The Dow Jones Industrial Average ( ^DJI) is trading up 79 points (+0.6%) at 12,966 as of Friday, Jul 27, 2012, 10:35 a.m. ET. During this time, 130.9 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 685.6 million. The NYSE advances/declines ratio sits at 2,246 issues advancing vs. 587 declining with 115 unchanged.
The Dow component leading the way higher looks to be Caterpillar (NYSE: CAT), which is sporting a $1.05 gain (+1.3%) bringing the stock to $84.35. This single gain is lifting the Dow Jones Industrial Average by 7.95 points or roughly accounting for 10.1% of the Dow's overall gain. Volume for Caterpillar currently sits at 2.6 million shares traded vs. an average daily trading volume of 7.4 million shares. Caterpillar has a market cap of $53.9 billion and is part of the conglomerates sector and conglomerates industry. Shares are down 8.1% year to date as of Thursday's close. The stock's dividend yield sits at 2.5%. 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 9.2, below the average conglomerates industry P/E ratio of 10.4 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.