J.C. Penney rises after cut in new store openings

Shares rose $1.62, or 4.4 percent, to $38.50 during afternoon trading. The stock has traded between $33.27 and $76.99 during the past 52 weeks.

J.C. Penney said it now plans 20 new or relocated stores in 2009, down from the 36 it plans to open this year. It also will lower capital spending to about $650 million from $1 billion expected this year.

Like many retailers, department store operator J.C. Penney has been hard-hit by a slowdown in consumer spending due to high gas and food prices, the weak housing market and an erosion of consumer confidence.