Dow Today: McDonald's Corporation (MCD) 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 56 points (+0.4%) at 14,606. During the day, 490.6 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 604.4 million. The NYSE advances/declines ratio closed at 1,834 issues advancing vs. 1,101 declining with 164 unchanged.
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The Dow component that led the way higher today was McDonald's Corporation (NYSE: MCD), which sported a $1.38 gain (+1.4%) bringing the stock to $100.63. This single gain lifted the Dow Jones Industrial Average by 10.44 points or roughly accounting for 18.6% of the Dow's overall gain. Volume for McDonald's Corporation ended the day at 5.8 million shares traded vs. an average daily trading volume of 4.9 million shares.

McDonald's Corporation has a market cap of $100.54 billion and is part of the services sector and leisure industry. Shares are up 12.5% year to date as of Wednesday's close. The stock's dividend yield sits at 3.1%.

McDonald's Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. Its restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. The company has a P/E ratio of 18.7, above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates McDonald's Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Holding the Dow back today was International Business Machines (NYSE: IBM), which lagged the broader Dow index with a $1.35 decline (-0.6%) bringing the stock to $211.31. Volume for International Business Machines ended the day at 3.7 million shares traded vs. an average daily trading volume of 3.8 million shares.

International Business Machines has a market cap of $238.91 billion and is part of the technology sector and computer hardware industry. Shares are up 11% 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 14.9, 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.

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