TheStreet's Jim Cramer highlighted two healthcare companies whose stocks were going in different directions Tuesday, the day Merck & Co and Eli Lilly presented their third-quarter 2016 results.
Merck stock is up about 2% after the company beat on earnings per share and revenue expectations. Meanwhile, Eli Lilly reported a "first class miss," said Mr Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment.
Mr Cramer said he's surprised Merck stock isn't higher considering the really good quarter. Perhaps management was too conservative with its guidance, he wondered. But there is a bigger problem affecting Merck, Lilly and healthcare stocks in general -- presidential politics. He said investors are wondering if there will be more of a push to keep drug prices lower in the next administration. They are thus hesitant to own biotech and pharmaceutical stocks until after the election. Until then, the sector will remain pressured, he concluded.
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