Gun Sales Are Down, So Why Did Gun Stocks Just Go Up?
It used to be that after every mass shooting, stocks of gunmakers would rise because Wall Street expected enthusiasts to flock to stores. That era may be over.
Rifles for sale at a gun shop in Merrimack, New Hampshire, on Nov. 5, 2016.
Photographer: DOMINICK REUTER/AFP/Getty Images
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Shares of firearms companies rose on Thursday morning after a gun-fueled massacre at a Florida high school left 17 dead and 14 injured.
At first, gun stocks reacted in their usual macabre fashion, climbing on expectations of a fear-driven surge in firearms purchases. But after jumping 4.3 percent in early trading, American Outdoor Brands Corp., formerly known as Smith & Wesson, was up only 1.6 percent by the afternoon. Sturm Ruger & Co Inc. erased early gains.