In the late 90s. Its a whole smatters of tech joy companies from not just france but throughout. I should also mention that elon milk has just been added to the program. Were going to be laering from elon musk. And also moe di tomorrow. Many have said they dont understand it. They cant see inside the box. This new research theyve developed can see inside the box to understand what ai is doing. They can look at the difference. Up until now thats been impossible. Thals what im doing in paris, and weve got a lot more throughout the day. Just in terms of seeing what it does, how will they do it . The imaginations they can cook up, can they track it down . Thats exactly what this research seems to suggest that theyre going to be able to do. That they ee going to be able to understand hall like i. It may explain why one model writes one sentence and another writes another sentence and whats driving the different understandings of the nils that its taking in. Well talk to dario about it in just about an hour and a half from now. I guess you can think of it as a cat skarn. I its having its interesting. I couldnt read an mri either. Lets get a check on the markets this morning. Youre going to see the u. S. Equity futures are a little bit lower. The dow futures this morning down by 250 point. S p 500 futures down. Pretty stuck bornly high. Weve been at the recordhighs. I do think the market has been essentially waiting for nvidia numbers. Waiting for the next move. Everyone remembers. It seemed like we had high hopes for nvidia and then they had this blowout report and the entire market got an upgrachltd. Theyre High Expectations for the numbers. Totally. Well see how it goes from there. On todays squawk planner, really no economic data, but we will get the minutes from the latest fed meeting. Thats at 2 00 p. M. Eastern time. On the earnings front, retailer target set to report around 6 30 a. M. Eastern. Stay right here for those numbers and the reaction on wall street. Were also going to hear from tjx and William Sonoma before the bell. And after the bale, were going to talk to a chip analyst in the next hour. New this morning, the Biden Administration saying that it will forgive 7. 7 billion in additional student loan anniversary than 160,000. These involve borrowers in the public program. It brings it to 7. 5 million borrowers who have had or will have loans forgiven we the administration. Im not sure why were showing these College Protest pictures in the mix of this. Its like one in ten americans who owe on Student Loans have been forgiven . More borrowers got forgiveness. Not a surprise in the election year. Its obvious. Secondly the Biden Administration is going to release a billion barrels of gasoline in the northeast to try to reduce prices at the pump ahead of the fourth of july and the summer driving season. Gas prices at the pump have pulled back. The National Average is 3. 61. Former President Trump criticized that move as a political stunt saying high gasoline prices are got good for elections. He said biden was selling gasoline because in his words hes unable to drill properly. This was mandated by congress release. Theyre shutting this down. Its a million barrels. We burn 9 bouillon a day. In earnings news were watching shares of Toll Brothers this morning, they beat analysts estimates after the close. It differs homes. The company said demand for new homes is driven by the economy and inventory caused by the lockin effects of higher rates. Its been very strochlk up 28 . Doubled in the last year. Shares Urban Outfitters are looking to buy highend womens clothesing. They weighed in on a bigger than expected drop. The companys coo. Smaller tops over loser fitting bottoms. I dont know if this is for you, mike. I know. This is for women. We have daughters. I know exactly the trends. Big balloony pants and crop tops. Almost like the early 90s. Ive seen mens pants too. Have you noticed . Men are wearing broader pants with the bootcut. No, no, no. This is way more exaggerated. This is more mc hammer pants, not gradual things that are real subtle. This is a very balloony pants sought of and crop top to show it off. Not a look i could pull off. Youre in paris. Youre going to come back and tell us what the next next look is. I was commenting earlier, i like the dark shirt with the dark chute. Im trying to look techie. It works. Im going for the ai look. Its fancy. Youve got a pocket square. Thats a little fancier than normal tech look. Good job. Coming up, the s p and nasdaq both closing at recordhighs. Well talk strategy after the break, later dor. Scott gottlie will weigh in on weight loss drugs like wegovy. Squawk box will be right back. Car, where are we going . Were here. surprise the future isnt scary. Not investing in it is. Car, were you in on this . Nothing gets by you james. Nasdaq100 innovators. One etf. Before investing, carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. Com i cant believe you corporate types are still calling each other rock stars. Youre a rock star. Were all rock stars. Oooo look look at my data driven insights, im a rock star. Great job putting finance and hr on one platform with workday. Thank you guys, can you keep it down. Im working. You people are guitar noises . Hand over the air guitar. Ive got another one. Norman, bad news. I never graduated from med school. What . But the good news is. Xfinity mobile just got even better now, you can automatically connect to wifi speeds up to a gig on the go. Plus, buy one unlimited line and get one free for a year. I gotta get this deal. I know. Faster wifi and savings . I dont want to miss that. Thats amazing doc. Mobile savings are calling. Visit xfinitymobile. Com to learn more. Doc . The s p 500 and nasdaq close on highs. Lets bring in the chief Equity National strategist from bank of america. Steve, good to see you. Good morning. I guess, making new highs is a bullish thing to do. The ends to be something that has positive forward implications, but what do you make of the rallies we had off the lows of april, up 7 or so, whether volume, breadth, the composition of the rallies suggests whether it can last or not. First and foremost, were about to enter the best seasonal period of the year, june through august. The s p 500 is up about 2 3. During election years, its on steroids. With new heise coming, we think it can continue. A lot of people dont look at volume. That also confirmed the highs last week. So i think thats very important and suggested that the rally should continue. What about the leadership or whether theres sort of a shifting preference evident in the market here. Youve seen common modesty base stocks and running with metals and you see on the other side banks doing well. It seems a little bit of a grab bag, not the old big cap growth leadership. I think thats great. We really need to see that. Quite frankly, shifts in leadership do help markets go higher. I will say, though, we do think that on an absolute basis you can get breakouts for the small cap instance or equal weight s p. You look at how they perform and its still down in the doldrums, still trending lower. Theres a chance even with this broader participation, it still could be a more mega cap market. Its not only in the u. S. Youve got europe. Japan has declined a little bit. Its a global bull market right now. And what about china. A lot of excitement over the move over washed out lows recently. I think the important thing is youre starting to see emerging markets break out. If you looked at the indices, they have a head and shoulders bottom meaning they should go higher. They look a little excepted here, but i think theyve entered into a by the dips kind of market. Is it because were expecting a rate cut ecb with the fed to follow . Lower rate environmental is better for some of these emerging markets. I would agree. I think rates have been elevated for a while and the market has digested that find. So anything other than, you know, having to hike again would support those markets. You know, all of this suggests that the trends remain positive longer term. That was also the case on march 21st. As people get a little bit positioned too aggressively. Right now i dont think were there. You did have a bit of frothiness and sentiment based on the ai bull and then we had that correction into april. They acknowledged the correction, became less bullish. Now theyre not near where they were at the march high. So even with sentiment indicators and positioning, theres the capacity to add to the market on the rally. Cash levels remain elevated as well. So, you know, that just gives us fuel for the market to continue to move up. We think the s p could be 55 rngz 5600 on a summer rally, you know, and we if we can hold 52 50, that would mean the gap we formed last week is intact. Work gets dicier. Obviously if you fill that gap, you have an opportunity to get in lower. Sometimes thats hard. The april rally could have gone to 4600. Pullback, yeah. Im sorry. The pullback could have been perfectly fine. That would have been great. People didnt get that opportunity. Youve got the 5 discount. Thanks so much. Good to see you. When we come back, Third Party Candidate rfk jr. Is buying shares of gamestop and v. Ting an interesting game poer wee got the details on that next. 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. When you need to prepare for unpredictable adventures. gasp you need weathertech. [hot dog splat. ] laser measured floorliners front and rear. [drink slurp and splat. ] scream seat protector to save the seats. [honk ] theyre all yours were here hey, i knew you were comin. So i weatherteched the car can we get ice cream . We can now. Kid proof your vehicle with American Made products at weathertech. Com. Are you interested in safeguarding your investments with gold . Alamos gold is a growing canadian gold producer with a long track record of outperformance. Alamos gold. Invest with us. Our growth sets us apart. Welcome back, everybody. Were watching crypto prices as ethereum continues to rise despite optimism. The first of a series of decisions on krepp toe instruments are due tomorrow and friday. The previous consensus was that they would not be approved, but you have seen the belgium p as that consensuschange. 3,742, thats the last tick for ethereum. Bitcoin pulled back after starting slightly higher to start the week. In other crypto news, the Trump Campaign announced yesterday it will start accepting crypto donations. They say donors can use any accepted by the product. Meantime, becky, this story making wall street. Rfk jr. Saying hes invested 24,000 in gamestop in an effort, he says, to show solidarity with Retail Investors over large institutional funds. He posted this image on x and said his administration would support the ape retail rebellion. He said lets punish predatory shortselling to the moon. By the way, i ride with you, and im not leaving, unquote. Im so curious what you guys think of this. Look, maybe theres theres a lot of problems like naked shorting and all sorts of other things, but i fear this is irresponsible in some ways because its just going to be promoting folks to go out and buy a stock that as weve talked about, if its a longterm investment at least. You could think of it as an investment, but the numbers dont add up. We kind of settled this thee years ago. There was this big current of social outrage that was misplaced thinking there was some kind of conspiracy there. I think what you give his Campaign Credit for is identifying these hieshs of belief that are out there on social media and trying to tap into them, whether theyre based on fact or not. Hes looking for voters, people to come into the trade with him. All weve been talking about is each of these candidates doing things to try to win elections. Youve got biden trying to buy in voters saying hes going to forgive all the Student Loans. Trump is advocating for cryptos. Its a crazy election season. I think its the third time weve seen it. Now potentially game stock is a way of demonstrating some kind of support for or in the case of truth social, potentially funneling money to a candidate. Thats a very unusual and new thing in the stockmarket and politics. Weve got a lot more coming up on squawk box in a moment. When we come back, microsoft announcing a new data center in africa. Well bring you the details in a second. Target with a new day pa point. Well bring you the reaction on wall street. As we take a break, yesterdays s p 500 winners and losers. Announcer executive edge is sponsored by ats in business. Next level moments need the next level network. 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 if i told you something extends your life span, improves your sleep, makes you more empathetic, and reduces stress and cognitive decline, you would think it was a miracle drug. But im talking about reading. Reading every day does all those things and more, which is why i started my book club, read with jenna. So start a reading streak, even if its just a few minutes every day, on the way to work, your lunch break, before you go to bed. Every little bit helps. The more you know. Good morning, everybody, and welcome back to squawk box. Were live from the Nasdaq Market site and times square and from paris today too. If you want to look at the futures, a little bit in the red. Andrew . Thanks, becky. New this morning, microsoft investing 1 billion in kenya as part of a new Ai Data Center that theyre going to put together thats in a partnership with a Company Called g42. The faculty will run entirely on renewable geo energy. Its a fascinating new tracking. It will look at cloud through a new regional cloud region. Its the latest. In the past six months theyve been making a ton of new investments. I should just say not only did they make a 4 billion investment right here in paris, brad smith was here with president macron last week. As i was coming to this event this morning we passed an enormous microsoft campus here in paris. It was a Global Business, but the real Global Business is making investments in so many other places, but a huge piece of this deal this morning is about energy and renewable energy, just how much energy all of this ai activity is going to take. Andrew, weve got breaking news. Target out with is earnings alert. It came out at at 2. 06. Samestore sales were down 3. 7 . Thats in line with estimates and previous guidance they had given, down three, to down 5 . They did talk about lower Sales Volumes for that decline. Target says its affirming its full year guidance, but if you look at the specifics for the First Quarter, it sees comps of 0. 2 . Adjusted earnings per share from. 59 to 2. 35. Thats a little below the streets consensus of 2. 19. Right now that stock is off by 3. 7 . I did speak with the Ceo Brian Cornell and heres what he had to say. While were not satisfied with what we did, we did exactly like we said we when going to do. Its grown po times since the First Quarter of 2019. Now its a 2 billion business for the Current Quarter. The stock is continuing to drop. Target is making cuts of a slew of items, 5,000 Grocery Store items. Lets go to the start of that quote. You know that that was work wed had in place for a long time. This is what cornell said about that. Whoever wants to take credit for it, we just hope the consumer takes advantage of it. He said this has been backed into our plans and guidance for the year. He said he hasnt been to the white house in at least 13 weeks. Lets focus more on what we see happening now with that stock price. Its down 6. 25 . What you can point to is the difference from what we heard from walmart last week. They announce its earnings and came out and said they were really benefiting because high end shoppers were trading down and trading to walmart. Those are people making more than 100,000. Thatsbeen walmarts biggest source of growth over the last year. You contrast that with what targets been saying and now, prompter, follow up with me a little bit. Ill find it myself in the script. In terms of what the consumer says, cornell says, we havent seen any significant change in the health of the consumer o every the last couple of quarters. One thing hes seeing is consumers rew returning to their prepandemic shopping levels, meaning theyre averting to what they did, waiting for the holidayings to stock up. He said for memorial day, they havent seen the big surge in people stocking up. They expect it for thursday and friday. Thats the same pattern they saw for valentines day, easter, and mothers day, and they say hes loo looking if shopping days. Wednesdays are leak saturdays. But saturdays are most important. For sure. Clearly walmarts for a variety of reasons, gaining some share. You know, they characterize it in in what we expect it to do. If you look at the full year guidance, it brackets the consensus and its on the high end for the full year of 8. 60 to 9. 60. A lot has to go right. They seem like theyre being careful and will invest in these price cuts. I did ask cornell about that, the idea that the streets a little higher. He said, look, the estimates will come and go, but were sticking steady with what weve said, however, the stock has gotten a benefit. Im not surprised. Obviously the whole market was in trouble. But 108 was the low and target has given some of that rebound back. Coming up, pollster frank luntz joins us after the break with just over a month to go before the first president ial debate. And a reminder, get the best of squawk box. Follow squauks pod on your favorite podcast and listen any time. lbeig bk. I cant believe you corporate types are still at it. Just stop calling each other rock stars. A