In November, the Dow Jones Industrial Average reached a new two-year high of 11,406.84 following the US Federal Reserve’s $600 billion stimulus plan. Economic data continued to improve and included strong corporate earnings, rising consumer confidence and subdued inflation. On November 23, third-quarter US GDP growth was revised upward to 2.5%, compared with the previous estimate of 2.0%, due to higher consumer spending, exports and government spending. Despite this, the Fed lowered its 2011 US economic growth forecast to 3.0%–3.6% from 3.5%–4.2%, citing unemployment, housing and manufacturing data. In addition, European debt concerns and Korean tensions caused markets to contract from earlier highs. As a result, the Dow, S&P 500 and NASDAQ ended the month down 1.0%, 0.2% and 0.4%, respectively. Year to date, the Dow, S&P 500 and NASDAQ have gained 5.5%, 5.9% and 10.1%, respectively.

All IBO Stock Indexes sustained momentum despite negative market pressure. The Process/Metrology/Motion Instrumentation Stock Index gained the most, climbing 9.0%. The Diversified Instrumentation, Laboratory Instrumentation and Lab Consumables/Equipment Stock Indexes gained 1.9%, 1.7% and 2.4%, respectively.

Laboratory Instrumentation Stock Index

OI was removed from the Index following the acquisition by ITT on November 19 (see IBO 9/15/10). Pacific Biosciences was added following its IPO (see IBO 10/31/10). For the month, the Laboratory Instrumentation Index grew 1.7% to close at 589.00. Twelve companies improved, and nine fell. Transgenomic led the Index, advancing 35%. Helicos BioSciences slumped 67% and 84% for the month and year, respectively. Year to date, the Index has improved 4.1%, with 14 companies trading higher and seven losing ground. Caliper Life Sciences continues to lead the Index, up 131%.

A number of companies in the Index reported strong quarterly earnings. Bio-Rad Laboratories announced on November 2 EPS of $1.59, $0.38 above expectations, leading shares up 1.7% the following day. The company slightly lowered its full-year revenue growth to 4%–5% organically due to revised Biotest sales. Becton Dickinson announced on November 3 fiscal fourth-quarter EPS of $1.24 (see page 12), in line with expectations, and raised its fiscal 2011 outlook by more than 1% to $5.45–$5.55. Shares climbed 3.6% the following day. On November 23, the company raised its annual dividend by 10.8% to $0.41 per share. Shares slipped 1.3%. Also on November 3, MOCON announced EPS of $0.19, compared with $0.16 a year ago, yet shares slipped 1.1%.

On November 4, PerkinElmer and Sequenom reported better-than-expected EPS. PerkinElmer announced EPS of $0.31, $0.02 better than estimates, and raised its 2010 EPS outlook by 3% to $1.29–$1.31. Nonetheless, shares traded modestly lower the following day. Sequenom reported a loss of $0.21 a share (see page 12), $0.02 narrower than consensus, leading shares up 7.5% the following day. SDIX reported on November 8 break-even EPS, compared with a loss of $0.01 a year ago, yet shares were unchanged. The following day, X-Rite reported break-even EPS, compared with a loss of $0.12 a year ago, leading shares up 3.6%.

Other Index companies missed earnings expectations. Harvard Bioscience announced on November 3 EPS of $0.08, $0.01 below estimates, yet shares rose 2.3%. On November 4, Dionex reported fiscal first-quarter EPS of $0.62, $0.01 below consensus, but raised its fiscal full-year EPS outlook by 3% to $3.66–$3.76. Shares were unchanged. Accelrys reported fiscal first-quarter EPS of $0.10, compared with $0.12 a year ago, and projected EPS of $0.07–$0.08 for the fiscal second quarter. Shares rose 1.1% the next day.

There were also some companies that disappointed investors. Luminex reported on November 4 a loss of $0.02 a share, $0.06 below estimates, and lowered the upper range of its 2010 revenue forecast by 5% to $138–$140 million. Shares fell 9.1% the following day. The company reported on November 17 a $21 million share repurchase plan, yet shares were unchanged. On November 15, Transgenomic doubled its loss to $0.02 a share, leading shares down 9.6% the following day. Helicos BioSciences reported on November 19 a loss of $0.11 a share, similar to the previous year (see page 12). Shares slumped 44.4%. Earlier in the month, on November 16, the company was delisted from the NASDAQ stock market and began trading on the OTC Markets (see page 2), leading shares down 45.6%.

In other news, on November 16, Canaccord Genuity initiated coverage of Cepheid with a “Buy” rating. It also initiated coverage of Becton Dickinson and Beckman Coulter each with a “Hold” recommendation.

Process/Metrology/Motion Instrumentation Stock Index

The Process/Metrology/Motion Instrumentation Stock Index jumped 9.0% in November to 439.09. Five companies grew in positive territory, RAE Systems was flat and Nanometrics fell 12%. MTS Systems led the Index higher, climbing 17%. Year to date, the Index is up 19.1%, with all seven companies gaining in value, led by Zygo, which has gained 70%.

Nanometrics reported on November 2 EPS of $0.53, $0.02 lower than consensus, leading shares down 11.0% the following day. On November 29, the company announced a $10 million share repurchase program, leading shares up 3.2% the following day. Also on November 2, FEI Company reported EPS of $0.31 (see page 12), $0.06 ahead of consensus, and projected fourth-quarter EPS of $0.36–$0.41. Shares jumped 10.4% the next day. RAE Systems announced on November 3 EPS of $0.02, compared with breakeven a year ago, yet shares were unchanged. On November 18, MTS Systems reported fiscal fourth-quarter EPS of $0.54, $0.11 ahead of expectations, leading shares up 3.5% the following day. On November 30, the company raised its dividend by 33% to $0.20 per share. Shares slipped 0.6%.

Lab Consumables/Equipment Stock Index

This month, the Laboratory Consumables/Equipment Stock Index improved 0.5% to 578.17, with three companies trading higher and four losing ground. Kewaunee Scientific recorded the largest gain, climbing 11%, while QIAGEN slipped 3%. For the year, the Index has increased 15.4%, with four companies in negative territory and Sigma-Aldrich and Pall each up 25%. Enzo Biochem has declined the most, falling 18%. On November 8, QIAGEN reported EPS of $0.24, $0.01 ahead of consensus, but narrowed its full-year EPS range from $0.90–$0.96 to $0.91–$0.92. Shares declined 1.0% the following day.

Diversified Instrumentation Stock Index

The Diversified Instrumentation Stock Index gained 1.9% in November to 121.86. Four companies improved, and two declined. Mettler-Toledo recorded the largest increase, up 11%, while Teledyne Technologies fell 3%. Year to date, the Index is up 19.8%, with all companies in positive territory. AMETEK increased the most, gaining 55%.

Mettler-Toledo reported on November 4 EPS of $1.71, $0.15 better than consensus, and raised its full-year EPS outlook by 4% to $6.62–$6.67. Shares rose 3.9% the following day. Fourth-quarter EPS are expected to be $2.25–$2.30. AMETEK declared on November 3 a three-for-two stock split, payable December 21, and a 50% dividend increase to $0.06 per share on a post-split basis. Shares traded marginally higher. On November 11, Longbow downgraded the company to “Neutral” from “Buy.” Agilent reported on November 12 fiscal fourth-quarter EPS of $0.65, $0.05 ahead of consensus, and projected fiscal first-quarter EPS 6% above analysts’ consensus to $0.55–$0.57. Shares rose 1.8%.

International

This month, four Pacific Region companies traded higher, led by JEOL, which gained 20%, while Techcomp contracted 4%. For the year, two companies are in positive territory, while three have negative returns. Techcomp leads all Pacific Region companies, up 30%. JEOL has lost 18%.

On November 8, Horiba reported third-quarter EPS of ¥47.25 ($0.55), compared with ¥6.27 ($0.07) a share a year ago, and raised its full-year EPS forecast by 12% to ¥137.15 ($1.60). Shares climbed 15.1% for the two days ending November 9. The following day, Shimadzu reported a more than threefold increase in fiscal second-quarter net income to ¥3,128 million ($36.5 million), sending shares up 3.7%.

In November, six European companies improved, two were unchanged and six declined. Datacolor led all companies, improving 24%. Alpha MOS fell 15%. For the year, eight companies are in positive territory, and six have negative returns. Oxford Instruments has the largest return, up 188%. Robotic Technology Systems is down 19%.

Biohit reported on November 5 a third-quarter loss of €0.04 ($0.05) a share, compared with a loss of €0.01 ($0.01) a year ago. Shares traded slightly higher. On the same day, Datacolor announced preliminary fiscal 2010 profit growth of 80.8% to CHF 4.7 million ($4.4 million), leading shares up 5.2%. On November 30, the company reported EPS of CHF 30.19 ($5.40), compared with a loss of CHF 18.55 ($3.40) last year, and raised its annual dividend by 300% to CHF 12.00 ($2.10) a share. Shares jumped 9.2%.

On November 12, Spectris reported that revenue grew 21%, 16% organically, for the four months ending October 31. Shares climbed 5.2%. On November 22, Analytik Jena reported preliminary fiscal 2010 EPS of €0.34 ($0.46), compared with €0.11 ($0.15) a year ago. However, the previous year’s EPS was restated from €0.51 ($0.69) due to a tax audit and reclassification of currency translations. The company proposed a dividend of €0.15 ($0.19) per share for the first time, yet shares fell 8.4%. On November 16, Oxford Instruments reported fiscal half-year EPS of £0.17 ($0.26) (see page 12), compared with £0.04 ($0.07), leading shares up 4.4%.