Need to Know

Climate change is urgent and preparing your portfolio should be too. Five ways to start thinking about it, from Jefferies strategists

Critical information for the U.S. trading day

Big rain in New York City on Aug. 9.

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Referenced Symbols

We’re seeing some big rebounds Tuesday for gold and oil, which have taken hard hits in the last couple of sessions, even as stocks appear bogged down.

According to the UN’s bombshell IPCC report released Monday, the time for nations to debate climate change is over, and actions have to be taken now. The same could be said for investors and their portfolios when it comes to climate impacts. A recent survey showed economists and financial professionals believe asset markets are far underestimating any risks.

What should investors start thinking about now? Our call of the day, from a team of Jefferies strategists led by Aniket Shah, offers up five big investment takeaways from the climate report.

Small-business gloom and AMC surges

Not “out of the woods yet.” That was AMC Entertainment’s AMC, +6.48% chief executive Adam Aron tempering optimism over the movie business’s recovery after reporting a narrower quarterly loss late Monday. Shares are up. as it also announced a theater deal with AT&T’s T, -0.21% Warner Bros.

Small businesses in July lost almost all of their confidence gains made in June, says the latest NFIB survey. Elsewhere, data showed preliminary second-quarter productivity moderated and unit labor costs rose 1%. That’s a day ahead of important inflation numbers. Chicago Fed President Charles Evans will hold a press conference at 2:30 p.m. Eastern.

Atlanta Fed President Raphael Bostic said Monday that conditions were ripe to begin progressing with tapering, with those thoughts echoed by Boston Fed President Eric Rosengren who said the central bank should start dialing aid back soon.

The world’s biggest tech investor, Softbank 9434, -0.78% reported plunging profits as the value of some of its largest investments fell.

On the railways, shares of Kansas City Southern KSU, +6.98% jumped after Canadian Pacific CP, -0.87% submitted a ‘superior’ buyout bid. And Lightning eMotors ZEV, +50.39% shares surged 46.3%, after the commercial electric vehicle company announced an $850 million partnership with Berkshire Hathaway BRK.B, -0.16%.

Bitcoin BTCUSD, +1.21% is holding steady at $45,000 after the industry didn’t win a change to cryptocurrency tax reporting rules as part of an infrastructure bill that’s poised to pass Tuesday. Crypto platform Coinbase COIN, -1.58% will report results after markets close Tuesday.

The markets

U.S. stock futures YM00, +0.04% ES00, +0.05% NQ00, +0.12% are flat, though Europe equities SXXP, +0.35% are up and Asian equities had a mostly upbeat session, with China’s CSI 300 000300, +1.16% gaining 1%.

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