Dow Today: International Business Machines (IBM) Leads The Day Higher, AT&T (T) 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 46 points (+0.4%) at 12,588. During the day, 754.3 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 602.7 million. The NYSE advances/declines ratio closed at 2,267 issues advancing vs. 792 declining with 72 unchanged.
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The Dow component that led the way higher today was International Business Machines (NYSE: IBM), which sported a $1.09 gain (+0.6%) bringing the stock to $186.94. This single gain lifted the Dow Jones Industrial Average by 8.25 points or roughly accounting for 17.9% of the Dow's overall gain. Volume for International Business Machines ended the day at 4.5 million shares traded vs. an average daily trading volume of four million shares.

International Business Machines has a market cap of $209.61 billion and is part of the technology sector and computer hardware industry. Shares are up 1.1% year to date as of Thursday's close. The stock's dividend yield sits at 1.8%.

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 13.4, 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 notable return on equity, growth in earnings per share, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Holding the Dow back today was AT&T (NYSE: T), which lagged the broader Dow index with a 28-cent decline (-0.8%) bringing the stock to $33.14. Volume for AT&T ended the day at 32.1 million shares traded vs. an average daily trading volume of 25.7 million shares.

AT&T has a market cap of $191.87 billion and is part of the technology sector and telecommunications industry. Shares are up 11.7% year to date as of Thursday's close. The stock's dividend yield sits at 5.3%.

AT&T Inc., together with its subsidiaries, provides telecommunications services to consumers, businesses, and other providers worldwide. The company has a P/E ratio of 43.9, above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates AT&T as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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