Gun Stocks Surge Amidst Obama’s Primetime Message Against Terrorism

guns, pistols, rifle, revolvers, and ammunition

Shares of the two publicly traded gun makers rallied on Monday, a day after President Barack Obama gave a prime-time address calling for a modest reduction in the availability of firearms.

Smith & Wesson SWHC, +7.64%, closed 8% higher and Sturm Ruger & Co. RGR, +5.85% rose 6% on Monday.

Smith & Wesson has climbed 116% this year, and Sturm Ruger has jumped 66%.

Obama on Sunday night said no one on the no-fly list should be able to buy a gun and that it should be harder for people to buy powerful assault weapons like the ones used in the San Bernardino massacre.

With Congress in paralysis on the issue, the logic on Wall Street is that the increased talk of gun restriction will spur more sales.

Source: Marketwatch