Air Conditioner, Utilities Shares Climb As Heat Wave Heads From Midwest To The South
Shares for air conditioner manufacturers and utility companies are rising with the temperatures as a heat wave that has scorched the Midwest makes its way to the South.
What Happened: A major heat wave that brought sweltering temperatures to the Midwest and Mid-Atlantic for more than a week is now headed to the South, as the more northern regions face severe storms and widespread floods, NPR reported.
As of Sunday, more than 123 million people across multiple U.S. states were under heat advisories including South Dakota, Nebraska, Kansas, Oklahoma, Iowa, Missouri, Arkansas, Louisiana, Florida, Connecticut, Pennsylvania, New York, New Jersey, Delaware, Virginia, Maryland and North Carolina.
The Midwest began to see temperatures fall this weekend, while a heat wave In the South that is forecast to take temperatures over 100 degrees is expected to appear early this week, according to NPR.
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The extreme temperatures are caused by a heat dome — a high pressure system that pushes hot air down and traps it — that is becoming more common and intense due to climate change.
Some parts of Mississippi experienced heat indexes of 105 to 110 degrees on Sunday and the scorching temperatures will last through Tuesday, The National Weather Service in Jackson said.
The heat index is forecast to exceed 100 degrees in middle Tennessee from Sunday to Tuesday, according to NWS Nashville.
Meteorologists in Arkansas said Little Rock and surrounding areas were under “extreme risk” on Monday and Tuesday, NPR reported.
Price action: Generac Holdings Inc (NYSE:GNRC) gained 1.66% by Monday’s mid-day trading, while Comfort Systems USA, Inc. (NYSE:FIX) ticked up 0.34% and Watsco, Inc. (NYSE:WSO) improved 1.36%. Lennox International Inc. (NYSE:LII) gained 1.02% and Carrier Holdings Corp. (NYSE:CARR) jumped 3.19%.
Utilities also rose with the heat on Monday by mid-day. American Electric Power Company, Inc. (NASDAQ:AEP), which provides electricity to 11 states in the Midwest and the South, gained 0.97, while CenterPoint Energy (NYSE:CNP), which also makes energy for these regions, edged up 0.74%. Entergy Corp (NYSE:ETR), which provides service to Louisiana, Mississippi, Arkansas and Texas, is up 1.74%. CMS Energy Corp. (NYSE:CMS), a Michigan utility, gained 1.5% by mid-day.
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Photo: Marc Bruxelle via Shutterstock