Dow Today: Bank Of America Corporation (BAC) 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 19.0 points (-0.1%) at 14,954 as of Monday, May 6, 2013, 9:36 a.m. ET. During this time, 30.9 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 600 million. The NYSE advances/declines ratio sits at 1,264 issues advancing vs. 1,188 declining with 220 unchanged.
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The Dow component leading the way higher looks to be Bank of America Corporation (NYSE: BAC), which is sporting a 24-cent gain (+1.9%) bringing the stock to $12.48. Volume for Bank of America Corporation currently sits at 14.6 million shares traded vs. an average daily trading volume of 151.3 million shares.

Bank of America Corporation has a market cap of $131.92 billion and is part of the financial sector and banking industry. Shares are up 5.4% year to date as of Friday's close. The stock's dividend yield sits at 0.3%.

Bank of America Corporation, through its subsidiaries, provides various banking and financial products and services for individual consumers, small and middle market businesses, institutional investors, corporations, and governments in the United States and internationally. The company has a P/E ratio of 29, above the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Bank of America Corporation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

Holding back the Dow today is International Business Machines (NYSE: IBM), which is lagging the broader Dow index with a $1.53 decline (-0.8%) bringing the stock to $202.98. This single loss is lowering the Dow Jones Industrial Average by 11.58 points or roughly accounting for 60.9% of the Dow's overall loss. Volume for International Business Machines currently sits at 381,484 shares traded vs. an average daily trading volume of 4.1 million shares.

International Business Machines has a market cap of $224.41 billion and is part of the technology sector and computer software & services industry. Shares are up 6.8% year to date as of Friday's close. The stock's dividend yield sits at 1.9%.

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, 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 notable return on equity, growth in earnings per share and expanding profit margins. 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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