Dow Today: International Business Machines (IBM) Leads The Day Higher, Hewlett-Packard (HPQ) 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 175 points (+1.3%) at 14,075. During the day, 556.4 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 627.3 million. The NYSE advances/declines ratio closed at 2,298 issues advancing vs. 704 declining with 105 unchanged.
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The Dow component that led the way higher today was International Business Machines (NYSE: IBM), which sported a $3.19 gain (+1.6%) bringing the stock to $202.33. This single gain lifted the Dow Jones Industrial Average by 24.14 points or roughly accounting for 13.8% of the Dow's overall gain. Volume for International Business Machines ended the day at 4.2 million shares traded vs. an average daily trading volume of 3.8 million shares.

International Business Machines has a market cap of $223.17 billion and is part of the technology sector and computer hardware industry. Shares are up 3.1% year to date as of Tuesday'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, 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.

Holding the Dow back today was Hewlett-Packard (NYSE: HPQ), which lagged the broader Dow index with a two-cent decline to $19.77. Volume for Hewlett-Packard ended the day at 29.4 million shares traded vs. an average daily trading volume of 28.7 million shares.

Hewlett-Packard has a market cap of $37.24 billion and is part of the technology sector and computer hardware industry. Shares are up 33.8% year to date as of Tuesday's close. The stock's dividend yield sits at 2.8%.

Hewlett-Packard Company and its subsidiaries provide products, technologies, software, solutions, and services to individual consumers, small-and medium-sized businesses (SMBs), and large enterprises, including customers in the government, health, and education sectors worldwide.

TheStreet Ratings rates Hewlett-Packard as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

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