These stocks may be in trouble if Clinton wins

Political uncertainty roils Wall Street
Political uncertainty roils Wall Street

Wall Street may be rooting for a Hillary Clinton victory on Tuesday, but certain pockets of the stock market could still suffer if that happens.

By contrast, a Donald Trump win could send the broader stock market -- the S&P 500 -- immediately plunging 3% to 5%, according to Citigroup. Investors hate uncertainty, and many feel Trump's wildcard nature would bring lots of it.

Nervousness has crept back into the market in recent days amid new polls that suggest Clinton's chances of winning have dropped. The S&P 500 suffered its first eight-day losing streak since October 2008 (yes, that 2008) and CNNMoney's Fear & Greed Index is flashing "extreme fear."

But a recent UBS report warns that the first female U.S. president could also spell trouble, specifically for the following industries:

Pharma/Biotech: Clinton has long been a thorn in the side of the healthcare industry. The biggest concern among investors is Clinton's promise to crack down on rising drug prices, especially the recent instances that have caught public attention (see: Daraprim, EpiPen). Clinton has also proposed allowing Medicare to negotiate directly with drug makers because it would likely cut into profits.

Food, beverage & tobacco: Watch out for tougher rules if the Democrats have a very good night on Tuesday. UBS warns that a Clinton White House backed by a Democratic Congress could fuel more aggressive regulation of tobacco, food and beverage companies due to health concerns.

Energy: Not only have Democrats pushed to help cleaner energy alternatives like solar and wind, but there's the threat of tougher regulation, especially compared with Trump's promise to roll back rules. Some fear a ban or threatened ban of fracking. Clinton also infamously said, "We're going to put a lot of coal miners and coal companies out of business."

Banks: The worst-case scenario would be a Democratic sweep, which UBS said would allow liberals to "push for bank break-ups" and more regulation. Even if the Democrats only win the Senate, that would still give big-bank critic Elizabeth Warren a say on appointments to lead powerful watchdogs like the SEC and Consumer Financial Protection Bureau.

For each of these industries, UBS said that the biggest caveat is if the Republicans retain control Congress. Then the effect would be "neutral," because it would offer more of the status quo.

clinton trump markets

Related: Extreme fear is back on Wall Street. Blame the election

A Trump victory also leaves some specific industries more vulnerable to Republican policy proposals.

Medical insurers: A President Trump means that struggling Obamacare would not receive support like the Medicaid expansion Clinton has called for. Already-hurting insurers could be pressured further if Trump and the Republicans are able to repeal Obamacare or even eliminate the health exchanges and/or limit Medicaid coverage.

Drug retailers: All of the Obamacare uncertainty would be bad news for drugstores. UBS said it would be a "negative" for this group if Obamacare is repealed and no substitute coverage is provided.

Autos: Trump has promised to slap a 35% tax on Ford's (F) cars that are made in Mexico and sold in the U.S. UBS warns that such tariffs would be bad news for auto makers that "source some vehicles sold in the U.S. from Mexico."

The same is true of Trump's plans to renegotiate or terminate NAFTA, the free trade deal that allows Ford and others to ship cars duty-free across borders. These concerns have already put downward pressure on shares of Kansas City Southern (KSU), a railroad company that ships lots of goods (including cars) between the U.S. and Mexico.

CNNMoney Sponsors