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Halftime: GOP May Not Be Positive for These Stocks

Stocks pushed higher Monday, as some investors expect a Republican takeover of the US House and possibly the Senate, as well. While some think such gridlock would be good for stocks, Republican control might not be all positives, said one analyst on Monday's "Fast Money Halftime Report."

With sizable state budget deficits, Republicans leaders could make cuts to health care, said Charles Boorady of Credit Suisse. If elected, Republicans may also seek to reduce Medicare and Medicaid spending. As a result, businesses that rely on funding from said government programs may be in jeopardy. Boorady recommends investing in health care businesses with diversified funding sources:

Boorady's Top Health Care Picks
UnitedHealth Group
WellPoint
Coventry Health Care
Humana

Boorady also made the case that state elections are just as important to the future of health care reform as Congressional contests are. He noted that health care reform delegated a lot of responsibility to the states, including the creation of state insurance exchanges by 2014. With 37 governors up for election, Boorady thinks the results could have a meaningful impact on health care. Races in the most populous states — California, Florida, Ohio and Texas — are the races that matter most.

Watch the video to see the full conversation with Boorady—it starts at 1:00.

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Total Votes:

Not a Scientific Survey. Results may not total 100% due to rounding.

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SECURITY STOCKS PUSH HIGHER

Following terror threats on US-bound planes Friday, many airports are beefing up security measures by more carefully screening cargo. As a result, a number of security-type stocks pushed higher Monday, including Raytheon .

Steve Grasso of Stuart Frankel likes the Waltham, Mass.-based aerospace/defense name. Grasso thinks it has room on the upside, but recommends selling should the stock drop to below $46 a share.

Meanwhile, OSI Systems , a semiconductor that creates homeland security products, posted a 52-week high Monday.

Watch the video to see the full conversation on security stocks.

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UNUSUAL ACTIVITY

In the options space, optionMONSTER.com's Pete Najarian spotted some "Unusual Activity" in the junior gold miners exchange-traded fund. Najarian said there was activity in the Nov. 36 and 38 calls and those traders are back Monday. In the first 20 minutes of trading, more than 10,000 contracts changed hands — more than double of what Najarian normally sees. There is very limited upside, however.

Brian Kelly, founder of Kanundrum Capital, likes GDXJ. He would also look at the platnium group metals, like Stillwater Mining .

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CALL TO THE FLOOR

Verisk Analytics CEO Frank Coyne stopped by the "Fast Money" studios Monday and spoke with the traders about how his company's outlook.

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CALL THE CLOSE

Kelly likes the market at current levels and is a buyer.

Steve Grasso of Stuart Frankel, on the other hand, does not like the market. He recommends selling the pops.

"I like the market right here," said Najarian.

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Trader disclosure: On Nov. 1, 2010, the day this post was published, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Zachary Karabell owns (BP), (WFR) and (POT). Pete Najarian owns (GDXJ), (MRVL) calls, (PFE) and (F) bonds. Steve Grasso owns (ASTM), (BA), (BAC), (C), (CSCO), (JPM), (LPX), (MO), (MOT), (NDAQ), (PFE) and (PRST).

For Brian Kelly:
Accounts managed by Kanundrum Capital own (POT)
Accounts managed by Kanundrum Capital own (GLD)
Accounts managed by Kanundrum Capital own (GDXJ)
Accounts managed by Kanundrum Capital own (SWC)
Accounts managed by Kanundrum Capital own (MCP)
Accounts managed by Kanundrum Capital own (JJG)
Accounts managed by Kanundrum Capital own (JO)
Accounts managed by Kanundrum Capital own (SGG)
Accounts managed by Kanundrum Capital own (NIB)
Accounts managed by Kanundrum Capital own (TLT)
Accounts managed by Kanundrum Capital own (TIP)
Accounts managed by Kanundrum Capital own Euros)
Accounts managed by Kanundrum Capital are short Japanese Yen

For Steve Grasso:
Stuart Frankel & Co and it’s partners own (COG)
Stuart Frankel & Co and it’s partners own (CUBA)
Stuart Frankel & Co and it’s partners own (GERN)
Stuart Frankel & Co and it’s partners own (HSPO)
Stuart Frankel & Co and it’s partners own (MERC)
Stuart Frankel & Co and it’s partners own (MGM)
Stuart Frankel & Co and it’s partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NYX)
Stuart Frankel & Co and it’s partners own (OPEN)
Stuart Frankel & Co and it’s partners own (PDE)
Stuart Frankel & Co and it’s partners own (PFE)
Stuart Frankel & Co and it’s partners own (PRST)
Stuart Frankel & Co and it’s partners own (RDC)
Stuart Frankel & Co and it’s partners own (TLM)
Stuart Frankel & Co and it’s partners own (XRX)
Stuart Frankel & Co and it’s partners own (SDS)
Stuart Frankel & Co and it’s partners are short (QQQQ)
Stuart Frankel & Co and it’s partners are short (MCD)

For Zachary Karabell:
RiverTwice Capital owns (GLW)
RiverTwice Capital owns (POT)
RiverTwice Capital owns (IBM)

For Charles Boorady:
Credit Suisse makes a market in (CNC), (AGP), (MOH),
(GTS), (CNC), (AGP), (AET), (HUM), (UNH), (WLP) currently is, or was during the 12-month periods, a client of Credit Suisse
Credit Suisse has managed a public offering of securities for (CNC), (AET), (UNH), (WLP) within the past 12 months
Credit Suisse provided non-investment banking services to (AGP), (AET), (HUM), (WLP) within the past 12 months
Credit Suisse provided investment banking services to (GTS), (CNC), (AGP), (AET), (HUM), (UNH), (WLP) within the past 12 months.
Credit Suisse has received investment banking related compensation from (GTS), (CNC), (AET), (UNH), (WLP) within the past 12 months.
Credit Suisse intends to seek investment banking related compensation from (GTS), (CNC), (AGP), (AET), (CVH), (HUM), (UNH), (WLP), (MOH) within the next 3 months
Credit Suisse has received compensation for products and services other than investment banking services from (AET), (HUM), (WLP) within the past 12 months.

CNBC.com with wires.

Symbol
Price
 
Change
%Change
HCA
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HUM
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OSIS
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RTN
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SJR.B
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UNH
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VRSK
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WLP
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MV J GLD MIN
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