Shares of gun makers jumped on Thursday after the U.S. Supreme Court upheld the right to carry guns in New York, signaling a favorable outcome for the industry following the recent shootings of mass with calls for more restrictive gun control laws.
Smith & Wesson Brands led the rally, jumping as high as 7.6% to hit a high after a decision to strike down a New York law that required people to show a particular need to carry a handgun in public.
Sturm Ruger & Co. climbed 4.4% and Ammo 4.3%, while Vista Outdoor gained 4.6%.
New York Governor Kathy Hochul weighed in on the decision calling the decision “scary” and added that it takes away the right to protect citizens.
The decision was the court’s biggest decision on gun rights in more than a decade.
The decision follows recent mass shootings that killed more than 30 people in a grocery store in Buffalo, New York, and an elementary school in Uvalde, Texas.
The Senate is set to approve new gun safety measures in response to these killings.
Stocks related to arms and ammunition manufacturers are usually bought individually because there are few indices and exchange-traded funds that hold them as a group, and many institutions are not allowed to buy them.
In most cases, specialized munitions funds primarily own large federal contractors like Northrop Grumman, Lockheed Martin and Raytheon Technologies.
Unemployment claims fall slightly
U.S. jobless claims last week plateaued near a five-month high, suggesting labor market tensions may be starting to ease.
Initial jobless claims fell by 2,000 to 229,000 in the week ended June 18, Labor Department data showed Thursday.
The previous week’s figure was revised slightly upwards. The median estimate from a Bloomberg survey of economists called for 226,000 applications.
The four-week moving average for jobless claims, a measure that dampens some of the volatility in the series, rose to 223,500, the highest since late January.
While the labor market remains strong and unemployment low, there are some signs of flagging.
Several companies, including JPMorgan Chase and Coinbase Global Inc., have announced layoffs in recent weeks.
Meanwhile, recession fears grow after the Federal Reserve hikes interest rates by the most since 1994 and signaled further tightening in an effort to control inflation.
On an unadjusted basis, initial inquiries also fell slightly. Claims fell in Illinois and Florida, while they rose in Michigan.
Continuing claims for state benefits were also little changed at 1.32 million in the week ended June 11.
From thread reports