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Chapter 1: What are the latest updates on the CPI inflation report?
public.com presents the rundown your daily market update in under 10 minutes my name is zaydad mani and today is tuesday january 13th in today's episode we'll break down the latest cpi inflation report
We'll also recap earnings from JP Morgan and Delta and tell you about a partnership between Nvidia and Eli Lilly. Then stick around to the end of the show to find out why credit card interest rates have doubled in the last 10 years. We got a great show for you today. Let's go.
Stocks moved higher to start the week, with the S&P 500 gaining 0.2% on Monday and setting another record high, while the Nasdaq did even better, adding 0.3%. One of the winners yesterday was Google. The company crossed the $4 trillion market cap for the first time ever, joining Nvidia as the only company worth more than $4 trillion.
Chapter 2: How did Google achieve a $4 trillion market cap?
Google has been on a roll the last few months, and it got another boost yesterday after Apple officially announced that Google's Gemini AI will power the revamped Siri, which is expected to launch later Now, I'm not gonna lie to you guys, I was pretty surprised to see stocks rally yesterday.
I thought the criminal investigation by the DOJ into the Federal Reserve and Jerome Powell would spook the market, but that wasn't the case. I guess investors are more focused on all the good things happening right now. One of those things being strong corporate earnings.
And speaking of corporate earnings, Q4 earnings season kicks off this week and analysts are expecting the S&P 500 earnings growth to come in at 8.3%, which would mark the 10th consecutive quarter of earnings growth for the index.
Chapter 3: What does the latest CPI data mean for the Federal Reserve?
So you can see why investors are bullish right now. It also helps that Fed Chair Jerome Powell is getting bipartisan support from former Fed officials, lawmakers from both parties, and Wall Street veterans. They've all come out in support of Jerome Powell and the Fed's independence. So the fierce backlash from this investigation might be enough for the DOJ to back off.
We'll have to see how it all plays out. Either way, you already know the next Fed meeting on January 28th is going to be very interesting. I imagine Jerome Powell is going to get a lot of questions. Historically, he's avoided all the political questions about the Trump administration, but he might not back off this time.
Chapter 4: How did JP Morgan perform in the latest earnings report?
So I'm really looking forward to the next Fed meeting. Now, while all this is happening to the Fed, keep in mind, the Fed still has a job to do, which is keep inflation low and employment high. And we just got the latest CPI report. And according to that report, the numbers were pretty solid. Inflation in December came in at 2.7%, which is right in line with expectations.
And core CPI came in at 2.6%. Economists like to focus on the core CPI number because it strips out volatile prices like food and energy. Overall, while inflation is still running a bit hotter than the Fed's 2% target, it's still relatively in check.
Chapter 5: What is the significance of the Nvidia and Eli Lilly partnership?
And it's yet another sign that Trump's tariffs have had minimal impact on prices so far. Now, we'll have to see if this inflation data impacts the Fed's decision on interest rates. Right now, the odds of a rate cut at the next meeting is just 5%. Still, between earnings season kicking off, the Fed, and everything happening in Washington, the next few weeks are going to be absolutely stacked.
It's definitely a good time to get subscribed to the podcast if you're new here, because we're going to be breaking it all down every morning so you could stay in the loop. Let's run through some headlines. starting with JP Morgan. JP Morgan, the biggest bank in the US, reported earnings this morning, and they topped expectations thanks to a surge in trading revenue.
The bank's equities trading revenue surged 40% to $2.9 billion, blowing past estimates by roughly $350 million. as traders took advantage of volatile markets.
Chapter 6: Which stocks are currently moving in the market?
And all in, total revenues for the bank jumped 7% to nearly $47 billion, and net interest income, which is what the bank earns on loans minus what they pay on deposits, also jumped by 7%. Now, there was one soft spot in the report, which was investment banking fees. That fell by 5% from a year ago.
But that's also a tough comp since the bank had a banner deal-making year that helped it reach record annual profits. Now, Now, things could turn around in 2026 with a stacked pipeline of IPOs and the possibility of rate cuts. Now, of course, whenever JP Morgan reports earnings, what CEO Jamie Dimon says on the call is almost as important as the numbers themselves.
You know, Jamie Dimon, who's a bit of a doomer, says the US economy has remained resilient. He said that while labor markets have softened, conditions do not appear to be worsening. Meanwhile, consumers continue to spend and businesses generally remain healthy.
Chapter 7: Why have credit card interest rates doubled over the last decade?
So the economy got a vote of confidence from Jamie Dimon. And when Jamie Dimon talks, the rest of the markets listen. By the way, we're going to be hearing from more big banks this week. Bank of America, Citi, and Wells Fargo are reporting earnings on Wednesday, followed by Goldman Sachs and Morgan Stanley on Thursday. So... Earnings season is officially here, everybody.
Let's shift gears and talk about NVIDIA and Eli Lilly. These two giant companies announced that they're investing a billion dollars over the next five years to build a joint AI research lab in the Bay Area, focusing on reinventing how drugs are discovered. partnership is interesting and it makes sense because Eli Lilly is already using AI models to design and discover new treatments.
In fact, just a few months ago, the company said it was building a supercomputer powered by more than 1,000 of NVIDIA's Blackwell chips. Now this new lab will go even further using NVIDIA's next generation Vera Rubin chips with NVIDIA engineers working side by side with Eli Lilly's scientists.
A key goal of this joint venture is to speed up the drug discovery process, which has historically been very slow. Companies want to automate physical experiments and other tasks typically handled by human researchers, which Nvidia says are the primary constraints on the speed of labs. So I'm excited to see where this goes.
You know, a billion dollar investment is a drop in the bucket for both of these companies. They're both worth over a trillion dollars. So hopefully this billion dollars is just the start. You know, I'm bullish in the healthcare sector this year, and AI is a big reason for that. Let's talk about some stocks making moves today.
Both Intel and AMD are moving higher this morning after KeyBank upgraded the two chip makers pointing to a surge in demand for traditional CPU chips and not just AI GPUs. According to KeyBank, which is a Wall Street research firm, big tech companies are stocking up on server CPUs as they build out AI infrastructure and demand is so strong that server CPUs are almost sold out for all of 2026.
And for Intel specifically, there's also growing optimism around its foundry business. The company recently earned praise from President Trump for its 18A 2nm chip, which Intel says is the most advanced CPU ever produced in the US. And unlike most competitors, Intel actually manufactures their chip in-house.
KeyBank also says Intel has landed Apple as a customer for low-end M series chips starting later this decade, and discussions are underway to potentially manufacture the A series chips for iPhones by 2029. If this ends up happening, that would be a big credibility boost for Intel's manufacturing capabilities. KeyBank has a $60 price target for Intel and a $270 price target for AMD.
And as a result, Intel shares are up more than 3% this morning, while AMD is up over 2%. Now, on the flip side, shares of Delta Airlines are getting hit after the company missed revenue expectations for the fourth quarter. The big issue for Delta was the decline in economy travelers. Delta said their economy ticket revenues fell 7% while their premium ticket sales jumped 9%.
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