Fears over higher US interest rates and a reduction in the Federal Reserve’s quantitative easing measures sent equity markets lower in June. Ironically, markets erased some of the earlier losses as first quarter US GDP was revised down to 1.8% growth from 2.4%. The weaker-than-expected economic growth appeased investors’ concerns that the Federal Reserve’s bond buying program would not end anytime soon. For the month, the Dow Jones Industrial Average declined 1.4%, and the S&P 500 and NASDAQ each fell 1.5%. For the first half of the year, the Dow, S&P 500 and NASDAQ are up 13.8%, 12.6%, and 12.7%, respectively.

For the first time since October 2012, all four IBO Stock Indexes declined in value for the month. The Process/Metrology/Motion Instrumentation Stock Index sustained the largest decline, falling 4.2%. The Diversified Instrumentation, Lab Consumables/Equipment and Laboratory Instrumentation Stock Indexes fell 1.4%, 1.2% and 0.4%, respectively.

Laboratory Instrumentation Stock Index

In June, the Index slipped 0.4% to close at 816.96. Ten companies improved, led by Affymetrix, which gained 19%, and eight declined. For the first half of the year, the Index has jumped 23.3%, with 14 companies trading higher and 4 declining. Pressure BioSciences maintains the largest price increase, having gained 70%. Transgenomic has declined 15% and 34% for the month and year, respectively.

Thermo Fisher Scientific announced on June 5 a $2.2 billion stock offering, with an overallotment option for $330 million, to help fund its proposed acquisition of Life Technologies (see IBO 4/15/13). The company completed the offering of 25.7 million shares at $85.50 per share on June 7 and exercised the overallotment of 3.9 million shares at the same price on June 11. On June 12, Sequenom announced the opening of its North Carolina laboratory facility, which will increase the company’s MateriT21 PLUS testing capacity by roughly 50% to more than 300,000 test samples per year. Shares rose 5.3% that day. Pressure BioSciences climbed 9.7% on June 14 as the company completed the final tranche of its private placement offering, which combined totaled for over $2 million. At the same time, the company announced the closing of a $500,000 convertible note with a private investor on June 7.

Goldman Sachs upgraded Waters on June 25 from “Neutral” to “Buy.” On the same day, ISI Group initiated Becton, Dickinson and Company with a “Buy” rating. On June 26, Maxim Group initiated coverage of Fluidigm with a “Buy” rating. On the same day, Oppenheimer initiated coverage of Cepheid with an “Outperform” rating and a $41.00 price target.

Process/Metrology/Motion Instrumentation Stock Index

The Index contracted 4.2% in June to 661.3. Three companies traded lower, and two increased in value. Veeco Instruments recorded the largest decline, falling 16%, while Nanometrics rose 2%. Year to date, the Index is up 16.8%, with all companies in positive territory, led by FEI, which has climbed 32%.

Given the company’s strong cash reserves, FEI announced on June 5 a 50% increase in its quarterly dividend to $0.12 per share. Shares traded marginally lower. On June 20, investment firm Piper Jaffray voiced concerns over future LED demand and projected Veeco’s 2014 EPS to be $1.15, which was well below the average consensus. Piper Jaffray’s price target of $28 a share for Veeco is roughly 20% below the company’s month closing price. Shares fell 4.3%.

Lab Consumables/Equipment Stock Index

The Index slid 1.2% in June to 768.48. Five companies declined, while QIAGEN and Techne advanced 7% and 4%, respectively. For the first half of the year, the Index has risen 17.2%, with six companies trading higher and Enzo Biochem down 23% and 11% for the month and year, respectively.

On June 10, Enzo Biochem widened its fiscal third quarter EPS loss by 67% to $0.15 due to lower government spending and increased legal expenses. Shares fell 3.5% the next day. On June 11, the company entered an $8.0 million revolving credit facility with Healthcare Finance Group, with an option to increase the credit agreement to $12.0 million. On June 25, Kewaunee Scientific reported a 6% earnings decline for the fiscal fourth quarter ending April 30 to $0.46 per share. However, for the fiscal year, EPS nearly tripled to $1.17 a share. Shares fell 10.2%.

Diversified Instrumentation Stock Index

In June, the Index fell 1.4% to 175.16. Five companies traded lower, two improved and Roper Industries was unchanged. Mettler-Toledo weighed on the Index, sliding 8%, while Danaher grew 2%. For the year, the Index is up 10.7%, with seven companies rising in value and Xylem down 1%. Teledyne Technologies is up 19% to lead the Index.

Agilent Technologies announced on June 18 a $600 million senior note offering, which received a “BBB+” rating and “Positive” outlook by Fitch. Shares fell 2.9% the next day. On June 24, Goldman Sachs downgraded Illinois Tool Works from “Neutral” to “Sell.”

International

In June, shares of four Pacific Region companies declined in value and shares of three improved, led by Techcomp, which gained 8%. Precision System Science declined the most for the month, falling 29%, but is up 696% for the year. For the first half of the year, six companies are in positive territory, while Techcomp in down 19%.

This month, nine European companies declined in value, and five improved. Analytik Jena had the highest return, climbing 14%. Year to date, eight companies have advanced, led by Porvair, which has gained 79%, and six are trading lower. Scientific Digital Imaging recorded the sharpest decline for both the month and year, having fallen 38% and 25%, respectively.

On June 11, Oxford Instruments announced that full-year adjusted EPS ending March 31 grew 11% to £0.68 ($1.08). Yet shares fell 6.6% the next day. On June 13, Halma reported that adjusted EPS grew 7% for the same fiscal year to £0.26 ($0.42). The company also raised its annual dividend by 7% to £0.10 ($0.17). Shares rose 2.5% the next day. On June 23, Porvair reported a 23% increase in EPS for the six months ending May 31 to £0.05 ($0.08). Yet shares fell 4.2% due to the general market sell-off. Scientific Digital Imaging announced on June 21 that it conditionally raised £850,000 ($1.3 million) through a stock offering of 4.8 million shares to repay a £379,000 ($0.6 million) outstanding convertible loan stock due in July. However, the transaction is contingent upon shareholder approval.