Stocks were mixed today on worries that the “fiscal cliff” will not be averted before the end of the year; but gun manufacturer Smith & Wesson saw its share price climb almost 4 percent.
Smith & Wesson (Ticker SWHC), which trades on the NASDAQ Index, initially made gains after its board of directors announced a share buyback plan worth $15 million.
The stock price was undoubtedly driven higher later in the day after details regarding Sen. Dianne Feinstein’s (D-Calif.) “assault weapon” legislation were reported by the Drudge Report. Shares closed at $8.26, up 3.77 percent for the day.
NASDAQ, the second-largest stock exchange in the world, hit a low of 2,951.04 before cutting losses after news broke that the House of Representatives will reconvene on Sunday to resume talks on the “fiscal cliff.”
The index was relatively unchanged, closing at 2,985.91; a slight decline of 0.14 percent.
Gun dealers have experienced a surge in sales over the last few years as many Americans have feared stricter gun laws (similar to the legislation revealed today).
Firearm manufacturers have thus seen their revenues soar and share prices climb as companies like Smith & Wesson reap the benefits of concerned gun enthusiasts.
As the debate over “gun control” heats up, expect to see an even greater demand for guns, and their manufacturers’ stock.