(By Mayur Pahilajani - iStockAnalyst Writer)
The market opened higher following carnage on Wall Street as some economists speculate the U.S. government would revive the bailout proposal to rescue the financial firms. But there are some companies that defied the overall improving market sentiment on Tuesday. Major firms producing consumer products are still suffering from Wall Street's fallout as consumer spending decline. Some of the stocks that usually show large volumes hit day's low.
Wendys/Arbys Group, Inc. (NYSE:WEN):
The new Wendy's (Wendy's/Arby's Group Inc.) has indicated that it will change its strategy to target older customers ages 24 to 49, rather than courting individuals between 18 to 24 years old. On Monday, Wendy's was officially taken over by the owner of Arby's, Triarc Cos., for $2.34 billion. The nation's third-largest hamburger chain is planning to increase its sales by entering new business including breakfast and will focus on its "fresh, not frozen" square burgers. The Atlanta-based Triarc is managed by billionaire investor Nelson Peltz. Shares of Wendys/Arbys Group, Inc. hit a low of $5.12 on Tuesday's early morning trading session on the New York Stock Exchange, after it closed at $5.90. At 10:36am ET, shares were lower by 72.62 percent or $13.95 to $5.26.
Cypress Semiconductor Corporation (NYSE: CY):
Cypress Semiconductor is losing strength in technology sector after it completed the spin-off of the class B common majority in stock SunPower Corporation. The California-based Cypress Semiconductor also completed a merger between its subsidiary Copper Acquisition Corporation and Simtek Corporation. In addition, it also planned to close its Round Rock, Texas, plant, which will instantly lay off 211 employees. Currently, Cypress employs around 8,000 people worldwide. At 10:26am ET, stock was sharply down by 72.93 percent or $14.01 at $5.20, after it closed at $19.52 on Monday.
Reliant Energy Inc (NYSE: RRI):
Reliant Energy is being forced to raise as much as $1 billion in capital on damages by hurricane and financial market tumults. With the new capital, the Houston, Texas-based company will seek to lower collateral requirements and aims to report more consistent earnings.
