGEN reported EPS of $0.26, $0.01 better than consensus, and increased the bottom range of its full-year EPS guidance by 2% to $0.88–$0.90, leading shares up 3.3% the following day. On November 18, Pall reported a 5.4% decline in fiscal first-quarter revenues (see page 12), leading shares down 3.0%. On November 6, Jefferies & Company initiated coverage of Millipore and Life Technologies each with a “Buy” rating, while initiating coverage of Sigma-Aldrich with a “Hold” rating.

Diversified Instrumentation Stock Index

The Diversified Instrumentation Stock Index gained 6.8% in November to 95.83. Year to date, the Index is up 36.0%. For both the month and year, five companies improved, led by Agilent Technologies, which climbed 17% and 85%, respectively, while Teledyne Technologies declined 2% and 25%, respectively. On November 6, Jefferies & Company initiated coverage of Agilent with a “Buy” rating. Agilent announced fiscal fourth-quarter EPS of $0.32 on November 13, $0.09 ahead of expectations, and forecasted first-quarter EPS of $0.28–$0.32, $0.03 above analysts’ consensus. Shares climbed 4.3%. On November 23, Roper Industries increased its dividend by 15% to 9.5 cents, leading shares up 1.3%.

International

This month, all five Pacific Region companies traded lower, led by Techcomp, which fell 16%. For the year, three companies are higher, but two are down. Horiba is up 62%, while Shimadzu has dropped 3%. On November 4, Horiba reported quarterly EPS of ¥6.27 ($0.07), compared to ¥51.14 ($0.48) a share a year ago. Despite increasing its full-year EPS forecast by roughly 25% to ¥33.11 ($0.35), shares fell 10.0%

Nine European companies declined, five improved and Alpha MOS traded flat. Biohit led all firms, up 13%, while Exiqon fell 22%. For the year, 12 European firms show gains, and three are down. Tecan maintains the largest gain, up 77%. Millbrook Scientific Instruments is down 77% and delisted during the month (see page 2). On November 6, Biohit reported a quarterly loss of €0.01 ($0.01) a share, compared to EPS of €0.04 ($0.06) a year ago. Shares declined 1.3%. On November 18, Oxford Instruments announced half-year EPS of £0.04 ($0.07), compared to £0.03 ($0.06) a year ago.

Chart: IBO Instrument Industry Stock Index

Lab Instrument Stock Index S&P 500

Nov-07 654.48 355.11

Dec-07 656.46 352.05

Jan-08 583.13 330.52

Feb-08 607.77 319.03

Mar-08 600.29 317.13

Apr-08 600.29 332.20

May-08 622.99 335.75

Jun-08 602.24 306.89

Jul-08 639.07 303.86

Aug-08 643.46 307.57

Sep-08 590.45 279.64

Oct-08 456.82 232.26

Nov-08 416.63 214.88

Dec-08 390.29 216.56

Jan-09 397.41 198.01

Feb-09 376.99 176.24

Mar-09 393.81 191.29

Apr-09 428.75 209.26

May-09 446.23 220.37

Jun-09 479.85 220.41

Jul-09 522.15 236.75

Aug-09 528.47 244.70

Sep-09 543.19 253.44

Oct-09 535.42 248.43

Nov-09 548.41 262.68