Encouraging economic data and corporate-earnings reports lifted US equity markets to new highs in November. Following 4.6% growth in the second quarter, US third quarter GDP growth was revised upwards 40 basis points to 3.9% due to strong consumer spending. However, weaker-than-expected capital-goods orders and a spike in US jobless claims, coupled with slow manufacturing in Europe and China, heightened global economic-growth concerns. For the month, the Dow Jones Industrial Average and S&P 500 grew 2.5% each, and the NASDAQ advanced 3.5%. Year to date, the Dow, S&P 500 and NASDAQ are up 7.6%, 11.9% and 14.7%, respectively.

All four IBO Stock Indexes increased in November, led by the Laboratory Instrumentation Stock Index, which gained 8.0%. The Diversified Instrumentation, Lab Consumables/Equipment and Process/Metrology Instrumentation Stock Indexes grew 4.7%, 3.2% and 1.3%, respectively.

Laboratory Instrumentation Stock Index

For the month, the Index grew 8.0% to close at 1,180.95 and is up 21.1% for the year. Most of the Index companies advanced, led by NanoString Technologies, which jumped 40.0%. The firm posted record third quarter sales on November 6 (see page 12) due to strong consumables demand and a collaboration with Celgene to develop companion diagnostics. However, the company narrowed its full-year revenue outlook from $45–$50 million to $46–$48 million.

MOCON also posted record results, as third quarter revenues and EPS grew 17% and 21% to $16.6 million and $0.29, respectively. Shares climbed 10.5% for the month. On November 4, Becton, Dickinson (BD) beat fiscal fourth quarter EPS estimates and projected fiscal 2015 EPS to grow 8%–9% excluding currency to $6.76–$6.83. On November 26, JPMorgan Chase upgraded the company from “Neutral” to “Overweight” and raised its price target from $134 to $160 per share. BD climbed 9.0% for the month.

On November 6, Bruker missed adjusted third quarter EPS and revenue expectations and lowered its 2014 EPS forecast by $0.05 to $0.72–$0.78. Shares fell 14.3% the next day but were down 7.5% for the month. On November 7, the company was downgraded by Citigroup from “Buy” to “Neutral” and by Cantor Fitzgerald from “Buy” to “Hold.”

The two biggest falloffs in the Index in November were recorded by Transgenomic and Pressure BioSciences, which fell 29.7% and 17.6%, respectively. Transgenomic reported several executive changes on November 5. Pressure BioSciences third quarter sales fell 11% due to no grant revenue.

In other news, Thermo Fisher Scientific announced an $800 million senior-notes offering on November 6 and a €640 million ($800 million) euro-denominated senior-notes offering on November 17, which combined will be used to repay various outstanding debt. The company was up 10.0% for the month. On November 7, Leerink Swann downgraded Luminex from “Outperform” to “Market Perform” and lowered its price target by 9% to $20 per share.

Process/Metrology Instrumentation Stock Index

The Index improved 1.3% in November to 800.15 and is up 3.6% for the year. All five companies traded higher for the month, led by Nanometrics, which climbed 9.6%.

MTS Systems, which was marginally higher for the month, just missed fiscal fourth quarter EPS expectations on November 10, but maintained its fiscal 2015 EPS outlook of $3.60–$4.00. On November 24, Sidoti downgraded MKS Instruments from “Buy” to “Neutral.”

Lab Consumables/Equipment Stock Index

The Index expanded 3.2% to 1,134.27 for the month and is up 25.1% year to date. Six firms rose, while Cellular Dynamics and Enzo Biochem fell 15.1% and 13.0%, respectively.

VWR recorded the largest price gain in the Index in November, rising 20.1%. The company beat third quarter adjusted EPS estimates on November 6 and projected 2014 adjusted EPS of $1.14–$1.18. Pall beat fiscal first quarter 2015 EPS on November 25 and maintained its fiscal 2015 EPS outlook of $3.75–$3.95 for growth of 9%–15%. Shares were up 5.1% for the month.

Diversified Instrumentation Stock Index

The Index grew 4.7% in November to 236.70 and is up 9.7% for the year. Most companies traded higher, led by Mettler-Toledo, which jumped 13.5%. The company beat third quarter adjusted EPS and raised its full-year EPS outlook from $11.45–$11.60 to $11.60–$11.65. The company also projected 2015 adjusted EPS of $12.80–$13.05.

On November 17, Agilent Technologies projected fiscal first quarter and full-year 2015 adjusted EPS of $0.39–$0.43 and $1.68–$1.78, respectively, both in line with expectations. However, the company was downgraded from “Outperform” to “Neutral” by Robert W. Baird on November 4, and from “Outperform” to “Market Perform” by both Wells Fargo and Cowen on November 4 and November 18, respectively. Shares advanced 8.1% for the month. On November 6, AMETEK announced a new $200 million stock-repurchase authorization. FBR Capital upgraded Danaher on November 12 from “Market Perform” to “Outperform.”

International

Asia Pacific equity markets were strong in November as China’s Shanghai Composite soared 10.4% due to reduced interest rates by China’s central banks. Japan’s Nikkei 225 climbed 6.4% for the month to close at a seven-year high.

In November, prices for the six Pacific Region companies in the IBO Stock Table improved, while Techcomp fell 11.7%. On November 13, the company reported that third quarter sales (see page 12) and EPS declined 18% and 60% to $35.4 million and $0.12, respectively. Precision System Science and Shimadzu recorded the largest gains, rising 39.5% and 22.0%, respectively. On November 10, Shimadzu reported that fiscal 2015 second quarter EPS grew 18% to ¥18.13 ($0.17) and maintained its 2015 EPS outlook of ¥52.56 ($0.51) for growth of 59%.

GL Sciences also reported higher fiscal 2015 second quarter EPS on November 5, which grew 12.4% to ¥22.09 ($0.21). Shares climbed 1.5% for the month. On November 10, HORIBA reported that third quarter EPS fell 20% to ¥32.21 ($0.31). However, the company slightly raised its full-year EPS forecast to ¥212.72 ($2.05). On November 11, JEOL reported that fiscal 2015 second quarter EPS fell 63% to ¥4.59 ($0.04), yet shares advanced 6.1% for the month.

European equity indexes mostly traded higher in November, led by Germany’s DAX, which climbed 7.0%. The London FTSE 100 improved 2.7%. All UK-based companies in the IBO Stock Table advanced, except for Porvair. On November 11, Oxford Instruments reported that adjusted EPS fell 27% to £0.21 ($0.34) for the fiscal 2015 half year due to lower sales volume, currency and higher interest expenses. But it raised its interim dividend by 10.1% to 3.7 pence ($0.06). Shares climbed 6.8% for the month. On November 18, Halma reported that half-year 2015 adjusted EPS grew 8% to £0.15 ($0.23) and raised its interim dividend by 7% to £0.05 ($0.08). Shares rose 7.5% for the month. On November 28, Goldman Sachs upgraded Abcam from “Buy” to “Conviction Buy” with a target price of 645 pence ($10.09).