The Dow Jones Industrial Average ( ^DJI) closed up 66 points (+0.5%) at 13,279. During the day, 619.5 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 743.8 million. The NYSE advances/declines ratio closed at 1,960 issues advancing vs. 1,059 declining with 124 unchanged. The Dow component that led the way higher today was Chevron (NYSE: CVX), which sported a $1.71 gain (+1.6%) bringing the stock to $108.27. This single gain lifted the Dow Jones Industrial Average by 12.94 points or roughly accounting for 19.6% of the Dow's overall gain. Volume for Chevron ended the day at 6.1 million shares traded vs. an average daily trading volume of 6.5 million shares. Chevron has a market cap of $209.5 billion and is part of the basic materials sector and energy industry. Shares are up 0.2% year to date as of Monday's close. The stock's dividend yield sits at 3.4%. Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The company has a P/E ratio of 7.9, equal to the average energy industry P/E ratio and below the S&P 500 P/E ratio of 17.7. TheStreet Ratings rates Chevron 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, attractive valuation levels, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.
Holding the Dow back today was Caterpillar (NYSE: CAT), which lagged the broader Dow index with a 68-cent decline (-0.7%) bringing the stock to $102.09. Volume for Caterpillar ended the day at 5.5 million shares traded vs. an average daily trading volume of 6.5 million shares.
Caterpillar has a market cap of $68.23 billion and is part of the conglomerates sector and conglomerates industry. Shares are up 15.4% year to date as of Monday's close. The stock's dividend yield sits at 1.8%. 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 13.2, 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.