Gun stocks rise as Obama presses for reform
Investors are betting that strong gun sales will continue in anticipation of a crackdown on assault weapons.
Wall Street is betting that demand for guns will continue to rise ahead of a crackdown on sales of military-style weapons that many expect Obama to push for in the aftermath of Friday's mass murder at a Connecticut elementary school.
Smith & Wesson traded at $8.47 Wednesday afternoon, a gain of nearly 9%. Sturm Ruger jumped about 6% to $43.06. Shares of both stocks have been in a downturn from early December. Still, Smith & Wesson's shares have almost doubled this year while Sturm Ruger has surged more than 28%.
In a press conference in Washington, D.C. Wednesday, Obama announced that Vice President Joe Biden would lead the task force focusing on ways to reduce gun violence. He vowed that the group would not be "some Washington commission" whose recommendations would soon be forgotten. Biden's group is tasked with developing a set of "concrete proposals" due no later than January, according to Obama.
"This time the words need to lead to action," he said. "The fact that this problem is complicated can no longer be an excuse for doing nothing."
The slaughter of 20 young children and six educators at Sandy Hook Elementary School in Newtown, Conn., has shaken the gun industry and society as a whole to its core. Gun control has suddenly rocketed to the forefront of discussions in Washington and in big business. Cerberus Capital, a private equity firm, announced plans Tuesday to sell gun manufacturer Freedom Group, whose products include the .223 caliber Bushmaster AR-15 rifle used in the killings. Some retailers, such as Dick's Sporting Goods (DKS), are pulling some semi-automatic weapons from their shelves.
It's unclear whether Cerberus will be able to find a buyer, or for how long retailers will suspend sales of what the industry calls "modern sporting rifles." The National Rifle Association and the lesser-known National Shooting Sports Federation, which is also based in Newton, Conn., are powerful voices in this national debate. The NRA is planning what it describes as a "major" announcement Friday and is promising "meaningful contributions to help make sure this never happens again."
Obama reiterated his support Wednesday for the rights of law-abiding citizens to own firearms under the Second Amendment, noting a tradition of gun ownership in the U.S. that goes back generations. But many people are starting to question whether this right extends to military-style weapons and high-capacity ammunition clips. Both sides agree on the need to keep weapons out of the hands of dangerous mentally ill people.
Whether these sorts of actions could have averted the tragedy in Newtown, Conn., is tough to say. Police say shooter Adam Lanza used his mother's weapons to carry out his heinous act after murdering her in the home they shared. Gun owners often argue that all the gun control laws in the world won't stop a determined madman from hurting innocent people. But, as Obama noted, that view is a cop-out.
"We won't prevent them all, but that cannot be an excuse not to try," he said.
More from Money Now
Clearly, something must change.
The nutjobs in Washington will never figure this out.
For schools (including the ones that have security).....just close the doors at first bell. They can always be opened from inside since they aren't locked. If a parent comes by they can ring a bell to enter. School and emergency personnel can use a cardreader or have a key/code to enter.
They already scan an individuals background prior to selling a weapon. Find out a way to cut off sales of certain weapons to individuals housing mentally disabled persons.
Thats my 2 cents.............People are naive to believe by simply cutting off sales of guns will stop these type of crimes. Look at history, including oversees right now.....All empires eventually fall.
Our President, a thoughtful man and loving father wants to make the world a safer place for all the children.....a laudable intention.
26 humans are killed by a sick individual and the rights of the majority are at risk.
Thousands of the unborn are snuffed out, and they call it 'Choice."
The media in this country have become an appendage of the White House and the Democratic National Party. They are the spokespeople for Obama and his leftist agenda. They refuse to tell the truth about the failed liberal policies in Washington....NBC for example will spin,distort or blackout everything and anything that doesn't fit in with their liberal ideology... The liberal media is more of being in the business of propaganda and conditioning then being anything close to a legitimate news source with checks and balances. This sort political brainwashing is straight out of the playbook of cold war communist Russia where it's citizens were kept in the dark of the truth and the facts.We have not reached that point "yet" but we are well on the way. The liberals now are demanding gun control and bans, and are using the Newtown tragedy as a springboard and catalyst for their ideology... Because of the sheer evil of this atrocity...it's easy to pull the wool over the eyes of many citizens on the subject of gun control again with the help of media propaganda...But from the facts that is now known from the last ban on these kinds of semi automatic weapons these bans were a dismal failure in everyway..and these liberals know this..this is not any theory about why these bans won't work these are now a proven facts. Liberals will continue to demonize guns and the NRA as the culprit of these evil crimes,while suppressing the truth,facts and the statistics of the real reasons why our society has become so warped, in recent years. The WH and the media has done a good job in the suppression of the "Fast and furious" debacle where this administration deliberately bought thousands of guns from licensed Texas gun store owners and gave these weapons to Mexican thugs in a effort to "frame" the gun store owners in a highly planned conspiracy to build a case for gun control,.. The result of this mindless scheme was the death of one of our American border guards and the death of at least hundreds of innocent Mexican citizens...I believe the like's of Biden,Feinstein,and Bloomberg just to name a few, will be the voice's heard the loudest in Washington,but they are only interested in the one-sided shallow concept of Gun controls and ban's that have already been proved to be ineffective and worthless.
Some madman gets ready to go to a school to cause great harm to those there with a gun. But he stops before he does this, because he remembers its against the law to carry a gun on school grounds.
Im not sure why people think laws will make this go away. People who commit these crimes do not think about the laws they are breaking while they are doing it, they dont care. There is a city near me that has a law stemming back many years that requies every home owner to have a gun, i believe it states a long gun. They dont have to many home invasions and burglary's. They also dont have murders connected to home owners owning guns. The city is Kennesaw,Ga.
I think people are afraid. People who dont grow up around guns are afraid of them. Some TV shows paint a gun owner as a criminal. We all dont like certain things, If we were all the same we would be robots. This is what makes america great. Freedom has never been free. It cost, and sometimes it cost a great deal. If you do not wish to be free, there is nothing holding you back from going somewhere else. Living free is a responsibility some americans do not want. They would rather be told what to do and when to do it.
If you're a law maker, you think everything can be solved with more laws. Over the years there have been tons of different laws about guns. None of them have had any effect.
Gun control laws don't work. All they do is restrict law abiding people.
The problem isn't "gun violence". It's just "violence".
When they come fo rmy guns they better bring friends, body bags and several days of rations.
How many millions of gun owners are legal, responsible, tax paying citizens who have done NOTHING wrong?
Even with the military force, they are greatly outnumbered and it will take a huge act of war crimes and treason against the people to take our firearms.
Even then, I can gaurantee that not all military or police members will stand for shooting american citizens to take away our weapons.
You may have to stand up for what you believe one day. Don't let Obama the socialist phuck scare you into believing anything else.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market finished an upbeat week on a mixed note. The S&P 500 added just over a point, holding its weekly gain at 1.0% while the Nasdaq lost 0.4%.
The major averages began the day on an upbeat note, but relinquished their opening gains during the first 90 minutes of action. The early sentiment was boosted by a better-than-expected nonfarm payrolls report for February (175K versus Briefing.com consensus 163K), but a closer look into the report suggested that ... More
More Market News
The solid report comes a month after the retailer closed all of its Canadian operations.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'