Dow Today: Chevron (CVX) Leads The Day Higher, Caterpillar (CAT) 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 63 points (+0.4%) at 14,865. During the day, 654.9 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 599.2 million. The NYSE advances/declines ratio closed at 1,842 issues advancing vs. 1,164 declining with 130 unchanged.
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The Dow component that led the way higher today was Chevron (NYSE: CVX), which sported a $1.31 gain (+1.1%) bringing the stock to $120.95. This single gain lifted the Dow Jones Industrial Average by 9.91 points or roughly accounting for 15.7% of the Dow's overall gain. Volume for Chevron ended the day at 6.1 million shares traded vs. an average daily trading volume of 5.5 million shares.

Chevron has a market cap of $230.48 billion and is part of the basic materials sector and energy industry. Shares are up 10.6% 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 8.9, 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.

Holding the Dow back today was Caterpillar (NYSE: CAT), which lagged the broader Dow index with an 87-cent decline (-1%) bringing the stock to $85.70. Volume for Caterpillar ended the day at 6.7 million shares traded vs. an average daily trading volume of 6.2 million shares.

Caterpillar has a market cap of $56.27 billion and is part of the industrial goods sector and industrial industry. Shares are down 3.4% 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 10.1, 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 good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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