The US equity markets rallied on the final trading day of March as the Federal Reserve stated a further commitment to support economic growth. Earlier in the month, the Fed reduced its monthly bond purchases by another $10 billion to $55 billion as expected, but instigated concerns over rising interest rates after eliminating the unemployment rate threshold from its policy criteria to determine rates. In addition, the Fed lowered the upper range of its 2014 GDP growth forecast by 20 basis points to 2.8%–3.0%. Investors also grappled with other weighty headlines, including soft manufacturing data and the seceding of Crimea from Ukraine. For the month, the Dow Jones Industrial Average and S&P 500 improved 0.8% and 0.7%, respectively, while the NASDAQ fell 2.5%. For the first quarter, the S&P 500 and NASDAQ are up 1.3% and 0.5%, respectively. The Dow is down 0.7%.

Following strong gains in February, the IBO Stock Indexes were mixed this month. The Laboratory Instrumentation and Diversified Instrumentation Stock Indexes fell 1.3% and 2.2%, respectively. The Process/Metrology/Motion Instrumentation and Lab Consumables/Equipment Stock Indexes were roughly unchanged.

Laboratory Instrumentation Stock Index

The Index contracted 1.3% in March but has gained 7.9% for the first quarter to close at 1,052.34. A majority of companies in the Index declined this month, led by Pacific Biosciences, which fell 20%. Illumina and Thermo Fisher Scientific also weighed on the Index, sliding 13% and 3%, respectively, due to profit taking and valuation concerns.

Nonetheless, both companies received further price endorsements. Illumina’s price target was raised by JMP Securities on March 5 from $167 to $215 and by Cowen and Company on March 12 from $190 to $195. On March 21, Goldman Sachs upgraded Thermo from “Neutral” to “Buy” and raised its price target 11% to $142 per share.

Both MOCON and Transgenomic, which declined 1% and 17% for the month, respectively, traded lower after reporting fourth quarter 2013 results. On March 12, MOCON reported that fourth quarter 2013 EPS fell 47% to $0.08 due to quality issues with one of its suppliers, which resulted in delayed orders and higher warranty costs. Shares traded slightly lower. On the same day, Transgenomic reported a smaller-than-expected fourth quarter 2013 EPS loss of $0.05. Yet shares fell 5.3% the next day. However, shares soared 19.8% on March 6, as the company raised gross proceeds of $7 million through a 1.4 million convertible preferred stock purchase agreement with investment firm Third Security.

The thinly traded company Pressure BioSciences recorded the strongest price gain for the month, climbing 22%. Shares jumped 7.7% on March 19 after the company announced the release and first sale of its new automated ultra-high pressure HUB880 system.

On March 26, Dassault Systèmes announced that it has extended its tender offer for Accelrys (see IBO 1/31/14) until April 8 due to an ongoing review by the Committee on Foreign Investment in the US. As of March 25, roughly 75% of the outstanding shares had been tendered.

Process/Metrology/Motion Instrumentation Stock Index

Despite a slight decline for the month, the Index has advanced 8.2% for the year to close at 835.51. Veeco Instruments led the Index for both the month and year, having climbed 6% and 27%, respectively. The company was upgraded by UBS on March 10 from “Neutral” to Buy,” and by CLSA on March 28 from “Outperform” to “Buy.” However, DA Davidson downgraded the company on March 17 from “Buy” to “Neutral.”

Lab Consumables/Equipment Stock Index

The Index, which was roughly unchanged for the month and year, closed at 905.98. Enzo Biochem recorded the strongest price gain in March, rising 12%. The company reported on March 11 that EPS loss narrowed 36% to $0.09 for the fiscal second quarter 2014 ending January 31, which was in line with expectations. Shares rose 1.3% the next day.

Two other companies in the Index announced results this month. On March 4, Kewaunee Scientific reported that EPS for fiscal third quarter ending January 31 grew 5% to $0.22. The company expects similar or slightly better earnings growth for the fiscal fourth quarter. Shares fell 2.3% the next day. On March 10, Cellular Dynamics International reported that fourth quarter 2013 sales grew 41.3%, but EPS loss was wider than projected at $0.43 per share. Shares contracted 4.3% the next day.

Diversified Instrumentation Stock Index

The Index dropped 2.2% for the month to close at 210.72, with all companies trading lower. For the first quarter, the Index is down 2.4%. Only Teledyne Technologies and Xylem have positive returns for the year, having risen 6% and 5%, respectively.

International

Stock prices for a majority of the Pacific Region companies in the IBO stock table declined for the month due to continued market volatility. The Nikkei 225 was roughly unchanged in March but is down 9.0% for the year. Japan’s fourth quarter 2013 GDP growth was lowered 10 basis points to 0.2% for an annualized rate of 0.7%.

European companies in the IBO stock table fared slightly better in March, with the exception of the UK-based companies as the London FTSE 100 fell 3.1%. Abcam experienced the sharpest decline, falling 21%. On March 4, the company slumped 11.9% after it reported slower-than-expected sales growth and adjusted EPS of £0.09 ($0.14) for the six months ending December 31, 2013. The company also reduced its dividend plans as a result of further operational investments. The interim dividend is expected to be 2.13 pence ($0.03) per share instead of 4.50 ($0.07) pence per share as calculated using the previous dividend policy to distribute 40% of adjusted post-tax profit. On the same day, the company was downgraded by Numis Securities to “Hold” from “Add,” and by N+1 to “Sell” from “Hold.” Numis Securities lowered its price target by 9% to £5.10 ($8.53), while N+1 set a price target of £4.45 ($7.45).

Conversely, Spectris was upgraded by Liberum Capital on March 19 from “Hold” to “Buy.” The investment firm raised its price target by 19% to £25.50 ($42.40). Despite the upgrade, Spectris contracted 6% for the month.

Among other European companies, on March 3, Sartorius reported that fourth quarter 2013 sales grew 12%. However, adjusted EPS slipped 3% to €1.49 ($2.04) due to increased investments. The company raised its full-year 2013 dividend by 6% to €1.00 ($1.08) and projected 2014 EBITDA margin to improve 50 basis points to 20% of sales. Shares traded slightly higher the next day. Tecan reported on March 11 that full-year 2013 EPS expanded 6.5% to CHF 4.11 ($4.42) but primarily due to lower operating expenses. Shares fell 4.2%.