Gunmaker Stocks Rise on Court Ruling - TheStreet

WASHINGTON D.C (

TheStreet

) -- The Supreme Court on Monday ruled that the Second Amendment right to keep and bear arms binds state and local government officials as well as federal officials.

The 5-4 vote, led by Chief Justice John Roberts, invalidates the city of Chicago's 30-year ban on owning handguns. The decision is being touted as the latest victory for gun-rights advocates.

The residents of Chicago and the National Rifle Association challenged the ban after a 2008 Supreme Court ruling struck down a similar handgun ban in the District of Columbia. The 2008 decision held that the Second Amendment protects the rights of an individual to possess arms for self defense, but was applied to only federal laws.

Now that ruling has been extended to states as well. "A provision in the Bill of Rights that protects a right that is fundamental from an American perspective applies equally to the federal government and the states," wrote Justice Samuel Alito, who delivered the court's opinion.

Shares of firearms producers

Smith and Wesson

(SWHC)

and

Sturm, Ruger & Co

(RGR) - Get Report

shot up 5.4% to $4.29 and 2.7% to $15.60, respectively, on the news -- before cooling off after the noon hour. Three hours before the market close, the stocks were trading at $4.21 and $15.30 respectively.

-- Reported by Shanthi Venkataraman in New York.

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