Play Your Local Stocks for a Bush or Kerry Win

Bush Index

Sector: Pharmaceuticals
Washington angle: ZymoGenetics (ZGEN Quote), Dendreon (DNDN Quote) and Icos (ICOS Quote)

ISI Group analysts contend the drug sector has by far the greatest stake in the election outcome because the next president will direct the rules that determine how the new Medicare drug benefit is implemented. The Bush administration is considered far more friendly to Big Pharma than a Kerry administration might be. Bush would also attempt to fight off drug reimportation, which would slash drugmakers' profits, as well as Congress-dictated drug price controls.

ZymoGenetics and Icos are biotechnology companies dependent on the prospect for high drug prices in their partnerships with large drugmakers. The former has marketed its key products, aimed at diabetes and blood coagulation therapies, through Novo Nordisk (NVO Quote). The latter has marketed its key product, the erectile dysfunction therapy Cialis, through Eli Lilly (LLY Quote). Dendreon is a biotech focused on cancer; its lead product candidate, Provenge, aimed at prostate cancer, is in phase III clinical trials.

Sector: Defense
Washington angle: Boeing (BA Quote) and Esterline Technologies (ESL Quote)

Boeing has moved its headquarters to Chicago, but its aircraft manufacturing plants still provide a large percentage of the state's employment. Spending on jet fighters and satellites will rise in either candidate's administration, but it figures to gain more from Bush. Esterline makes avionics, controls and sensors for military and commercial aircraft, as well as electronic warfare modules and components for tank and mortar ordnance.