03 October 2017•Update: 03 October 2017
By Barry Eitel
SAN FRANCISCO
Stocks of gun manufacturers jumped Monday following the deadliest mass shooting in modern American history the previous night.
From his room on the 32nd floor of the Mandalay Bay Resort hotel in Las Vegas, a gunman killed at least 58 people and injured more than 500 others at a country music festival.
Alleged shooter Stephen Paddock killed himself before he could be arrested and had 10 rifles in his room, according to police.
Shares of gun manufacturer Sturm Ruger closed Monday up nearly 3.5 percent at $53.50. American Outdoor Brands, formally Smith & Wesson, rose more than 3 percent to close at $15.74. Olin, which owns ammunition brand Winchester, saw its stock spike 6.6 percent to an all-time high of $36.52.
Analysts believe the rally signals a belief by investors that lawmakers will attempt to push gun control legislation and the new concern could lead to a spike in the market for guns.
Similar rallies occurred after another mass shooting in Orlando last summer, where 49 victims were killed, and the 2012 Sandy Hook Elementary School shooting. Although tighter gun restrictions never materialized after those shootings, gun sales climbed during the tenure of former President Barack Obama as gun buyers worried over regulations on sales.
Gun companies’ stocks declined following the election of President Donald Trump who is viewed as more amenable to gun owners.
"It was an act of pure evil," Trump said Monday of the shooting in Las Vegas, but he did not respond to questions about gun control legislation.
Shares of Las Vegas casino companies plunged Monday. MGM Resorts, which owns Mandalay Bay, dipped nearly 6 percent to close at $30.77.
