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Gun stocks rise sharply ahead of Obama speech

Art and Diana Ramirez of Austin with their pistols in custom-made holsters during and open carry rally at the Texas State Capitol on January 1, 2016 in Austin, Texas. On January 1, 2016, the open carry law takes effect in Texas, and 2nd Amendment activists hold an open carry rally.
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Art and Diana Ramirez of Austin with their pistols in custom-made holsters during and open carry rally at the Texas State Capitol on January 1, 2016 in Austin, Texas. On January 1, 2016, the open carry law takes effect in Texas, and 2nd Amendment activists hold an open carry rally.

Gun-related stocks rose sharply Monday, ahead of President Barak Obama's expected speech on gun control curbs later in the day.

Smith & Wesson shares climbed over 5 percent while Sturm Ruger stock was up nearly 3 percent. Meanwhile, gun retailers such as Cabela's was trading in the red, along with the broader market, and Sportsmans Warehouse was flat.

Obama said he will meet with U.S. Attorney General Loretta Lynch on Monday to discuss tighter gun control measures after a series of mass shootings.

The Washington Post and Politico reported last week that one of Obama's main proposals would require some unlicensed gun dealers to obtain licenses and conduct background checks on potential buyers. Current law exempts smaller dealers who operate at gun shows and sell online from this practice.

Obama could act upon these measures through an executive order, thereby avoiding opposition from the Republican-controlled Congress but also potentially prompting lawsuits by gun advocates.

— Reuters contributed to this report.