Gun stocks rally amid nationwide protests and looting
Gun stockssurged through Monday's session after several of the weekend's police-brutality proteststurned violent.
- Smith & Wesson climbed as much as 28%, while Taser-manufacturer Axon Enterprises jumped as much as 21%. Sturm Ruger gained 12.5%.
- Demonstrations in response to the death of George Floyd escalated to feature looting, police violence, and property damage throughout the weekend. Gun stocks typically jump when investors fear near-term firearm regulation.
- Gunmakers had already enjoyed hefty gains through May.
Sturm Ruger's CEO attributed a 37% leap in distributor sales to "the impact of state-level restrictions and heightened concern for personal protection" related to the coronavirus pandemic.
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Gun stocks skyrocketed on Monday following a weekend of police-brutality protests and looting throughout the US.
Gunmaker Smith & Wesson soared as much as 28% through the session, while Axon Enterprises, which makes the Taser stun-gun, leaped 21%. Sturm Ruger gained as much as 12.5%. All three firms cut some of their morning gains later in the day.
Demonstrations in response to the death of George Floyd escalated over the weekend, with people starting fires, looting businesses, and being involved in violent encounters with police officers. Firearm sales typically rise in the wake of civil unrest or renewed fear of federal gun-control legislation.
Gun manufacturers have all enjoyed strong gains in recent weeks as Americans flock back to gun stores amid economic reopening. Sturm Ruger's distributor sales surged 37% through the first quarter, CEO Christopher Killoy said in a May 7 earnings call, citing "the impact of state-level restrictions and heightened concern for personal protection" related to the coronavirus pandemic.
Smith & Wesson may have also benefited from its continued spinoff from American Outdoor Brands. Monday marked the first session that the gunmaker traded under the new ticker SWBI, having previously been listed on the Nasdaq exchange with the symbol AOBC.
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