Dow Today: Caterpillar (CAT) 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 down 75.0 points (-0.6%) at 13,170. During the day, 485.6 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 622.8 million. The NYSE advances/declines ratio closed at 901 issues advancing vs. 2,120 declining with 117 unchanged.
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The Dow component that led the way higher today was Caterpillar (NYSE: CAT), which sported a 41-cent gain (+0.5%) bringing the stock to $88.36. Volume for Caterpillar ended the day at 6.1 million shares traded vs. an average daily trading volume of seven million shares.

Caterpillar has a market cap of $57.11 billion and is part of the conglomerates sector and conglomerates industry. Shares are down 3.6% year to date as of Wednesday's close. The stock's dividend yield sits at 2.4%.

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 8.9, 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.

Holding the Dow back today was International Business Machines (NYSE: IBM), which lagged the broader Dow index with a 96-cent decline (-0.5%) bringing the stock to $191.99. This single loss lowered the Dow Jones Industrial Average by 7.27 points or roughly accounting for 9.7% of the Dow's overall loss. Volume for International Business Machines ended the day at 3.6 million shares traded vs. an average daily trading volume of 4.2 million shares.

International Business Machines has a market cap of $219.43 billion and is part of the technology sector and computer hardware industry. Shares are up 4.9% year to date as of Wednesday'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 14, 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 and expanding profit margins. 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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