The Rundown - CPI Steady at 2.7%, Nvidia and Eli Lilly Announce $1B Partnership

Episode Date: January 13, 2026

Market update for January 13, 2026Follow us on Instagram (@TheRundownDaily) for bonus content and instant reactions.In today’s episode:• Google crosses $4 trillion after Apple taps Gemini to power Siri• CPI comes in as expected, with inflation holding steady at 2.7%• What the latest inflation data means for the Fed and rate cuts• JPMorgan kicks off earnings season with a big trading-driven beat• Nvidia and Eli Lilly announce a $1B partnership to use AI in drug discovery• Market movers: Intel and AMD rally, Delta slides after earnings

Public.com presents the rundown. Your daily market update in under 10 minutes. My name is Zadadmani, 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 J.P. 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 get 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 NASDAG 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's worth more than $4 trillion. You know, Google has been on a role the last few months,

and it got another boost yesterday after Apple officially announced that Google's Gemini AI will power the revamp Siri, which is expected to launch later this year. Now, I'm not going to 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. 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. 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 the 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.

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. 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 J.P. Morgan. J.P. Morgan, the biggest bank in the U.S. 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. 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, things could turn around in 26 with a stacked pipeline of IPOs and the possibility of rate cuts. Now, of course, whenever JP Morgan reports earnings, what CEO Jamie Diamond says on the call is almost as important as the numbers themselves. You know, Jamie Diamond, who's a bit of a dumer, 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 Diamond. And when Jamie Diamond 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, City, 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. 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 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 2 nanometer chip, which Intel says is the most advanced CPU ever produced in the U.S. 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 29. If this ends up happening, that would be a big credibility boost for Intel's manufacturing capabilities. Key Bank has a $60 price target for Intel and a $270 price target for AMD, and as a result, Intel's 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 CEO says 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%. 10 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 3.5%. 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 high. 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 cap will go into place, but if it does, it'll be interesting to see the fallout. Like our credit card company is 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 of 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 five extra seconds,

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Shout out to Mike and Connor for all the work behind the scenes. And we'll see you guys back here tomorrow. Rosen lasagna, medium power, 15 minutes. Sounds like Ojo time. Let's play. Feel the fun with Play-Ojo. The online casino with all the latest slot and live casino games. What you win is yours to keep with no wagering requirements.

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