Dow Today: International Business Machines (IBM) Leads The Day Higher, Chevron (CVX) 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 52 points (+0.4%) at 14,578. During the day, 497.4 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 616.2 million. The NYSE advances/declines ratio closed at 1,883 issues advancing vs. 1,104 declining with 133 unchanged.
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The Dow component that led the way higher today was International Business Machines (NYSE: IBM), which sported a $2.41 gain (+1.1%) bringing the stock to $213.30. This single gain is lifting the Dow Jones Industrial Average by 18.24 points or roughly accounting for 35.1% of the Dow's overall gain. Volume for International Business Machines ended the day at 3.6 million shares traded vs. an average daily trading volume of 3.8 million shares.

International Business Machines has a market cap of $236.68 billion and is part of the technology sector and computer hardware industry. Shares are up 10.1% year to date as of Wednesday's close. The stock's dividend yield sits at 1.6%.

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 14.8, 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, expanding profit margins 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 Chevron (NYSE: CVX), which lagged the broader Dow index with a $1.37 decline (-1.1%) bringing the stock to $118.82. Volume for Chevron ended the day at eight million shares traded vs. an average daily trading volume of 5.6 million shares.

Chevron has a market cap of $235.03 billion and is part of the basic materials sector and energy industry. Shares are up 11.1% year to date as of Wednesday's close. The stock's dividend yield sits at 3%.

Chevron Corporation, through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. The company has a P/E ratio of 9.1, below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Chevron as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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