Wal-mart (WMT) Sells Out of Rifles as Many Expect Revamped Gun Legislation

December 19, 2012 3:52 PM EST
Wal-mart (NYSE: WMT) took the opposite action of Dick's Sporting Goods (NYSE: DKS) when it comes to selling sporting rifles: none.

Bloomberg notes today that the large retailer is out of semi-automatic rifles at many locations. In addition, since President Obama began endorsing sweeping gun legislation, the price of handgun clips are ripping higher on online sites like eBay (Nasdaq: EBAY).

News comes just days after the tragic shooting in Newtown, CT, which killed 26 since, most of them children.

Wal-mart doesn't sell guns online, requiring that users enter a zip code to see if certain products are available at a local store.

On Tuesday, Dick's said it would halt rifle sales at all stores out of respect for the Sandy Hook school shootings. All guns and ammo were removed from the store closest to Newtown.

Traders will also be watching Cabela's, which derives 41 percent of revs from the sales of hunting equipment, including firearms and ammo.

Smith & Wesson (Nasdaq: SWHC) and Strum Ruger (NYSE: RGR) have been hit over the last several sessions, and Olin Corp. (NYSE: OLN) is also down since last Friday. All three produce sporting rifles, with Olin responsible for the Winchester brand.

Today, Wal-mart is down 1.1 percent.

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