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Public.com presents the rundown, your daily market update in under 10 minutes. My name is Zadod 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. 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 dollar market cap for the first time ever, joining Nvidia as the only companies worth more than 4 trillion. You know, Google has been on a roll the last few months, and it got another boost yesterday after officially announced that Google's Gemini AI will power the revamp Siri, which is expected to launch later this year. 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 out this week, and analysts are expecting the S P 500 earnings growth to come in at 8.3% would mark the 10th consecutive quarter of earnings growth for the index. 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 28 is going to be very interesting. I imagine Jerome Powell is going to get a lot of questions. You know, historically he's avoided all the political questions about the Trump administration, but he might not back off this time. 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 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. 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 staggering, 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 adv of volatile markets 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 the 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 things could turn around in 2026 with a slight 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 U.S. 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. 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 $1 billion over the next five years to build a joint AI research lab in the Bay Area focusing on reinventing how drugs are disabled discovered. This 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 access 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 and 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 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 2 nanometer 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 a decline in economy travelers. Delta said their economy ticket revenues fell 7% while their premium ticket sales jumped 9%. So in other words, higher income travelers are still spending, but price sensitive flyers are pulling back. The that trend isn't changing anytime soon. And going forward, nearly all of Delta's seat growth will be in premium cabins and not economy. Now, to be fair, Delta did offer some reassurance. The company said that early Q1 bookings from both corporate and leisure travelers look solid. And it expects 5 to 7% sales growth this quarter, which is right in line with estimates. But despite the optimistic outlook, Delta stock is down around 5% this morning. In reaction to these earnings, let's wrap the show with a fun fact. The average credit card interest rate today is 22%. Ten years ago it was 12%. Now, a big reason that credit card interest rates have gone up is because of the Federal Reserve. Credit card rates are one of the things directly impacted by the fed funds rate. Ten years ago, the fed funds rate was less than 1%. Today it's more than three and a half percent. But that's just one of the reasons why credit card rates have doubled. There's also been an explosion of credit card reward programs. Things like cashbacks, points, miles, free flights, you name it. These perks aren't free. Banks pay for them by charging higher interest to people who carry balances. And then also these credit card companies and banks have increased their profit margins as well. And that's why credit card interest rates have gone from 12% to 22% in a decade. And now President Trump and other politicians are calling for credit card interest rates to be capped at 10%. Now, personally, I still don't think this cat will go into place, but if it does, it'll be interesting to see the fallout. Like our credit card company is going going to cut back on rewards or stop lending to risky borrowers. We'll have to see how it all plays out if it ever comes to fruition. But let me know in the comments on what you guys think. Do you think that these credit card interest rates should be capped? Well, all right, guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did and you have like 5 extra seconds, consider giving us a 5 star rating on Apple Spotify, YouTube, wherever you listen to your podcast. And if you are listening on Spotify, don't forget to vote. If you're in today's Spotify poll, leave us a comment on Spotify. All that engagement really does help us out and it helps other people find the show. Thank you guys so much for listening, watching and commenting. Shout out to Mike and Connor for all the work behind the scenes and we'll see you guys back here tomorrow.