Jun 14, 2017

Gun stocks jump on Wednesday's shootings

American gun manufacturers watched their shares climb on Wednesday, in the wake of mass shootings in both Virginia and San Francisco.

Data: Money.net; Chart: Andrew Witherspoon / Axios

Why it happens: Firearms aficionados often purchase new product after high-profile gun crimes, out of fear that the publicity will result in stricter regulations. Traders today still expect this trend to persist, despite an NRA-friendly White House and no federal firearms laws being passed in the wake of Sandy Hook, San Bernadino, the Pulse Nightclub, etc.

What's missing: America's largest firearms manufacturer, Remington Outdoor Co. (f.k.a. Freedom Group), does not have public stock, as it is owned by private equity firm Cerberus Capital Management.

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