CBOT Dow News & Highlights: July 19-23, 2004

On Tuesday, July 20^th, two days before earnings were to be announced, Microsoft surprised investors by serving shareholders a special, one-time $3.00 dividend along with other quarterly dividend enhancements. Relieved the company decided to finally lighten their conservative cash position, the market bid Microsoft shares higher. But, unable to maintain positive momentum, shares fell 3.34% on Friday reflecting earnings which came in a penny per share lower than expectations.

Unfortunately, the same story resonated throughout the entire week. Dow Jones Industrial Average^SM companies generally reported numbers in line with analysts' expectations, but projected a mixed outlook for the second half of the year. Therefore, a market priced for optimistic news only, sold off with the DJIA^SM finishing down 1.75% for the week.

mini-sized Dow^SM futures surpassed average daily volume the week of July 19-23 of 100,000 contracts. mini-sized Dow futures options reached average daily volume over 1,300 contracts.

DJIA index price movers:

Coca-Cola -5.41 SBC Communications +1.12
3M -5.22 United Technologies +1.30
Caterpillar -4.59

The week ahead:

DJIA reporting companies include American Express (7/26), Verizon Wireless (7/27), DuPont (7/27), Boeing (7/28), and Exxon Mobil (7/29).

Major economic news includes July Consumer Confidence (7/27), June Durable Goods (7/28), and Second Quarter GDP (7/30).

Keep an attentive eye on mini-sized Dow futures as, once again, several companies report earnings and important economic numbers hit the tape. What will it take for the market to switch gears?

Note: As a result of Microsoft's special dividend, the Dow Jones Industrial Average will change its divisor. This will be completed, if approved by shareholders, on the date the stock trades ex-dividend. To read related press release GO>> To read about the function of the Dow divisor GO>>

Dow Complex volume and open interest.
CBOT mini-sized Dow options information, including free live quotes.