The S&P 500 near record ahead of Magnificent Seven earnings, jobs data [Video]

Equity markets across Europe and the US began the week on a positive footage, except for oil stocks. Energy companies were hit by a 5% dive in oil prices due to Israel’s targeted attack on Iranian military facilities. Oil giants like Exxon, Chevron, BP, Shell and TotalEnergies are expected to announce a combined 12% decline from the Q2 when they release their earnings throughout this week.

In the FX, the US dollar consolidates near summer highs. The EURUSD regained the 1.08 handle but without much conviction from the euro bulls, Cable is offered near the 100-DMA, while the yen is slightly better bid this morning and the USDJPY is back below the 153, but the political jitters, there, probably call for an extended Bank of Japan (BoJ) support to the economy. The BoJ will announce its latest verdict on Thursday.

But before that, investors’ attention will shift to the US jobs data starting from today with the JOLTS data due today, ADP tomorrow, weekly jobless claims on Thursday and the official NFP, wages and unemployment rate due Friday. On the earnings front, Alphabet is the first Magnificent 7 company to go to the earnings confessional this week. Together, the US Big Tech companies are expected to announce around 18% growth in profit and – hopefully for Nvidia – massive increase to their AI spending. Nvidia will not be reporting its results for another month, but AMD results are also due today.