Gun manufacturer stocks rise after weekend mass shootings and renewed calls for tougher firearm laws

Mark O'Connor fills out his Federal background check paperwork as he purchases a handgun at the K&W Gunworks store on the day that U.S. President Barack Obama in Washington, DC announced his executive action on guns on January 5, 2016 in Delray Beach, Florida

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Mark O’Connor fills out his Federal background check paperwork as he purchases a handgun at the K&W Gunworks store on the day that U.S. President Barack Obama in Washington, DC announced his executive action on guns on January 5, 2016 in Delray Beach, Florida
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Joe Raedle/Getty Images

Shares of gun manufacturers American Outdoor Brands and Sturm, Ruger & Co. both rose Monday morning following two weekend shootings that left a combined 29 people dead.

A gunman opened fire in an El Paso, Texas Wal-mart Saturday, killing 20 people and injuring dozens more. Less than 24 hours later, a man in Dayton, Ohio killed nine people and wounded several others.

American Outdoor Brands, formerly Smith & Wesson, rose as much as 7.3% Monday. Sturm Ruger jumped as much as 3.1%. Both companies have since erased their gains, trading 1.7% and 0.1% higher as of 11:15a.m. ET, respectively.

President Trump commented on the events Monday, calling for “bipartisan solutions” to combat gun violence and blaming video games, mental illness and racism for the shootings. Trump didn’t call for federal universal background checks, a gun-control measure with strong bipartisan support. He instead suggested a collaboration between state and federal agencies to “develop tools that can detect mass shooters before they strike.”

The weekend events brought the number of US mass shootings this year to 255, according to the Gun Violence Archive. The Justice Department is investigating the El Paso incident as an act of domestic terror.

Gun stocks typically rise after mass shootings, as renewed calls for tougher firearms laws increase speculation that people would want to buy more weapons before regulations take effect.

American Outdoor Brands is down about 31% year-to-date. The company traded at $8.78 per share as of 11:15 a.m. ET Monday.

Sturm Ruger is down about 13% year-to-date. The company traded at $46.03 per share as of 11:15 a.m. ET Monday.

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