Dow Today: Bank Of America Corporation (BAC) Leads The Day Higher, United Technologies (UTX) Lags

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

The Dow Jones Industrial Average ( ^DJI) is trading up eight points at 13,572 as of Wednesday, Sep 19, 2012, 9:40 a.m. ET. During this time, 34.5 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 578.4 million. The NYSE advances/declines ratio sits at 1,510 issues advancing vs. 958 declining with 245 unchanged.
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The Dow component leading the way higher looks to be Bank of America Corporation (NYSE: BAC), which is sporting a six-cent gain (+0.7%) bringing the stock to $9.29. This single gain is lifting the Dow Jones Industrial Average by 0.45 points or roughly accounting for 5.6% of the Dow's overall gain. Volume for Bank of America Corporation currently sits at 12.9 million shares traded vs. an average daily trading volume of 133.4 million shares.

Bank of America Corporation has a market cap of $100.23 billion and is part of the financial sector and banking industry. Shares are up 66% year to date as of Tuesday's close. The stock's dividend yield sits at 0.4%.

Bank of America Corporation, through its subsidiaries, provides various banking and financial products and services to individual consumers, small-and middle-market businesses, institutional investors, corporations, and governments in the United States and internationally. The company has a P/E ratio of 7.3, below the average banking industry P/E ratio of 9.9 and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Bank of America Corporation as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and weak operating cash flow.

Holding back the Dow today is United Technologies (NYSE: UTX), which is lagging the broader Dow index with a 50-cent decline (-0.6%) bringing the stock to $80.98. Volume for United Technologies currently sits at 247,944 shares traded vs. an average daily trading volume of 3.8 million shares.

United Technologies has a market cap of $74.9 billion and is part of the conglomerates sector and conglomerates industry. Shares are up 11.5% year to date as of Tuesday's close. The stock's dividend yield sits at 2.6%.

United Technologies Corporation provides technology products and services to the building systems and aerospace industries worldwide. The company has a P/E ratio of 13.8, below the average conglomerates industry P/E ratio of 14.4 and below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates United Technologies as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, notable return on equity, increase in stock price during the past year and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

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