Dow Jones (DJIA) component Home Depot (HD: sentiment, chart, options) is more than 4% higher as we head toward midday, thanks to an announcement the company made earlier this morning. The home-improvement retailer will jettison plans to add roughly 50 U.S. stores in order to save cash for existing stores. HD will also shutter 15 of its U.S. locations that it deems as underperformers. HD will take charges of $586 million, most of which will hit in the first quarter of 2008. Excluding the expected charge, HD believes it will see full-year profit fall 19% to 24%. According to analysts, HD's earnings are expected to fall to $1.77 per share from $2.27 per share.

Some analysts believe this is a rational move, and HD's decision does follow the lead set by fellow retailers Wal-Mart Stores (WMT) and J.C. Penney (JCP). Those same analysts and investors are applauding this move, but will it be enough to sustain a move north of the 30 level? The shares are currently trading above the round-number 30 region, and could close above said level for the first time since the February 1. Such a move could be seen as a sign of strength, so keep an eye on the stock and the 30 level throughout the day.