Dow Today: Caterpillar (CAT) Leads The Day Higher, Cisco Systems (CSCO) Lags

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 up 41 points (+0.3%) at 15,920 as of Monday, Jan 27, 2014, 9:35 a.m. ET. During this time, 26.4 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 358.9 million. The NYSE advances/declines ratio sits at 1,605 issues advancing vs. 1,123 declining with 230 unchanged.
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The Dow component leading the way higher looks to be Caterpillar (NYSE: CAT), which is sporting a $5.05 gain (+5.9%) bringing the stock to $91.22. This single gain is lifting the Dow Jones Industrial Average by 38.22 points or roughly accounting for 93.2% of the Dow's overall gain. Volume for Caterpillar currently sits at 2.8 million shares traded vs. an average daily trading volume of 4.9 million shares.

Caterpillar has a market cap of $56.3 billion and is part of the industrial goods sector and industrial industry. Shares are down 5.1% year to date as of Friday's close. The stock's dividend yield sits at 2.7%.

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 16.9, 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.

Holding back the Dow today is Cisco Systems (Nasdaq: CSCO), which is lagging the broader Dow index with an 18-cent decline (-0.8%) bringing the stock to $22.02. Volume for Cisco Systems currently sits at 4.7 million shares traded vs. an average daily trading volume of 45.8 million shares.

Cisco Systems has a market cap of $120.62 billion and is part of the technology sector and computer hardware industry. Shares are down 1% year to date as of Friday's close. The stock's dividend yield sits at 3%.

Cisco Systems, Inc. designs, manufactures, and sells Internet protocol (IP) and other products related to the communications and information technology industry worldwide. The company has a P/E ratio of 12.3, below the S&P 500 P/E ratio of 17.7.

TheStreet Ratings rates Cisco Systems 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, notable return on equity, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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