STOCKS JUMP ON MASS. RACE FALLOUT

Stocks rally as Brown seems to be the leading candidate in Mass.

If it turns out that Brown loses, I predict stocks will drop tomorrow and the rest of the week.

Also note the hubris coming from Pelosi as shown in this article.
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As Election Looms, Democrats Scramble Over Health Care

By: Reuters and AP

Democrats prepared for the worst and hoped for the best Tuesday, as the fate of President Barack Obama's health care overhaul hung on the outcome of a Massachusetts election that was too close to call.

If Republican state Sen. Scott Brown defeats Democratic Attorney General Martha Coakley, it would put the seat held by the late Sen. Edward M. Kennedy in the hands of a committed opponent of the bill, depriving Democrats of the 60-vote majority needed to pass health care in the Senate.

Latest opinion polls suggest Brown could defeat Coakley, which would be a huge upset in this traditionally liberal New England state.

Voting started at 7 am EST and polls will stay open until 8 p.m. EST. Results could take a few hours to emerge after polls close.

Health-care stocks rallied Tuesday on speculation that the health-care bill could be derailed by a Brown victory. The S&P 500 index rose more than 1 percent on Tuesday, led by gains in health care stocks. Even with the versions of reform seen as investor-friendly by market participants, analysts and traders agree that blocking a reform could be mildly positive for health stocks.

Health care was at the top of the agenda Tuesday for House Speaker Nancy Pelosi, who scheduled meetings with her top lieutenants and the full Democratic caucus. The evening meeting with rank-and-file Democrats would coincide with the closing of the polls in Massachusetts.

Pelosi, D-Calif., says there will be no wavering on health care. "Let's remove all doubt," Pelosi told reporters Monday in her hometown of San Francisco. "We will have health care one way or another."