Earnings: JPMorgan, Citigroup, Delta / FAA clears SpaceX to launch Starship rocket / Apple to open its first retail stores in India

Plus, U.S. Supreme Court lifts ban on the abortion pill mifepristone.

Inside.com Part of   Network April 14, 2023

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What happened: JPMorgan Chase released its Q1 FY2023 earnings on Friday, reporting a record Q1 revenue. The bank posted $39.34B in revenue, up 25% YoY, primarily due to a 49% increase in net interest income to $20.8B. Net income came in at $12.62B, or $4.10 per share, up 52% YoY. JPMorgan shares closed at $138.73, up ~7.6% for the day.  Why it matters: More than 50% of JPMorgan’s total revenue was from net interest income. As the Federal Reserve has raised interest rates, capital has become more expensive. JPMorgan updated its guidance for net interest income for 2023, now expecting to earn about $81B, compared to the $74B previously stated. Where to see the impact: JPMorgan is the largest bank in the U.S. by assets and is often considered the barometer for the larger banking sector. Following the sudden collapse of Silicon Valley Bank and Signature Bank in March, many are looking to the bank for a signal of what to expect in the coming months. According to JPMorgan CFO Jeremy Barnum, the bank had a significant influx of deposits to its commercial bank during the recent banking crisis.

The Federal Aviation Administration has granted SpaceX a Starship launch license, clearing the company to attempt the first orbital launch of its super rocket. SpaceX said it aims to launch as soon as Monday, April 17. The license is valid for five years. More: SpaceX plans to launch the rocket from its Starbase near Brownsville, Texas. The company said its 150-minute test window would open at 7 a.m. CT. SpaceX stacked the Starship prototype 24 on the Super Heavy booster prototype 7 in preparation for the launch. Together they stand nearly 400 feet high. SpaceX had originally planned to conduct its first Starship orbital launch in summer 2021, but various delays pushed the timeline back.

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Ethereum completed its so-called Shapella or Shanghai software update on Thursday, allowing users who have pledged their Ether coins to help the network operate a chance to withdraw their coins. Users earn rewards in return for their pledges. The process is called staking. More: About 17.52M ETH is staked on the network, excluding rewards. This amounts to about 16% of the total ETH supply. Following the completion of the upgrade, about $1.34B in ETH was waiting to be withdrawn. By 8 a.m. ET on Friday, the amount had increased to more than $1.7B. According to Token Unlocks, nearly 861,000 ETH were pending withdrawal. By Thursday 5 p.m. ET, Ether was trading at nearly $2,060, its highest level since May 2022. ETH is up more than 75% YTD.

Delta Air Lines released its March quarter earnings on Thursday, reporting a larger-than-expected loss for the quarter. The airline generated $11.84B in revenue, up 45% YoY and 14% higher than Q1 FY2019 revenue. More: Delta posted a net loss of $363M, or 57 cents per share, pointing to its recent four-year pilot contract that includes 34% raises. Delta reported a net loss of $940M or $1.48 per share in Q1FY2022, as the airline was still recovering from the impact of the COVID-19 pandemic. Delta said it has been seeing strong demand, and its domestic sales in March are 85% back to 2019 levels. Delta earned $1.7B in the quarter from its credit card partnership with American Express. The amount is up 38% compared to last year. Delta shares are up ~4% YTD.

Apple is set to open its first retail stores in India next week. The two stores are in Mumbai and the capital city of Delhi. The Mumbai store will open on April 18, and the Delhi store on April 20. More: Bloomberg reported that Apple CEO Tim Cook might travel to India for the store openings. In February, during the company’s December quarter earnings call, Cook noted that he is very bullish on India. India is the fifth largest economy in the world. Apple has been increasing its iPhone and other product manufacturing in India as it seeks to diversify its supply chain from China. According to Indian Minister of Commerce and Industry Piyush Goyal, Apple aims to produce about 25% of its iPhones in India.

Citigroup released its Q1 FY2023 earnings on Friday, beating analysts’ expectations. The bank reported $21.45B in revenue, up 18% YoY. Net income was $4.6B, or $2.19 per share, up from $4.3B reported in the same period last year. More: Citigroup’s Personal Banking and Wealth Management arm generated $6.45B in revenue, up 9% YoY. Its Institutional Clients Group generated $11.23B in revenue, up 1% YoY, and its Legacy Franchises earned $2.85B in revenue, up 48% YoY. Citigroup reported a total provision for loan losses of $1.98B, up 7% from the prior quarter. CEO Jane Fraser said the bank expects the U.S. to enter a “shallow” recession later this year. Citigroup shares closed at $49.56 on Friday, up ~5% for the day. The bank is up ~8.3% YTD.

Quick Hits These robots are knee-deep in a $19.4B joint surgery market potential. Invest in Monogram ahead of their planned Nasdaq listing.* Brazilian president Luiz Inácio Lula da Silva has called on BRICS countries to work toward replacing the U.S. dollar with their own currencies in international trade. BRICS stands for Brazil, Russia, India, China, and South Africa. The Supreme Court has lifted a ban on the abortion pill mifepristone. Justice Samuel Alito blocked lower court rulings restricting mifepristone access until 11:59 p.m. ET on Wednesday. According to sources, Elon Musk is assembling a team of artificial intelligence researchers and engineers to launch a new AI firm to compete with OpenAI. Musk was one of the founders of OpenAI. France’s Constitutional Council has approved President Emmanuel Macron’s plan to raise the country’s retirement age from 62 to 64. Eliminate application bottlenecks by bringing the performance and data portability of open-source, lightweight SQL close to your users with low overhead.* *This is a sponsored post.

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Vanessa Omeokachie writes the daily Inside Business newsletter. Her interests include finance, technology, and entrepreneurship. In her free time, she enjoys reading, hiking, attending concerts and music festivals, traveling, and exploring.  Connect with her on Twitter @VanessaOmeo or on LinkedIn. Editor Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords.

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