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JP Morgan CEO Jamie Dimon says consumers are in ‘great shape’ for a recession

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Yahoo Finance Live anchors Julie Hyman and Brian Sozzi discuss recent remarks made by JP Morgan CEO Jamie Dimon, in which he warned of an impending recession.

Video Transcript

JULIE HYMAN: So one of the other things that we are watching now is Tesla. And that's because Morgan Stanley is out with a new note. Adam Jonas over there, across the auto coverage, talking about a bunch of different things that are pushing on the industry, slowing growth, headwinds from credit. One of the big names that was mentioned in this note was, indeed, Tesla, but really cut price targets on a number of different companies in his coverage [? universe. ?]

BRIAN SOZZI: Yeah, Adam Jonas a friend of the show. Always enjoy his notes. So I'm in. I'm in on this note. He's still staying an overweight rating on Tesla into earnings. He still thinks Tesla can leverage its cost leadership and EVs to aggressively expand its user base. So more of the same from Jonas, longtime bull on the name.

JULIE HYMAN: Yeah, at the same time, we also have an initiation of coverage of Tesla here this morning as well. That coming from Truist and William Stein over there, who, interestingly, covers semiconductors. And he's got an initiation with a buy rating here this morning, for what it's worth. So that's, obviously, more the consensus view on Tesla, right? That he's got a $1,000 price target, for example, and that AI innovation should turbocharge core EV growth. Those AI innovations that he's highlighting, even as the head of AI at the autopilot program, just announced yesterday that he's no longer with the company.

BRIAN SOZZI: Can we just stay on cars for a second? This BMW story about charging people for, what, heated seats?

JULIE HYMAN: Yes.

BRIAN SOZZI: I hope this is not a look into the future. I am not paying $50 a month for AC or heat in my car. And this is ridiculous. This now seems to be what started, I think, as a joke amongst the automakers because they couldn't get semiconductors into cars. Now it's starting to turn what appears to be a big real business model for them. I'm not paying for these things. It's ridiculous.

JULIE HYMAN: I don't know if it's a big real business model when one automaker is doing it. But let's hope it doesn't spread--

BRIAN SOZZI: I hope it doesn't.

JULIE HYMAN: --to the other ones.

BRIAN SOZZI: I mean, would you pay for heated seats?

JULIE HYMAN: No, I don't--

BRIAN SOZZI: No.

JULIE HYMAN: No.

BRIAN SOZZI: You don't need heated seats.

JULIE HYMAN: You don't really need heated-- like, I don't know.

BRIAN SOZZI: They have to draw the line somewhere.

JULIE HYMAN: Buy one of those old school, fuzzy seat covers. Do you know what I'm talking about?

BRIAN SOZZI: Yeah, everybody wants to be the Netflix of everything, Julie. They all want to create and grow subscribers--

JULIE HYMAN: Subscription revenue.

BRIAN SOZZI: --and create recurring revenue and become a Myles Udland favorite SaaS play, but you can't do that. When you sell a car for $150,000, you want heated seats. You don't want to pay more for heated seats. I'm very fired up about this. I think it's terrible.

JULIE HYMAN: I-- OK.

BRIAN SOZZI: Shame on BMW.

JULIE HYMAN: All right. That was-- I was not expecting a discussion on this.

BRIAN SOZZI: I'm just--

JULIE HYMAN: But I'm--

BRIAN SOZZI: I'm living in the moment, living in the moment.

JULIE HYMAN: --glad that everybody knows how you feel about it. We are less than a minute until the opening bell here this morning. And we look-- are looking at pressure on the major averages in the wake of wholesale prices rising at an even faster pace than consumer prices yesterday. We've got 100 basis points being floated as an increase in rates from the Fed at its meeting-- its upcoming meeting. So a lot of sort of nervousness out there.

BRIAN SOZZI: Yeah, what do you think? We're in a bear market. People want to pay for heated seats, Julie? Come on. Look at this market. The Dow down over 500 points on weak bank earnings. I'm not paying for heated seats.

JULIE HYMAN: You can't be mad about the eggs anymore because wholesale egg prices are going down. Now you're mad about the heated seats.

[MUSIC PLAYING]

[BELL]

Sozzi's day of rage. It has switched-- his attention has switched to something else. There, we have the opening bell on this Thursday morning here.

Some other commentary, by the way, coming to us from Jamie Dimon on the conference call, and again, he's really emphasizing the strength of the consumer here. He said that-- he said, even if we go into a recession, consumers are entering the recession with less leverage in far better shape than they've been. He said they're in better shape than they were in '08 in '09, far better shape than they did even in 2020. Jobs are plentiful, he said. Now, of course, jobs may disappear. Things happen.

BRIAN SOZZI: Oh, yeah. Oop, no big deal.

JULIE HYMAN: But they're in very good shape. And he reiterated his storm commentary as well. So, by the way, we're seeing the banks pull-- continue their pullback here this morning. JP Morgan, really, to me, the most eye popping headline this morning was the suspension of buybacks. And we also see them adding to reserves. So, sort of, if it is a storm, they're battening down the hatches, I think, would be the easy--

BRIAN SOZZI: Well, they may not be--

JULIE HYMAN: --analogy.

BRIAN SOZZI: --battening down the hatches with more frozen food.