Dow Today: Caterpillar (CAT) Leads The Day Higher, Merck (MRK) Lags

The Dow Jones Industrial Average (^DJI) closed up 135 points (+1.1%) at 12,504. During the day, 707.2 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 724.5 million. The NYSE advances/declines ratio closed at 2,577 issues advancing vs. 434 declining with 101 unchanged.

The Dow component that led the way higher today was Caterpillar (NYSE:CAT), which sported a $3.30 gain (+3.7%) bringing the stock to $91.98. This single gain lifted the Dow Jones Industrial Average by 24.98 points or roughly accounting for 18.5% of the Dow's overall gain. Volume for Caterpillar ended the day at 6.7 million shares traded vs. an average daily trading volume of 6.6 million shares.

Caterpillar has a market cap of $57.29 billion and is part of the conglomerates sector and conglomerates industry. Shares are down 3.1% year to date as of Friday's close. The stock's dividend yield sits at 2.1%.

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. The company has a P/E ratio of 11.1, equal to the average conglomerates industry P/E ratio and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Caterpillar as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated.

• You can view the full Caterpillar Ratings Report.

Holding the Dow back today was Merck (NYSE:MRK), which lagged the broader Dow index with a 22-cent decline (-0.6%) bringing the stock to $37.60. Volume for Merck ended the day at 9.1 million shares traded vs. an average daily trading volume of 14 million shares.

• See our dividend calendar or top-yielding stocks list.

Merck has a market cap of $115.67 billion and is part of the health care sector and drugs industry. Shares are up 0.9% year to date as of Friday's close. The stock's dividend yield sits at 4.4%.

Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. The company has a P/E ratio of 17, equal to the average drugs industry P/E ratio and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Merck as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

• You can view the full Merck Ratings Report.

 

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