Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. The Dow Jones Industrial Average ( ^DJI) is trading down 24.0 points (-0.1%) at 16,413 as of Monday, Jan 13, 2014, 9:35 a.m. ET. During this time, 20.1 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 358.2 million. The NYSE advances/declines ratio sits at 1,154 issues advancing vs. 1,573 declining with 224 unchanged.
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The Dow component leading the way higher looks to be Merck (NYSE: MRK), which is sporting a $1.34 gain (+2.7%) bringing the stock to $51.22. Volume for Merck currently sits at 3.9 million shares traded vs. an average daily trading volume of 12.2 million shares. Merck has a market cap of $144.69 billion and is part of the health care sector and drugs industry. Shares are down 0.3% year to date as of Friday's close. The stock's dividend yield sits at 3.5%. Merck & Co., Inc. provides various health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products worldwide. The company has a P/E ratio of 33.2, above the S&P 500 P/E ratio of 17.7. TheStreet Ratings rates Merck as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Holding back the Dow today is Walt Disney (NYSE: DIS), which is lagging the broader Dow index with a 55-cent decline (-0.7%) bringing the stock to $74.84. This single loss is lowering the Dow Jones Industrial Average by 4.16 points or roughly accounting for 17.3% of the Dow's overall loss. Volume for Walt Disney currently sits at 346,873 shares traded vs. an average daily trading volume of 6.4 million shares.
Walt Disney has a market cap of $131.62 billion and is part of the services sector and media industry. Shares are down 1.3% year to date as of Friday's close. The stock's dividend yield sits at 1.1%. The Walt Disney Company operates as an entertainment company worldwide. The company operates in five segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive. The company has a P/E ratio of 22.2, above the S&P 500 P/E ratio of 17.7. TheStreet Ratings rates Walt Disney as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.