Diamonds and Dogs
The Children's Place (PLCE) is the place to be. The children's retailer is up 20% to a new 52 week high after easily beating estimates guiding 2018 estimates above estimates. Revenues rose 4.5% year over year to $520.8 million. The better than expected earnings was due in part to fleet optimization initiatives and closing 142 stores. The company plans to close 300 stores by 2020. The company also authorized a new $250 million share repurchase program and increased the quarterly dividend by 100% from $0.20 per share to $0.40 per share.
Caterpillar (CAT) lower by 2%, the weakest Dow component, on tax and accounting fraud. According to the New York Times, the report focused on the company's offshore tax arrangement and its failure to pay federal taxes on billions of dollars brought back to the US. The allegation comes after three of its Central Illinois facilities were raided by federal law enforcement last week. The company has said that it has not viewed the government report and it has not been made public.
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