TheStreet's Jim Cramer highlighted two health care companies whose stocks are going in different directions Tuesday.
Merck (MRK) - Get Report stock is up about 2% after the company beat on earnings per share and revenue expectations. Meanwhile, Eli Lilly (LLY) - Get Report reported a "first class miss," said Cramer, co-manager of the Action Alerts PLUS portfolio, said on CNBC's "Mad Dash" segment.
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 health care stocks in general -- presidential politics.
Cramer 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.
At the time of publication, Cramer's Action Alerts PLUS had no position in companies mentioned.