XAIR - Hot Stocks: CCL UPST fall on bearish analyst comments; MKC slips on earnings; XAIR gets FDA approval

Analyst comments provided a key catalyst in Wednesday's midday trading. Both Carnival ( NYSE: CCL ) and Upstart ( UPST ) dropped on negative notes from Morgan Stanley.

Meanwhile, earnings news prompted a notable move in McCormick ( MKC ). Shares lost ground following a disappointing quarterly update.

Turning to the upside, Beyond Air ( XAIR ) got a lift after receiving regulatory approval for a respiratory device for infants.

Decliners

Carnival ( CCL ) dropped after Morgan Stanley warned that its extreme bear case involves the stock falling to zero . Even in its more bullish prediction, the firm slashed its price target to a Street-low $7.

Morgan Stanley, which already rated the stock at Underperform, cut its estimates for the cruise line, saying it now sees an EBITDA loss for 2022 of $900M -- which would mark the firm's third consecutive year of losses. Morgan Stanley further warned that CCL's EPS will be weighed down by higher financing costs, as the company was forced to pile on debt during COVID.

Weighed down by negative comment, CCL plunged 15% in midday trading, setting a new intraday 52-week low during morning action.

Bearish remarks from Morgan Stanley also spurred selling in Upstart ( UPST ). The firm downgraded the AI lending platform to Underweight from Equal-weight .

In cutting its rating, Morgan Stanly noted "deteriorating relative underwriting performance and increasing required returns from institutional partners." Shares dropped about 10% on the news.

In other news, earnings news sparked a downturn in McCormick ( MKC ). The stock dropped around 3% in midday trading after missing expectations with its Q2 earnings. Revenue slipped 1% to $1.54B, while the spice maker also cut its 2022 outlook.

Gainer

Beyond Air ( XAIR ) saw strength in midday trading after receiving U.S. regulatory approval for its LungFit PH product to treat infants with hypoxic respiratory failure. Shares rose 7% on the news.

The company said the U.S. Food and Drug Administration approved the nitric oxide generator and delivery system, marking the first FDA approval for the company. XAIR has slated a broader hospital launch in the first half of next year.

To track Wall Street's best- and worst-performing stocks throughout the session, turn to Seeking Alpha's On The Move section .

For further details see: