Dow Today: Caterpillar (CAT) Leads The Day Higher, Microsoft (MSFT) 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 down 14.0 points at 16,923 as of Tuesday, Jun 24, 2014, 9:36 a.m. ET. During this time, 10.3 million shares of the 30 Dow components have changed hands vs. an average daily trading volume of 334.6 million. The NYSE advances/declines ratio sits at 1,125 issues advancing vs. 1,545 declining with 269 unchanged.
  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

The Dow component leading the way higher looks to be Caterpillar (NYSE: CAT), which is sporting a 41-cent gain (+0.4%) bringing the stock to $109.19. Volume for Caterpillar currently sits at 173,143 shares traded vs. an average daily trading volume of 4.5 million shares.

Caterpillar has a market cap of $68.42 billion and is part of the industrial goods sector and industrial industry. Shares are up 19.8% year-to-date as of Monday's close. The stock's dividend yield sits at 2.6%.

Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide.

TheStreet Ratings rates Caterpillar as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

Holding back the Dow today is Microsoft (Nasdaq: MSFT), which is lagging the broader Dow index with a 34-cent decline (-0.8%) bringing the stock to $41.65. This single loss is lowering the Dow Jones Industrial Average by 2.57 points or roughly accounting for 18.4% of the Dow's overall loss. Volume for Microsoft currently sits at 1.5 million shares traded vs. an average daily trading volume of 30.8 million shares.

Microsoft has a market cap of $344.29 billion and is part of the technology sector and computer software & services industry. Shares are up 12.2% year-to-date as of Monday's close. The stock's dividend yield sits at 2.7%.

Microsoft Corporation develops, licenses, and supports software, services, and hardware devices. Its Windows division offers Windows operating system; Windows Services suite of applications and Web services, including Outlook.com and SkyDrive; Surface RT and Pro devices; and PC accessories.

TheStreet Ratings rates Microsoft 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, notable return on equity, reasonable valuation levels, increase in stock price during the past year and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
null

If you liked this article you might like

Tax Reform Is Coming and That Means Trump Stock Rally Is Ready to Kill It Again

'Trump Stock' Rally Is Back on Track

Caterpillar Reports 11% Jump in Global Machine Retail Sales in August

FedEx Makes A Comeback: Cramer's Top Takeaways

Watch Out For the Dominoes That Fall: Cramer's 'Mad Money' Recap (Wed 9/20/17)