Dow Today: Bank Of America Corporation (BAC) Leads The Day Higher, Hewlett-Packard (HPQ) 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 46 points (+0.3%) at 13,621 as of Friday, Oct 5, 2012, 9:35 a.m. ET. During this time, 43.1 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 579.1 million. The NYSE advances/declines ratio sits at 2,026 issues advancing vs. 604 declining with 178 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 20-cent gain (+2.2%) bringing the stock to $9.62. This single gain is lifting the Dow Jones Industrial Average by 1.51 points or roughly accounting for 3.3% of the Dow's overall gain. Volume for Bank of America Corporation currently sits at 21.6 million shares traded vs. an average daily trading volume of 132.3 million shares.

Bank of America Corporation has a market cap of $98.18 billion and is part of the financial sector and banking industry. Shares are up 63.8% year to date as of Thursday'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 7.2, below the average banking industry P/E ratio of 9.7 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 Hewlett-Packard (NYSE: HPQ), which is lagging the broader Dow index with an 11-cent decline (-0.7%) bringing the stock to $14.83. Volume for Hewlett-Packard currently sits at 2.6 million shares traded vs. an average daily trading volume of 23.9 million shares.

Hewlett-Packard has a market cap of $29.32 billion and is part of the technology sector and computer hardware industry. Shares are down 42% year to date as of Thursday's close. The stock's dividend yield sits at 3.5%.

Hewlett-Packard Company and its subsidiaries provide products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide.

TheStreet Ratings rates Hewlett-Packard as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, poor profit margins and generally high debt management risk.

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