Nearest Support: $25.50
Catalyst: Earnings, Cut Expectations News Corp. ( NWSA) is getting attention after earnings today, with shares down more than 2.3% as I write. No, that doesn't mean that the firm's numbers were bad -- only that Wall Street expected them to be better. All told, the firm earned $1.03 per share, meeting analysts' expectations for the quarter. The selling is coming as a result of a cut to the firm's 2013 expectations. More important, today's price action points to more downside in shares. NWSA had been trending higher for all of 2013, failing to establish any meaningful support levels along the way. For that reason, the nearest strong pocket of demand for shares looks like $25.50, which is not something that investors want to hear right now. If you're looking for a place to jump into NWSA at lower levels, wait for it to find support first.
Nearest Support: $9.40
Catalyst: Drug Sale Last up is Elan ( ELN). The Irish drug maker got shellacked yesterday after announcing that it was selling its crown jewel pharmaceutical, multiple sclerosis treatment Tysabri, for $3.25 billion in cash. The move leaves Elan with huge cash reserves in its coffers, but without its most lucrative drug. Investors reacted by selling off shares by more than 7%. Even though ELN is rebounding today, this stock is still well below where it opened yesterday. More importantly, shares remain definitively in the downtrend that they've been stuck in for months now. How management opts to use that huge cash balance in 2013 will to determine this stocks trajectory. But for now, I'd recommend staying arm's length away from Elan. To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr. -- Written by Jonas Elmerraji in Baltimore.
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