Despite concerns over the US debt ceiling and a potential government shutdown, equity markets advanced in September due to the Federal Reserve’s decision to continue its bond purchase program, as well as improving economic data, including higher personal income and spending. However, consumer sentiment shifted more negatively in September as a result of discouraging prospects in the jobs market, and manufacturing figures remained sluggish. For the month, the Dow Jones Industrial, S&P 500 and NASDAQ climbed 2.2%, 3.0% and 5.1%, respectively. For the first three quarters, the Dow, S&P 500 and NASDAQ are up 15.5%, 17.9% and 24.9%, respectively.

All four IBO Stock Indexes ended September with strong gains, led by the Process/Metrology/Motion Instrumentation Stock Index, which jumped 9.2%. The Diversified Instrumentation, Lab Consumables/Equipment and Laboratory Instrumentation Stock Indexes climbed 7.4%, 4.9% and 4.1%, respectively.

Laboratory Instrumentation Stock Index

The Laboratory Instrumentation Index improved 4.1% for the month to close at 864.92. Fifteen companies traded higher, and four declined. NanoString Technologies led the Index, rising 44%, while Pressure BioSciences slumped 24%. For the first nine months, the Index is up 30.5% with 16 companies gaining in value and three contracting. Pacific Biosciences gained the most ground, having climbed 225%. Sequenom is down 43%.

On September 12, Accelrys updated its 2013 earnings outlook to include the recent acquisition of ChemSW. Full-year non-GAAP EPS is now projected to be $0.32–$0.34. Shares rose 1.5%. Sequenom announced on September 23 that it has retained Jefferies in an advisory role to review all potential strategic options for its Genetic Analysis business (see page 2). As shares fell 2.5% the next day, Maxim Group advocated that the company was an attractive investment at current levels and reasoned that a potential divestment of the business unit would provide Sequenom with additional capital. Pacific Biosciences soared 72.8% on September 25 after the company announced an exclusive development and marketing agreement with Roche for its sequencing-based systems and consumables products used in the clinical diagnostics market (see page 2).

In other news, Becton, Dickinson announced on September 20 that it would record a pre-tax charge of roughly $340 million in the fiscal fourth quarter due to a $113.5 million unfavorable verdict relating to attempted monopolization in the safety syringe market. Shares traded marginally lower. Transgenomic jumped 8.3% on September 30 as the company announced the hiring of Paul Kinnon as president and CEO. Former President and CEO Craig J. Tuttle was terminated on September 27.

Piper Jaffray upgraded Nanometrics on September 9 to “Overweight” from “Neutral.” On September 18, the investment firm also upgraded Becton, Dickinson to “Overweight” from “Neutral” and raised its price target by 29% to $117 per share, citing strong growth opportunities for the company’s microbiology business. On September 27, Maxim Group initiated coverage of Bruker and Waters each with a “Buy.”

Process/Metrology/Motion Instrumentation Stock Index

The Process/Metrology/Motion Instrumentation Stock Index jumped 9.2% in September and is up 30.5% for the year to 738.78. All six companies advanced for both the month and year. Zygo recorded the largest gain for the month, rising 16%. FEI has the highest return for the year, having gained 58%.

Lab Consumables/Equipment Stock Index

This month, the Laboratory Consumables/Equipment Stock Index grew 4.9% to 826.60, with all eight companies trading higher. For the year, the Index has improved 26.0%. Seven companies have increased in value, while Enzo Biochem has retreated 7%. Cellular Dynamics International has the highest return for the month and year, having gained 41% and 53%, respectively. The company was added to the US small-cap Russell 2000 Index on September 30.

On September 24, Pall raised its quarterly dividend by 10% to $0.28 per share. Earlier in the month, on September 19, Janney Montgomery Scott upgraded the company from “Neutral” to “Buy.”

In other ratings announcements, on September 6, Morgan Stanley started QIAGEN with an “Equal Weight” recommendation. On September 20, Robert W. Baird upgraded Techne from “Neutral” to “Outperform” and raised its price target by 18% to $90 per share. On the same day, the investment firm downgraded Sigma-Aldrich to “Neutral” from “Outperform.” Also on September 20, Wells Fargo downgraded Bruker to “Market Perform” from “Outperform.”

Diversified Instrumentation Stock Index

The Diversified Instrumentation Stock Index gained 7.4% for the month and is up 23.4% for the year to 195.30. All eight companies increased in value for the month and year. Xylem had the highest return for the month, rising 13%. Teledyne Technologies has advanced 31% for the year.

Agilent Technologies advanced 3.4% on September 19 as the company announced plans to spin off its Electronic Measurement business (see page 2). On the same day, Fitch Ratings reaffirmed its debt rating for Agilent at “BBB+” but revised its outlook to “Stable” from “Positive.” Also on September 19, Janney Montgomery Scott upgraded Agilent from “Neutral” to “Buy.”

In other news, on September 10, a Bloomberg article suggested that Danaher could potentially seek a major acquisition and speculated on possible targets such as Spectris and Pall. Danaher rose 1.2%. Illinois Tool Works rose 2.3% on September 24 after the company announced plans to sell its industrial packaging business. Following the announcement, Moody’s Investors Service downgraded the company’s senior unsecured rating to “A2” from “A1.”

International

For the month of September, six Pacific Region companies traded higher and Techcomp was unchanged. Year to date, all seven companies have advanced by double digits. Precision System Science has the highest return for the month and year, having gained 62% and 685%, respectively. On September 24, the company announced a new development agreement with Roche for an automated sample preparation system for the sequencing market. Shares climbed 3.6% the next day.

This month, prices for eight European companies increased and prices for six dropped. Scientific Digital Imaging led all companies with a return of 32%, while Oxford Instruments fell 12%. For the year, 11 companies have positive returns and three have declined in value. Porvair has maintained the highest return, up 56%, while Alpha MOS is down 16%.

Abcam announced on September 10 that adjusted EPS grew 13% to £0.18 ($0.27) for the fiscal year ending June 30. The company also proposed a final dividend increase of 17.0% to £.05 ($0.8), resulting in a full-year dividend payment of £0.07 ($0.11). Shares rose 2.2%. Oxford Instruments announced on September 10 that orders for the current fiscal year were slow in North America and Europe due to lower customer spending on R&D. Shares fell 7.0%. Porvair announced on September 17 that sales for the nine months ending August 31 grew 13% in local currency and that profit before taxes was ahead of company expectations. Shares climbed 5.2%. On September 25, the company reported a licensing agreement with Thermo Electron for sample preparation filters and announced the purchase of Thomas Cain, a provider of environmental laboratory equipment and consumables. Shares rose 0.9%.

In other acquisition related news, Analytik Jena rose 0.5% on September 27 as Endress+Hauser announced plans to bid for the remaining shares of the company (see page 2). Earlier in the month, on September 20, Analytik Jena completed the sales of 1.95 million shares to Ruesch Holding, which were transferred to a group company of Endress+Hauser following regulatory approval. On September 30, Spectris announced the acquisition of NanoSight, a provider of particle analysis instruments (see page 2). Shares traded slightly lower.