NEW YORK ( TheStreet) -- The markets closed Friday virtually unchanged ahead of next week's midterm elections.

The Dow Jones Industrial Average was up 4.54, or 0.04%, to 11, 118.49 while the S&P 500 slipped 0.52, or 0.04%, to 1,183.26. The Nasdaq added 0.04, or 0.00%, to 2,507.41.

The trading panel on CNBC's "Fast Money" TV show, focused on reports of the interception of two air-cargo packages carrying explosive materials that were bound for the U.S. from Yemen.

For a breakout of some stocks from a recent "Fast Money" TV show, check out Dan Fitzpatrick's "3 Stocks I Saw on TV."

3 Stocks I Saw on TV

Melissa Lee, the moderator of the show, asked the panel to comment on the market reaction to the reports.

Steve Grasso said there was no dumping of stocks as the market took a wait-and-see approach to the developments.

Guy Adami said the incident added fuel to what he suspects will be a down week along with other events such as the mid-term elections and a Fed meeting.

Karen Finerman said the explosive packages reports alone wouldn't make her a buyer of puts. Brian Kelly said he thought the markets looked stronger during the day than he had expected.

Adami said there some stocks that hung in there quite well, such as IBM ( IBM - Get Report) and Oracle ( ORCL - Get Report).

Will the indicent raise security costs for air cargo carriers like UPS ( UPS - Get Report) and Fedex ( FDX - Get Report)?

Arthur Hatfield, an analyst with Morgan Keegan, downplayed the impact of the terrorist threat on the carriers. He said it was remarkable that the packages were flagged so quickly and removed from the system. He said the carriers are always on the lookout for suspicious packages and do a lot of work internally.

He said Fedex could benefit from low inventories over the holiday season.

Lee shifted the discussion to the impact of the upcoming elections and the Fed's meeting. Kelly said he was going to buy what the Fed is buying: long-term bonds through iShares Barclays 20+ ( TLT - Get Report).

Grasso and Finerman said the market was ripe for a pullback. Finerman said the market has been trading for weeks on the same news on the elections and quantitative easing. Adami said he sensed a correction is coming but conceded the market has shrugged off every reason to go lower. Weiss said the Fed's move will impact the earnings powers of the banks which are focused on the yield curve.

As for the impact from midterm elections and a Republican takeover of the House, Grasso said he would focus on companies in the health care space that rely on Medicare and Medicaid funding.

He said the prospects of cuts have him selling stocks such as Pfizer ( PFE - Get Report) and Merck ( MRK - Get Report).

Kelly said he would be a buyer of Tidewater ( TDW) on the prospects of the lifting of the oil drilling moratorium. Weiss said he liked Allscripts ( MDRX - Get Report), which he believes will do well regardless of the election results.

In the final trades, Kelly liked TD Bank Financial Group ( TD - Get Report). Adami liked L3 Communications ( LLL). Finerman liked Carefusion ( CFN). Grasso liked Raytheon ( RTN). Weiss liked UPS ( UPS - Get Report)

--Written by David Tong in San Francisco.

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