Dow Today: Chevron (CVX) Leads The Day Higher, International Business Machines (IBM) 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) closed up 81 points (+0.6%) at 13,575. During the day, 628.8 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 578.3 million. The NYSE advances/declines ratio closed at 2,189 issues advancing vs. 805 declining with 120 unchanged.
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The Dow component that led the way higher today was Chevron (NYSE: CVX), which sported a $1.01 gain (+0.9%) bringing the stock to $117.15. This single gain lifted the Dow Jones Industrial Average by 7.64 points or roughly accounting for 9.4% of the Dow's overall gain. Volume for Chevron ended the day at 5.3 million shares traded vs. an average daily trading volume of 5.8 million shares.

Chevron has a market cap of $231.45 billion and is part of the basic materials sector and energy industry. Shares are up 10.9% year to date as of Wednesday's close. The stock's dividend yield sits at 3.1%.

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 8.8, 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 largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Holding the Dow back today was International Business Machines (NYSE: IBM), which lagged the broader Dow index with a 12-cent decline to $210.39. Volume for International Business Machines ended the day at 2.9 million shares traded vs. an average daily trading volume of 3.7 million shares.

International Business Machines has a market cap of $239.8 billion and is part of the technology sector and computer hardware industry. Shares are up 14.5% year to date as of Wednesday's close. The stock's dividend yield sits at 1.6%.

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 15.3, 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 growth in earnings per share, increase in net income, notable return on equity, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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