JPMorgan Earnings, Trump vs Powell, Goldman’s Revenge, Apple + Google Deal - The Compound and Friends Recap

Podcast: The Compound and Friends

Published: 2026-01-13

Duration: 1 hr 4 min

Guests: Michael Batnick

Summary

JPMorgan announces robust earnings, demonstrating resilience in the U.S. economy. Goldman Sachs' strategic divestment from consumer banking and the new Apple-Google deal for Siri enhance the financial and tech landscapes.

What Happened

JPMorgan Chase reported impressive earnings, with $95 billion in net interest for the recent quarter, showcasing the bank's financial strength. Jamie Dimon, CEO of JPMorgan, remarked on the resilience of the U.S. economy, noting that while labor markets have softened, they are not deteriorating significantly. The bank is projected to earn $57.5 billion for 2025, equivalent to $150 million in profit daily.

Goldman Sachs is undergoing significant strategic changes, divesting from its consumer banking operations after incurring a loss of over $7 billion since 2020. This move includes a $20 billion deal with Apple, reflecting Goldman's shift back to its traditional investment banking roots. Despite these challenges, Goldman has achieved a cumulative return of 403% since July 2018, far surpassing the S&P 500's return of 187% during the same period.

The episode also highlights the ongoing political pressure on the Federal Reserve, as it navigates its independence in setting interest rates amidst external influences. Jerome Powell, Chair of the Federal Reserve, emphasizes the need for monetary policy to be driven by economic conditions rather than political pressures.

On the tech front, Apple and Google have struck a multi-year agreement to use Google's technology for enhancing the Siri voice assistant. This partnership aims to boost Siri's functionality and competitiveness in the voice assistant market.

The conversation turns to the performance of various sectors, noting that six sectors have lagged behind the S&P 500 by at least 50% over the past three years. Despite this, technology and communication stocks like Google and Meta have outperformed since the launch of ChatGPT, marking a shift in the tech landscape.

In the airline industry, Delta Airlines reports an increase in revenue from first-class ticket sales, highlighting a trend where premium seats are outpacing main cabin sales. This shift indicates changing consumer preferences towards more luxurious travel experiences.

Key Insights