Dow Today: Hewlett-Packard (HPQ) Leads The Day Higher, Johnson & Johnson (JNJ) 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 63 points (+0.5%) at 12,899 as of Friday, Nov 23, 2012, 9:35 a.m. ET. During this time, 18.9 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 617.4 million. The NYSE advances/declines ratio sits at 1,987 issues advancing vs. 622 declining with 129 unchanged.
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The Dow component leading the way higher looks to be Hewlett-Packard (NYSE: HPQ), which is sporting a 13-cent gain (+1.1%) bringing the stock to $12.07. This single gain is lifting the Dow Jones Industrial Average by 0.98 points or roughly accounting for 1.6% of the Dow's overall gain. Volume for Hewlett-Packard currently sits at 1.4 million shares traded vs. an average daily trading volume of 29.7 million shares.

Hewlett-Packard has a market cap of $23.48 billion and is part of the technology sector and computer hardware industry. Shares are down 53.6% year to date as of Wednesday's close. The stock's dividend yield sits at 4.4%.

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. The company has a P/E ratio of 2.9, below the S&P 500 P/E ratio of 17.7.

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, poor profit margins, weak operating cash flow and generally high debt management risk.

Holding back the Dow today is Johnson & Johnson (NYSE: JNJ), which is lagging the broader Dow index with a 47-cent decline (-0.7%) bringing the stock to $69.12. Volume for Johnson & Johnson currently sits at 510,795 shares traded vs. an average daily trading volume of 11.1 million shares.

Johnson & Johnson has a market cap of $192.85 billion and is part of the health care sector and drugs industry. Shares are up 6.1% year to date as of Wednesday's close. The stock's dividend yield sits at 3.5%.

Johnson & Johnson, together with its subsidiaries, engages in the research and development, manufacture, and sale of various products in the health care field worldwide. The company has a P/E ratio of 22.8, above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Johnson & Johnson as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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