Dow Today: International Business Machines (IBM) Leads The Day Higher, McDonald's Corporation (MCD) 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 49 points (+0.3%) at 15,105. During the day, 554.3 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 601.1 million. The NYSE advances/declines ratio closed at 1,959 issues advancing vs. 1,035 declining with 119 unchanged.
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The Dow component that led the way higher today was International Business Machines (NYSE: IBM), which sported a $2.14 gain (+1.1%) bringing the stock to $204.82. This single gain is lifting the Dow Jones Industrial Average by 16.2 points or roughly accounting for 33.1% 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 4.2 million shares.

International Business Machines has a market cap of $224.84 billion and is part of the technology sector and computer hardware industry. Shares are up 6.3% year to date as of Tuesday'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.

Holding the Dow back today was McDonald's Corporation (NYSE: MCD), which lagged the broader Dow index with a $1.34 decline (-1.3%) bringing the stock to $100.95. Volume for McDonald's Corporation ended the day at 5.2 million shares traded vs. an average daily trading volume of 4.7 million shares.

McDonald's Corporation has a market cap of $102.33 billion and is part of the services sector and leisure industry. Shares are up 16% year to date as of Tuesday's close. The stock's dividend yield sits at 3%.

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 18.9, 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, good cash flow from operations, growth in earnings per share, increase in net income 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.

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