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Halftime: What John Boehner Means for Wall Street

Wednesday, 5 Jan 2011 | 1:43 PM ET

John Boehner (R-OH) was elected speaker of the U.S. House of Representatives on Wednesday, but what will this mean for investors?

Ed Mills, a legislation analyst at FBR Capital Markets called Boehner a "net positive" for investors; "a skilled leader who will get some wins." However, Mills also said the Tea Party "believes compromise is a dirty word," which will limit his ability to get a lot done.

As a result, "investors shouldn't set themselves up for disappointment as the House moves through high profile pieces of legislation that will (probably) never see the light of day in the (Democrat-controlled) Senate," Mills said.

112th Congress & Your Money
The "Fast Money" traders discuss whether incoming House Speaker John Boehner will be good for investors. They're joined by Ed Mills of FBR Capital Markets.

Of all the initiatives, the one thing that Mills says does have a chance of passing is a "tax holiday to allow the repatriation of foreign earnings. Especially if the new money coming in goes toward infrastructure spending."

Joe Terranova, chief market strategist at Virtus Investment Partners, also thinks Boehner's leadership will be a positive for stocks. "Repatriation would be positive for a company like Microsoft," Terranova says.

Steve Cortes, founder of Veracruz, joked that Boehner's rise to speaker of the House bodes well for all who enjoy a good tan.

What do you think? We want to know!

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UNUSUAL ACTIVITY

Of the 16 million contracts that exchanged hands on Monday, 2 million were in Bank of America and Citigroup, said options trader Pete Najarian.

On Wednesday, the love for the bank stocks continues, especially in the options market. Najarian said there is heavy buying of the Apr. 15 and Apr. 18 calls. He noted they are "very large block trades" being made by institutional investors.

Citi itself has been on fire. The financial institution alone traded more than a million calls on Monday.

Najarian likes both BAC and C right now. He's in both names and thinks they have room to the upside.

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CALL THE CLOSE

As the "Halftime Report" came to a close, the traders revealed what moves they plan to make on Wednesday.

Najarian thinks the market could push to the upside. He also likes technology stocks right now.

Speaking of tech, Terranova likes Skyworks Solutions as a second derivative off Qualcomm .

Cortes recommends selling gold and buying Goldman Sachs .

"Buy ag stocks," said Patty Edwards, chief investment officer at Trutina Financial, including fertilizer maker Potash .

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Trader disclosure: On January 5, 2010, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian owns (F) bonds; Pete Najarian owns (AXP); Pete Najarian owns (V) call spreads; Pete Najarian owns (HPQ) call spreads; Pete Najarian owns (YHOO); Pete Najarian owns (MSFT) call spreads; Pete Najarian owns (MS); Pete Najarian owns (C); Pete Najarian owns (BAC) call spreads; Pete Najarian owns (DD) calls; Pete Najarian owns (AKAM) call spreads; Pete Najarian owns (TCK) call spreads; Pete Najarian owns (WLT) call spreads; Cortes owns (TSN); Cortes owns (EXC); Cortes is short (LVS); Cortes is short (MOS); Cortes is short (BCS); Cortes is short (XRT) vs. S&P; Cortes is short (XHB) vs. S&P; Cortes is short Gold; Cortes is short Corn; Terranova owns (GM); Terranova owns (C); Terranova owns (VRTS); Terranova owns (UPL); Terranova owns (PEP); Terranova owns (OXY); Terranova owns (GS); Terranova owns (SLW) puts; Terranova owns (GLD) puts; Terranova is short (SLV) futures

For Patty Edwards
Edwards owns (TGT) for clients
Edwards owns (ALK) for clients
Edwards owns (SPY) for clients
Edwards owns (SLV) for clients
Edwards owns (BA) for clients
Edwards owns (AMZN) for clients
Edwards owns (F) for clients
Edwards owns (V) for clients
Edwards owns (JNJ) for clients
Edwards owns (AAPL) for clients
Edwards owns (MSFT) for clients
Edwards owns (GS) for clients
Edwards owns (C) for clients
Edwards owns (POT) for clients
Edwards owns (FXI) for clients

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
Virtus Investment Partners Owns More Than 1% Of (ABAX)
Virtus Investment Partners Owns More Than 1% Of (AMKR)
Virtus Investment Partners Owns More Than 1% Of (CCG)
Virtus Investment Partners Owns More Than 1% Of (CASS)
Virtus Investment Partners Owns More Than 1% Of (CSVI)
Virtus Investment Partners Owns More Than 1% Of (EXR)
Virtus Investment Partners Owns More Than 1% Of (FCFS)
Virtus Investment Partners Owns More Than 1% Of (IGE)
Virtus Investment Partners Owns More Than 1% Of (KRC)
Virtus Investment Partners Owns More Than 1% Of (LDR)
Virtus Investment Partners Owns More Than 1% Of (LPHI)
Virtus Investment Partners Owns More Than 1% Of (NCRI)
Virtus Investment Partners Owns More Than 1% Of (DBV)
Virtus Investment Partners Owns More Than 1% Of (XLB)
Virtus Investment Partners Owns More Than 1% Of (XLV)
Virtus Investment Partners Owns More Than 1% Of (XLP)
Virtus Investment Partners Owns More Than 1% Of (XLY)
Virtus Investment Partners Owns More Than 1% Of (XLE)
Virtus Investment Partners Owns More Than 1% Of (XLI)
Virtus Investment Partners Owns More Than 1% Of (XLK)
Virtus Investment Partners Owns More Than 1% Of (XLU)
Virtus Investment Partners Owns More Than 1% Of (SUBK)
Virtus Investment Partners Owns More Than 1% Of (WDFC)
Virtus Investment Partners Owns More Than 1% Of (YDNT)
Virtus Investment Partners Owns More Than 1% Of (CLB)

For Ed Mills
Mills has no disclosures

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NBC Universal is the parent company of CNBC

CNBC.com with wires.



CNBC.com with wires.

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