J.P. Morgan U.S. FTM 22 May 26 Large Banks Consumer Credit; SPOT; WMT; Broadlines & Hardlines Retail and More

Research evidence excerpt

J.P. Morgan U.S. FTM 22 May 26 Large Banks Consumer Credit; SPOT; WMT; Broadlines & Hardlines Retail and More

North America Equity Research

Due to market closures, there will be no publication of US First to Market on 25 May. Publication resumes on

26 May.

U.S. First to Market 22 May 2026

Top Stories

Large Banks Consumer Credit (Vivek Juneja)

Credit Metrics Holding Up - Impact of Inflation, AI Key Uncertainties; Post Tax Refund Spending?

Younger Age Unemployment

Consumer credit quality is holding up overall and should continue to do so as unemployment remains low, economy is holding

up, and spending continues to grow in nominal terms. However one unknown is what will happen to spending after tax refunds,

especially among lower income consumers. Furthermore, medium term, some pressures continue to build - rising inflation and

impact of AI on employment with news of more job cuts by companies through use of AI.

Spotify (Doug Anmuth) (SPOT, OW, PT $650.00)

So It Was a Product Day...AI Deal w/UMG, Pivot from SuperFan to Add-Ons, & Upside to Financial

Targets...Raising Estimates, Reiterate Overweight & a Top Pick, PT to $650

Spotify shares traded up +13% on Thursday (vs. SPX ~flat) as the company delivered a strong Investor Day, which

included a landmark AI licensing agreement with Universal Music Group, a path to introducing multiple add-on tiers

across verticals, & 2030 financial targets above expectations . SPOT’s licensing agreement with UMG (covered by JPM’s

Daniel Kerven) enables SPOT to launch a new tool for fans to create covers and remixes of songs from participating artists &

songwriters.

AFL | Walmart Inc (Christopher Horvers, CFA) (WMT, OW, PT $137.00)

Pullback a Buying Opportunity; Maintain Overweight; Adding to Analyst Focus List