Dow Today: American Express (AXP) 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 up 99 points (+0.7%) at 13,979. During the day, 579.3 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 632.6 million. The NYSE advances/declines ratio closed at 2,187 issues advancing vs. 805 declining with 108 unchanged.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

The Dow component that led the way higher today was American Express (NYSE: AXP), which sported a $1.25 gain (+2.1%) bringing the stock to $60.66. This single gain is lifting the Dow Jones Industrial Average by 9.46 points or roughly accounting for 9.6% of the Dow's overall gain. Volume for American Express ended the day at 6.4 million shares traded vs. an average daily trading volume of 5.4 million shares.

American Express has a market cap of $67.04 billion and is part of the financial sector and financial services industry. Shares are up 4.2% year to date as of Monday's close. The stock's dividend yield sits at 1.3%.

American Express Company provides charge and credit payment card products and travel-related services to customers worldwide. The company has a P/E ratio of 13.6, below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates American Express as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Holding the Dow back today was International Business Machines (NYSE: IBM), which lagged the broader Dow index with a $1 decline (-0.5%) bringing the stock to $202.79. Volume for International Business Machines ended the day at 3.6 million shares traded vs. an average daily trading volume of four million shares.

International Business Machines has a market cap of $231.84 billion and is part of the technology sector and computer hardware industry. Shares are up 6.4% year to date as of Monday's close. The stock's dividend yield sits at 1.7%.

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 13.5, 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 growth in earnings per share, increase in net income, notable return on equity 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.

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

How to Get Rich Using Warren Buffett's Favorite Stock Market Indicators

How to Make Your Life Successful Just Like Billionaire Warren Buffett

How to Live Just Like Billionaire Warren Buffett

How to Make a Deal Like Billionaire Investor Warren Buffett

How to Invest Like Billionaire Warren Buffett