US equity markets showed mixed results in June. Estimates for first quarter GDP were revised upwards on June 29 two-tenths of a percentage point to 1.4%. On June 14, the US Federal Reserve raised the benchmark interest rate a quarter percentage point to 1%–1.25%, the third consecutive quarterly increase and a vote of confidence in the economy. But weak growth in consumer spending and a late month decline in tech stocks curtailed overall equity growth.

In June, the S&P 500 and Dow Jones Industrial Average grew 0.5% and 1.6%, respectively, while the NASDAQ slumped 0.9%. Nonetheless, each Index has enjoyed a strong first half, up 8.2%, 8% and 14.1%, respectively. Both the S&P 500 and Dow Jones have posted their strongest first-half performances since 2013.

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Laboratory Instruments and Products Stock Index

In line with the main market indexes, the Index rose 1.2% for the month, with 13 of the 20 companies posting gains, led by Enzo Biochem. For the year, the Index has increased a strong 26.3%, with Enzo Biochem again posting the largest gain. Fluidigm has recorded the largest decline, falling 44.5%.

On June 8, Enzo Biochem reported roughly flat adjusted EPS for the fiscal third quarter ending April 30, which was ahead of analysts’ consensus. Despite weak Life Sciences sales due to timing of orders and slower demand from industrial and academic customers, top line growth benefited from strength in the Clinical Labs segments. The company also highlighted specific molecular diagnostic product developments and a new in-network partnership with a major insurance provider.

On June 20, Kewaunee Scientific reported an increase in fiscal fourth quarter and fiscal year adjusted EPS. Fiscal year-end adjusted EPS gained double digits due to strong domestic sales growth (see Bottom Line).

Looking to boost depleting cash reserves and help manage working capital, both NanoString Technologies and Pacific Biosciences announced new public common stock offerings this month. NanoString tumbled 9.2% on June 1 after pricing its 3.0 million common share offering at $16.75, including an underwriter option to purchase up to an additional 450,000 shares. The offering closed on June 6 with a full exercise of additional shares, resulting in net proceeds of roughly $56.5 million.

Pacific Biosciences priced a 15.4 million common stock offering at $3.10 on June 14, yet shares declined a modest 1.2%. The offering included an underwriter option to purchase up to an additional 2.3 million shares.

In the news, PerkinElmer jumped 4.6% on June 19 following the announcement of the acquisition of EUROIMMUN (see Executive Briefing). Shares ended the month up 8.1%.

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Diversified Instrumentation Stock Index

The Index inched up 0.9% in June and is up 16.2% for the year. During the month, 5 of the 8 shares recorded gains, led by Xylem.

On June 20, Danaher announced €250 million ($281million at €0.89 = $1) and €600 million ($674 million) offerings of Euro-denominated senior notes due 2022 and 2027, respectively. Net proceeds are expected to total €845 million ($949 million), and will be used to repay outstanding debt and for corporate purposes.

On June 1, Goldman Sachs upgraded Illinois Tool Works from “Sell” to “Buy,” and raised its price target from $131 to $155 per share. On June 7, Janney Montgomery Scott downgraded Danaher from “Buy” to “Neutral.”

International

Most major Asian indexes posted gains in June, with Taiwan’s TAIEX up 3.5% and the Shanghai Composite rising 2.4%. Two indexes declined, as India’s Sensex 30 dropped 0.7% and the Philippines Stock Exchange PSEi Index declined 0.1%.

Four Asian stocks in the IBO Stock Table declined, led by GL Sciences, which fell 11.5%. Precision System Science led all gainers, rising 80.1%.

Major European indexes declined this month. Spain’s IBEX 35 was down 4.0%, while France’s CAC Index declined 3.1%. However, year to date, both indexes are up.

All five European shares in the IBO Stock Table also declined this month, with Sartorius plunging 6.8%. UK shares fared only slightly better, with 1 of the 6 companies in the IBO Stock Table, Horizon Discovery, gaining in price.

On June 2, Horizon Discovery reported that for the year ending December 31, 2016, EPS loss widened 8% to 12.1 pence ($0.16). Despite strong sales and gross margin growth, earnings were negatively impacted by increased operation investments, higher taxation and exceptional cost items. For 2017, the company projected sales to grow 11%–29% to £30–£35 million ($38–$44 million) and positive EBITDA.

Based on continuing operations and favorable currency impact on revenues, Oxford Instruments reported on June 13 that adjusted EPS for the fiscal year ending March 31 advanced 6% to 47.7 pence ($0.62). Organic sales growth for the company were again hampered by industrial demand.

On June 13, Halma reported that fiscal 2017 adjusted EPS ending April 1 climbed 17% to 40.2 pence ($0.52) due to favorable currency impacts and previous restructuring activity. The company’s yearly dividend expanded 7% to 13.7 pence ($0.18). HSBC Holding downgraded the company on June 14 from “Buy” to “Hold,” but raised its price target from GBX 1,150 ($14.55) to GBX 1,200 ($15.18).

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