By CCN.com: President Trump did more than just trigger his base when he spoke at the NRA’s annual meeting Friday. He also fired up gun stocks when he dropped the surprise announcement that his administration plans to withdraw the U.S. signature from the U.N. Arms Trade Treaty.
Most of the major gun sellers saw their stock prices move higher following the president’s speech.
Speaking to the NRA faithful, Donald Trump warned that far-left Democrats are hell-bent on coming after their guns. He said that they won’t take them under his watch but that the court system could be a problem.
In referring to the Ninth Circuit Court of Appeals, which has ruled against his policies numerous times, Trump said:
“One of the greatest threats to the Second Amendment are activist judges. We’re stuck with activist judges who seek to rewrite our Constitution to force their own radical views onto our country.”
Elsewhere during the speech, Trump yanked the United States out of the United Nations’ Arms Trade Treaty, which regulates weapons sales. The U.S. had signed the treaty during the Obama administration, but Congress had yet to ratify the controversial agreement.
“We will never surrender America’s sovereignty to an unelected, unaccountable, global bureaucracy,” Trump said.
The majority of gun stocks rallied following Trump’s NRA speech, and as a category firearms manufacturers outperformed the wider stock market.
Sturm, Ruger & Co. (RGR) shares jumped 1.43% to $57.41.
American Outdoor Brands Corp (AOBC) – formerly Smith & Wesson – saw its stock price climb 1.37% to $10.
Vista Outdoor Inc. – which currently owns Savage Arms – and ammunition manufacturer National Presto Industries also recorded moderate gains.
Trump’s NRA speech isn’t the only factor that could push gun stocks higher over the medium-term.
Firearms, weapons, and ammunition companies have typically seen their stock prices rise whenever there is a concern that gun rights will be limited.
While Trump helped boost share prices with his speech today, political campaign rhetoric could cause them to move even higher.
For example, presidential candidate Kamala Harris has vowed to crack down on guns if elected president.
“Upon being elected, I will give the United States Congress 100 days to get their act together and have the courage to pass reasonable gun safety laws and if they fail to do it, then I will take executive action.”
And some Democrats lambast her as too pro-gun.
Last modified: July 2, 2020 8:24 PM UTC