Dow Today: Microsoft Corporation (MSFT) 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) is trading down 60.0 points (-0.4%) at 14,477 as of Friday, Apr 19, 2013, 9:35 a.m. ET. During this time, 105.7 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 596.2 million. The NYSE advances/declines ratio sits at 1,692 issues advancing vs. 725 declining with 198 unchanged.
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The Dow component leading the way higher looks to be Microsoft Corporation (Nasdaq: MSFT), which is sporting a $1.17 gain (+4.1%) bringing the stock to $29.96. Volume for Microsoft Corporation currently sits at 15.9 million shares traded vs. an average daily trading volume of 47.4 million shares.

Microsoft Corporation has a market cap of $241.45 billion and is part of the technology sector and computer software & services industry. Shares are up 7.9% year to date as of Thursday's close. The stock's dividend yield sits at 3.2%.

Microsoft Corporation develops, licenses, and supports software products and services; and designs and sells hardware worldwide. The company has a P/E ratio of 15.8, below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Microsoft Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Holding back the Dow today is International Business Machines (NYSE: IBM), which is lagging the broader Dow index with a $13.86 decline (-6.7%) bringing the stock to $193.29. This single loss is lowering the Dow Jones Industrial Average by 104.9 points or roughly accounting for 174.8% of the Dow's overall loss. Volume for International Business Machines currently sits at 2.8 million shares traded vs. an average daily trading volume of 3.7 million shares.

International Business Machines has a market cap of $233.68 billion and is part of the technology sector and computer hardware industry. Shares are up 8.1% year to date as of Thursday'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 14.6, 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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