Dow Today: Boeing (BA) Leads The Day Higher, Caterpillar (CAT) 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 32 points (+0.3%) at 12,820 as of Wednesday, Nov 21, 2012, 9:35 a.m. ET. During this time, 24.8 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 615.8 million. The NYSE advances/declines ratio sits at 1,595 issues advancing vs. 1,020 declining with 178 unchanged.
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The Dow component leading the way higher looks to be Boeing (NYSE: BA), which is sporting a 50-cent gain (+0.7%) bringing the stock to $73.04. This single gain is lifting the Dow Jones Industrial Average by 3.78 points or roughly accounting for 11.8% of the Dow's overall gain. Volume for Boeing currently sits at 156,694 shares traded vs. an average daily trading volume of 4.9 million shares.

Boeing has a market cap of $54.26 billion and is part of the industrial goods sector and aerospace/defense industry. Shares are down 1.1% year to date as of Tuesday's close. The stock's dividend yield sits at 2.4%.

The Boeing Company, together with its subsidiaries, engages in the design, development, manufacture, sale, and support of commercial jetliners, military aircraft, satellites, missile defense, human space flight, and launch systems and services worldwide. The company has a P/E ratio of 12.7, below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Boeing as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Holding back the Dow today is Caterpillar (NYSE: CAT), which is lagging the broader Dow index with a 65-cent decline (-0.8%) bringing the stock to $82.68. Volume for Caterpillar currently sits at 261,283 shares traded vs. an average daily trading volume of 7.5 million shares.

Caterpillar has a market cap of $54.68 billion and is part of the conglomerates sector and conglomerates industry. Shares are down 7.7% year to date as of Tuesday'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 8.6, 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 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 high debt management risk by most measures that we evaluated.

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