Yesterday to reauthorize federal aviation programs and would enact safety protections for passengers the Senate Passed a shortterm extension to prevent the current bill from lapsing later today and the house will take up the full legislation the house is expected to vote on it next week. We are learning more about the probe by the s. E. C. Into boeing reviewing statements over the Safety Practices after a panel blew off the alaska air flight back in january. We talked a lot about it investigators focused on the comments made by the Company Executives may have misled investors in violation of s. E. C. Rules. We will hear headlines about this for some time. In fed speak, San Francisco fed president mary daly said Interest Rates are currently restraining the economy, but it may take more time to return inflation to the Central Banks goals. It sounds like higher for longer pitch. It echos remarks from the fed chair jay powell last month where daly said the uptick in price data shows you cannot declare victory yet. We will hear more about that on power lunch oim with kashkari goolsbee were calling them that kashkari and goolsbee like hall and oates or martin and lewis. They will be on at 2 00. Kashkari and goolsbee. It has a ring, does it not not really. Like simon and garfunkel. He knows i dont know what happened to art. He was in the studio once. Art garfunkel. That is when ron was still here. He said that guy was so mean to me garfunkel yeah. He blew him off. Maybe he was just shy he was a really nice guy. He was a graduate of Columbia University he graduated with my husbands father who knew . He befriended a blind guy there who wrote a book about what a good guy he was and helped him around campus. It could have been a sign im kidding. In the meantime, the uk economy has emerged from recession. The gdp rose 0. 6 in the First Quarter. The economy entered recession in the Second Quarter the Services Sector grew for the first time in a year and driven by transport services. In a post on x, rishi sunak said the economy has turned a corner. The plan is working and we must stick to it. Meantime, a federal judge in San Francisco seems unlikely to grant the elon musk request in the investigation of the purchase of twitter. Musk said the agency is harassing him and he shouldnt devote more time to the meetings in a hearing yesterday, the judge asked are you saying that mr. Musk, because he is a very important and busy person that the s. E. C. Cannot investigate him . Later accused musk of gamesmanship with two days of notice back in september after he suggested for four months he would cooperate. Likely there will be more questions. In corporate news, shares a. The guidance for the Current Quarter was weaker than expected the shares are now down more than 20 year to date. Shares of u. S. Cellular jumping by 30 in yesterdays session after the wall street journal reported that tmobile and verizon are in talks to carve up the company this sends shares of telephone and data systems higher by 30 it began exploring alternatives for u. S. Cellular back in august of last year the report says that tmobile is close to a deal for a piece of the Company Worth 2 billion verizons talks are expected to take longer. Apple taking an unusual step of apologizing for an advertising video promoting the ipad pro tablet. Tim cook posting this on tuesday showing creative tool was guitars and pianos being crushed by a hydrolic table. This caused backlash from content creators an apple Marketing Executive said the company missed the mark with the video and theyre sorry. Apple decided not to run the ad on tv. I dont know what the big deal is about. How many times have you seen a musician get up on stage and smash his guitar the idea of the whole thing was compacting something into something so thin, but it was about crushing all of the creative tools and all of these things that are part of our world. People get really worked up over this stuff. I saw it and said whatever it was a good ad, but i understood the backlash. I could see it people have way too many things to worry about. It is not that we dont need musicians or instruments i dont think that is what they were trying to say. Thats the impact of the video i dont think it was just about musicians or creative people it was crushing everything thats what i mean. Ask for not whom the bell tolls. You better not do that teleprompters. They did. Now were screwed target is planning to cut lgbtq themed merchandise in june that is according to the bloomberg report that responded to the backlash over sales last year there is an assortment of merchandise available online, but target will decide which physical locations will carry the products target was forced to remove some of the collection including transgender swim suits with confrontations with customers in stores the spokesperson said the collection would be kcurated based on guest insights. I guess i would have retweeted that babylon if i thought it was retweetable the one i sent you about target. Oh, that one from yesterday if if retweet i thought it wo retweet, i sent it to you. It is not okay to mention it now. Im not going to mention it. You just did. I didnt. I didnt mention which one im not mentioning which one i dont think anything about whats happening in the middle east is funny. I guess its too soon. Not too soon it is never funny. It is so serious i was going to talk about Something Else i wished i worked for espn thats where the news is the games tonight. The knicks and nuggets down 20. Big piece of Anthony Edwards was kyle talking about p him . Yes he is a huge fan collector of the cards coming up it has nothing to do with anything. It doesnt just interesting on a friday the dow on the sevenday winning streak we will talk about technicals as we head to break here is a look at the stocks as we head into break on the positive side, chilis parent brinker and chipotle and papa johns then kate rogers will take a look at consumer trade downs in restaurant stocks. I didnt want to get out of this before 6 10. Announcer this cnbc program is sponsored by baird. Visit bairddifference. Com. alarm sound amelia, turn off alarm. Amelia, weather. 70 degrees and sunny today. Amelia, unlock the door. Im afraid i cant do that, jen. suspenseful music why not . Did you forget something . suspenseful music my protein shake. The future isnt scary. Not investing in it is. Youre so dramatic amelia. Bye jen. Nasdaq100 innovators. One etf. Before investing, carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com. Dow on the longest winning streak since december and now approaching 40,000 lets take a closer look at the chart. Joining us is mark newton from technical strategy you have a couple of jobs and claims numbers that go up and our cuts is causing it i know it is technical you are not a fundamental guy. The attitude changed back again to a possible cutting scenario i think thats right, joe the narrative has changed to some extent. We see the bad news as good news for the stock market anything that causes rates to pull back a little bit or the u. S. Dollar is seen as very good for rfkisk assets we saw the jobless claims hit the highest level since last august and lower jobs number last time. The combination of those caused treasuries to finally rally. Thats a very good sign at a time when people are worried that rates were going up above 5 on the tenyear yield and inflation was here to stay the key here for the economic standpoint is cpi to really see if theres evidence that can start to pull back technically, the market is in good shape here. We see about 70 over the 200day moving average which is a good sign. It hasnt been technology. We have seen other sectors start to participate you see financials and instrumentals and materials which is why that sector is moving it has been more broad based that gives me comfort this can continue and we are in a sweet spot at a time when the economy is chugging along. There are few signs it may start to put back and tear off a little bit it is not dramatic is there any reason that growth or a slowdown in labor in what we see on the first friday of every month, will that translate into cooler Inflation Numbers . If not, it doesnt mean it has to be that way, does it . Look, i think it is all very difficult to take Economic Data and try to, you know, pinpoint what the market will do. I would say the labor market is seeing evidence of the starting of cooling we dont see rapid unemployment. I think the market knows that and thats certainly a good thing. The recent data has confirmed powells dovishness. I think the market is still on good footing technically, were in very good shape. You have to look at the sector rotation and what is happening technology, although it pulled back a little bit, but were not seeing a massive decline in most tech stocks like apple have started to breakout. That is important for the s p and qqq. How is the sentiment . Bullish or bearish and as far as Election Years, were up 9 at this point so far. What does that indicate for the remainder of the year going into november you know, historically, we see five straight months of gains and april was down means it was very good for the balance of the year. The average gain is 16 from april to the end of the year april was down 4 . That usually is very good. We still have two wars and a lot of contentiousness and the climate is very poor right now with the Election Year people are unhappy and in general, that type of negativity is very, very good for the Market Sentiment has contracted we saw the three weeks of declines in the market from late march into april which caused a lot of the polls to go neutral to bullish levels. There are a lot of people on the sidelines and a lot of institutions going fully into the market and simply because tech is not working well you know, there are a lot of other parts of the market doing well we had someone on yesterday saying a lot of the gains in the magnificent seven and we heard that a lot and that was one of the reasons that maybe this is questionable you said the breadth is much better when did it start improving and whats the metric underneath that the breadth was starting to be good at the tail end of last year we saw the rally from october into the end of the year we saw a pretty broadbased rally. It is much different heading into 2024 than it was heading into last year we see, you know, a lot greater stocks above their longer moving averages when i say breadth, i say more than three quarters of the market moving above the 30day moving average having technology participate is important, but when it doesnt and then see other groups like financials and healthcare and he healthcare is now showing evidence of bottoming out. You can see new measures with the breadth. We are looking at longerterm gauges of how to look at the market do you use some technicals on the tenyear yield what is that indicating to you my allotment of cycles suggest the yields will start to pull back dramatically between now and august the next few months, i suspect yields can get down well under 4 which would be a surprise to many people. I think it also means the recent trend of economic softening might continue well see. To me, it doesnt matter of how many cuts. That is irrelevant the tenyear yield gets 4. 45 we are getting close to a time where yields will pull back sharply. The dollar should follow suit. It will be a good time for emerging markets signs of china bottoming and rallying off the lows. Honestly, im very optimistic over the next six months it wont always be the case into next year, but for now, im bullish this year. I think were in a sweet spot. Small caps have started to make a little bit of progress off the lows it will take a bit for those to really participate to the extent we like. It is moving in the right direction. Weve had other people say the yield curve will steepen and not necessarily be because of cuts it will be on the long end you think below 4 by the end of the year that will be at the same time inflation was coming in with better numbers softer numbers for inflation for the bond market to fall below 4 i think there is an interesting way they calculate we cant see Car Insurance go up 3 to 4 a month there is definite areas that can start to soften that were anomalies that we sawin januar and february you know, my thinking is that crude oil, obviously energy is important, as we fell from 90 to the high 70s. That will have a greater effect as well in how we look at things. Mark, thanks. Fundstrat global head of global strategies. Openai could reveal a new search product as soon as monday details right after the break. Speaking of Artificial Intelligence, check out shares of eaton getting an a. I. Bump managing power for data centers the stock hitting an alltime high in yesterdays session. Squawk box returns after this. She always thinks of others first. But for one day, its all about her. Celebrate mom and all she does with thoughtful mothers day gifts from weathertech. Treat her to lasermeasured Weathertech Floorliners and cargo liner to keep her vehicle looking like new. Keep moms phone in reach with handsfree viewing with cupfone. She can feel like shes on cloud 9 with the antifatigue comfortmat. Or pick a gift card and let her choose. Find these American Made gifts mom will appreciate all year long at wt. Com. Happy mothers day from weathertech. New projects means new project managers. You need to hire. I need indeed. Indeed you do. When you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. Visit indeed. Com hire and get started today. Welcome back to squawk box. Openai announcing the Artificial Intelligence search product on monday according to the report from reuters openai has been working on the search product ato compete with google the tech giant specs to unveil a slew of a. I. Products at the tech conference. We will see if they get ahead of go google. And sam altman has won investor approval by the spac of oklo this is the acquisition report and debut as soon as today on the New York Stock Exchange. It will develop next generation to produce cleaner energy and the first reactor in the u. S. Before the end of the deck ade. If sam altman is successful with the processing power, he will need the power behind it yes a huge issue much more demand for it than had been anticipated a year ago. It is a problem a lot of people are trying to tackle right now. When we come back, 1 billion test for the art market. Robert frank will join us with that story next. As we head to break, take a look at yesterdays s p 500 winners and losers announcer executive edge is sponsored by at t business next level moments need the next level network. To start a business, you need an idea. Its a pillow with a speaker in it thats right craig. A team thats highly competent. Im just here for the internets. At t its superfast. Reliable. You locked us out . arrggghh ahhhh solutionoriented. [jenna screams] and most importantly. Is the internet out . Dont worry, we have at t internet backup. The next level network. I sold a pillow this is our future, ma. Godaddy airo. Creates a logo, website, even social posts. In minutes how . A. I. impressed ay i like it who wants to come see the future . get your Business Online in minutes with godaddy airo sure, im a paid actor, and this is not a real company, but there is no way to fake how upwork can help your business. Search talent all over the world with over 10,000 skills you may not have in house. More than 30 of the fortune 500 use upwork because this is how we work now. Welcome back to squawk box. We are live from the Nasdaq Market site in times square. So far so good for the bulls this morning dow is up again after being up for seven sessions in a row. Indicated up 140 points. S p up 20 and nasdaq up 80. Shares of sinclair jumping after the report that the owner is looking to sell 30 of the footprint. Sources telling cnbc that sinclair identified 60 stations in the u. S. It would be willing to sell. Minneapolis and pittsburgh and portland and austin, texas could be up for sale we will watch this with the media chess pieces sinclair lost 70 of the market value in the last five years as millions canceled pay tv we talk about it all the time. Shares of yelp falling with earnings above estimates and the guidance is strong in the Home Services category with a challenging area in restaurants. Shares down 17 before todays date a business test in the highend art market. Robert frank is joining us with more the biggest sale of the year in the art market. 1 billion of art is headed to auction next week. That is down 17 from last year and thats if things go well Auction Sales fell 18 in the First Quarter. Contemporary art is the big money maker. That plunged 48 in the First Quarter. Dealers and collectors say the market is stalled over price buyers want a 20 discount and sellers want prices back to the peak in 2022 the market is often defined by the supply thats available were seeing what people perceive as perhaps a smaller offering this season one of the stars of the week is this Francis Bacon portrait that could go for 30 million to 50 million. Christies has event estimated at 30 million to 50 million. That oartist passed away last year and then at sothebys has one that sold for 2. 7 million 14 years ago. This one is called the italian version of popeye with no pork in his diet. That is estimated at 30 million. For more on the art market and where the wealthy are investing, check out our inside wealth newsletter at cnbc. Com insidewealth. Im reading this. This is well done. I appreciate that how many people are working with you on that it is all him i love it its great this week, we have a more det