The Dow Jones Industrial Average ( ^DJI) closed up 20 points (+0.2%) at 12,855. During the day, 724.8 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 722.9 million. The NYSE advances/declines ratio closed at 1,870 issues advancing vs. 1,105 declining with 143 unchanged. The Dow component that led the way higher today was Chevron (NYSE: CVX), which sported a $1.58 gain (+1.6%) bringing the stock to $103.36. This single gain lifted the Dow Jones Industrial Average by 11.96 points or roughly accounting for 59.8% of the Dow's overall gain. Volume for Chevron ended the day at 6.2 million shares traded vs. an average daily trading volume of 6.4 million shares. Chevron has a market cap of $202.87 billion and is part of the basic materials sector and energy industry. Shares are down 4.3% year to date as of Wednesday's close. The stock's dividend yield sits at 3.5%. 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 7.6, 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 International Business Machines (NYSE: IBM), which lagged the broader Dow index with a 63-cent decline (-0.3%) bringing the stock to $200.60. Volume for International Business Machines ended the day at 3.8 million shares traded vs. an average daily trading volume of four million shares.
International Business Machines has a market cap of $232.4 billion and is part of the technology sector and computer hardware industry. Shares are up 9.4% year to date as of Wednesday's close. The stock's dividend yield sits at 1.7%. International Business Machines Corporation provides information technology (IT) products and services worldwide. The company operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing. The company has a P/E ratio of 15.1, equal to the average computer hardware industry P/E ratio and below the S&P 500 P/E ratio of 17.7. TheStreet Ratings rates International Business Machines as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, growth in earnings per share and increase 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.