US Airways Group Inc. (NYSE:LCC) :Current price $16.17
The Justice Department’s lawsuit against the merger of US Airways and AMR Corp. is raising havoc Wednesday among ratings firms who are downgrading airline stocks in reaction. Deutsche Bank downgraded the former as it anticipates that the stock will be ‘range-bound’ during the legal battle that the Department ignited on Tuesday, but the firm reiterates its Buy on the shares of United Continental and Delta Air Lines. Meanwhile, the shares of both companies, along with Delta Air Lines, were downgraded at JPMorgan from Overweight to Neutral as it foresees greater risk and the potential for waning investor interest associated with the legal situation.
Brocade Communications Systems Inc. (NASDAQ:BRCD): Current price $7.99
Brocade shares are up nearly 14 percent Wednesday after the company posted impressive third-quarter profits. The tech firm reported that earnings had more than doubled year-over-year to $118.7 million or 26 cents per share. Revenue did slide, but higher margins and a settlement gain helped Brocade surpass expectations.
MannKind Corp. (NASDAQ:MNKD): Current price $7.59
MannKind has been attempting for at least six years trying to bring an inhaled form of insulin to the market, and now a study has indicated that the product has indeed helped diabetics control their disease. In response, shares are up more than 15 percent Wednesday morning in New York. The stock has tripled in the 12 months through Tuesday.
In a statement, MannKind said that Afrezza, which is a powdered form of insulin delivered through an inhaler, was more effective controlling diabetics’ blood sugar levels when combined with oral diabetes medicines compared to those drugs alone. These results come from the last stage of testing needed to get United States regulatory approval. If approved for sale, the product would be the sole inhaled insulin on the market, potentially supplanting injections and pumps.