Cooling stocks get hot as Europe wilts and U.S. hunkers down

California delays climate reporting rule rollout until after the midterms

In today’s edition:

— As Brits and Europeans see summer heat as the new normal, AC stocks leap

— California delays climate reporting rollout until after the midterms

— NASA climate specialist on just how hot it might get in coming years

— Former NOAA staff revive climate site shut by Trump

— The U.S. has seen more than 35,000 wildfires this year, and summer is just beginning

Here are the daytime high temperatures forecast across the U.S. for Friday, July 3. Washington, D.C. could see a daytime high of 105°F. The record high in the nation’s capitol for July 4th is 100°F, set back in 1919.

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As extreme heat threatens the Eastern half of the U.S. this week and Europe fights historic global warming, investors are naturally turning to cooling stocks.

Some of the biggest air conditioning companies and industrial coolers have seen their stocks surge this spring as demand is expected to soar in coming days, testing systems and regional electric grid capacity.

Shares of Comfort Systems FIX 0.00%↑, which services industrial HVAC systems, have more than doubled this year and are up 4% more in the past few weeks. Shares of rival Trane Technologies TT 0.00%↑ are up 23% while global HVAC giant Carrier Global stock CARR 0.00%↑ is up 38% this year and 15% in recent weeks. Other companies seeing gains include Watsco WSO 0.00%↑ and AAON AAON 0.00%↑.

The extreme heat has crippled Europe and left scientists scrambling to determine just how much worse it could get later this summer and in the next few years (see NASA scientist’s analysis below). News reports say aircon sales in the UK, where only 7% of citizens have AC, have leaped in recent weeks as it finally becomes apparent that these temperatures are the new summer norm. In the U.S., Europeans visiting for the World Cup are basking in the AC in all the stores and restaurants and hopefully will bring back determination to add it in their homelands. For the cooling companies, the gains are welcome but come with challenges on how to keep growing in an increasingly competitive environment.

If you have ideas or suggestions for us, contact me directly at dcallaway@callawayclimateinsights.com.

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Tuesday’s subscriber insights

The Ivanpah Solar Electric Generating System is a solar thermal plant located in California’s Mojave Desert. Photo: Wikimedia.

California delays climate reporting rollout until after the midterms