Gun stocks misfire as investors eye U.S. government gridlock

Big 5 Sporting Goods

04/11/2020 17:23

** Gun stocks fall sharply Weds as investors bet the U.S.
elections would result in a divided government, potentially
hampering legislation for more stringent gun control
    ** Democratic challenger Joe Biden opened up narrow leads in
battleground states Wisconsin and Michigan as mail-in ballot
count continues  urn:newsml:reuters.com:*:nL1N2HQ0VQ
    ** Firearm sales have surged this year amid COVID-19 fears,
civil unrest, and as gun owners accelerated purchases
anticipating potentially more restrictive regulations if Biden
is elected, as they had done under President Obama
    ** But with Republicans so far appearing to retain Senate
control, stricter gun control legislation could be stymied
    ** Smith & Wesson  SWBI.O  shares down 12.4% at $15.40 and
Sturm Ruger & Co Inc  RGR.N  off 9.7% to $63.65
    ** Vista Outdoor  VSTO.N , which is buying bankrupt gunmaker
Remington's ammunition business, down 7.2% to $19.51
    ** With Weds moves, SWBI up 115.9%, RGR up 43.5% and VSTO up
160.6% YTD

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper.tr.com@reuters.net
lance.tupper@tr.com))