The

Dow Jones Industrial Average

(

^DJI

) is trading up 57 points (+0.4%) at 12,813 as of Thursday, Jan 26, 2012, 9:35 a.m. ET. During this time, 43 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 818.6 million. The NYSE advances/declines ratio sits at 1,928 issues advancing vs. 597 declining with 181 unchanged.

The Dow component leading the way higher looks to be

Caterpillar

(NYSE:

CAT

), which is sporting a $3.14 gain (+2.9%) bringing the stock to $112.19. This single gain is lifting the Dow Jones Industrial Average by 23.76 points or roughly accounting for 41.7% of the Dow's overall gain. Volume for Caterpillar currently sits at 2.7 million shares traded vs. an average daily trading volume of 7.8 million shares.

Caterpillar has a market cap of $68.73 billion and is part of the

industrial goods

sector and

industrial

industry. Shares are up 17.3% year to date as of Wednesday's close. The stock's dividend yield sits at 1.7%.

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The company has a P/E ratio of 16.2, equal to the average industrial 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, solid stock price performance, 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.

Holding back the Dow today is

AT&T

(NYSE:

T

), which is lagging the broader Dow index with a 48-cent decline (-1.6%) bringing the stock to $29.74. Volume for AT&T currently sits at 3.2 million shares traded vs. an average daily trading volume of 25 million shares.

AT&T has a market cap of $178.31 billion and is part of the

technology

sector and

telecommunications

industry. Shares are down 0.1% year to date as of Wednesday's close. The stock's dividend yield sits at 5.8%.

AT&T Inc., together with its subsidiaries, provides telecommunication services to consumers, businesses, and other service providers worldwide. The company has a P/E ratio of 15.2, below the average telecommunications industry P/E ratio of 15.4 and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates AT&T as a

buy

. The company's strengths can be seen in multiple areas, such as its expanding profit margins, good cash flow from operations, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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