Stock in U.S. gunmakers dropped on Thursday after a new Democratic majority in the House of Representatives passed its second bill in as many days tightening restrictions on firearms sales.
American Outdoor Brands, which owns the Smith & Wesson brand, slid 1 percent to $12.67 in New York trading, while Sturm Ruger & Co. tumbled 1.4 percent to $57.32. Congressional Democrats including Rep. James Clyburn, D-S.C., have been advocating closer oversight of gun sales after several mass killings, including the shooting deaths of 17 students at a Florida high school in 2018, 59 people at a Las Vegas concert in 2017, and nine people at a Charleston, S.C., church in 2015.
The bill that passed on a 228-198 vote Thursday, sponsored by Clyburn, would allow 20 days for background checks to be completed, compared with three at present. Twenty-four-year-old Dylann Roof, who was sentenced to death in the Charleston killings, was able to buy a gun he used after the expiration of a three-day waiting period during which the FBI could have blocked the purchase.
“It’s past time for thoughts and prayers,” Clyburn said. “We need action.”
While gunmaker stocks typically jump when regulations tighten, as traders bet that firearms purchases will increase before the rules take effect, the measures are unlikely to pass the Republican-led Senate, and President Trump has been a vocal supporter of Second Amendment rights. Their approval by the House reflects a change in priorities after November’s midterm elections placed Democrats in control for the first time in eight years.
“Passing this commonsense legislation is yet another example of how serious the new majority in the House of Representatives is about taking action to make our communities safer from gun violence,” said former U.S. Rep. Gabrielle Giffords, who stepped down from her Arizona seat after injuries suffered when a gunman attacked a meeting she was holding with constituents in early 2011, killing six people.
“The horrifying frequency with which we watch terrifying scenes unfold in our communities because a dangerous person was able to obtain a gun is devastating — and it’s not normal,” added the one-time lawmaker, who went on to found the Giffords: Courage to Fight Gun Violence advocacy group. “We urge the Senate to follow suit and pass this responsible legislation.”
The National Rifle Association, which represents the firearms industry, was equally click to condemn the legislation. It “punishes law-abiding citizens — not criminals,” the lobbying group said Thursday. “‘Universal’ background checks would affect real people and their ability to defend themselves.”
