First Nicole Petallides in the New York Stock Exchange and nicole what was driving the rally today . Nicole certainly we have an opportunity to bounce back after two weeks we certainly had a tough run over 2400 dow points dropping 9 it was fromming to see the back to back gains gaming over 300 on friday and holding on to a decent gain of over 400 points thats 1. 7 the fundamentals are the same. Corporate earnings are on the rise, we have beneficial new americas tax plan, we have the budget in place so these are the things and of course the new infrastructure ideas for the two years ahead also help to give a boost so taking a look at the dow, nasdac and s p and i was looking at the yeartodate numbers because we saw the dow going in and out of positive tear tear tori yeartodate but the nasdac in the green for the year 2018 after a stellar 2017 so there you go right . We werent able to squeeze it out but a couple more days of this action we will see some up arrow and a lot of the folks feel ultimately youll be looking for value and there is room for the upside. I did mention the new infrastructure plan over the next decade 200 billion for everything from highways to airports and you could see some of these the dow, apple, dupont, boeing and American Express take a look at these infrastructure related stocks from akc ucs up more than 5 each, u. S. Concrete 2. 6 and engineering, so certainly some optimism back on wall street but no way, shape or form do they think its one way. They expect the volatility, they have a cautionary tone but for right now they will take a winning day wall street. Back to you. Melissa nicole thank you. David lets get reaction from our panel weve got liz peek from the fiscal times and Adam Lashinsky fortune executive editor and fox news contributor. Liz, wednesday we get the Inflation Report. I have thought by the way that a lot of investors are just going to wait for that Inflation Report before they either jumped in or got out more than they already have, but theyre not doing it, right . Well stocks went on sale. Look if youre impressed as an awful lot of people are with the integrity of the economy, the fact that the economy is just ro aring ahead and lets face it economists across the street are raising their forecast to 33. 5 earnings are going to be incredibly strong and look if theres any way well get out from under this towering National Debt and reduce our deficits its through growth so you know you have to kind of conclude that the trump agenda is working and people are still pretty cheered up about that. David well adam, if on wednesday, we get an Inflation Report that shocks to the upside , if its higherthanexpected do you think stocks will swoon again . Absolutely only because this market has become extremely reactive and traders are running around like people with their hair on fire or maybe their hair is on fire for all i know so short answer yes they already expect inflation an if its worse things will be really ugly david liz even in investors or plain old folks are as optimistic as you are about the economy and its effect on the market should you reconstruct your portfolio somehow . A lot of people have 401 k . Ive gotten a lot of questions over the weekend people say maybe i can switch to a fund that has more bonds in it what do you think . I think its the wrong time to buy bonds. I think if youre again positive about the economy and a little worried about inflation always thats been a recipe for buying equities. It could mean you look at different sectors you look at things Like Companies like caterpillar tractor that would benefit from Infrastructure Spending, maybe avoid those companies where dividends play a large part in returns, but look, inflation so far lets face it. We see one pick up in wages, capacity out ill specialization the economy is only about 80 its not anywhere near stressful david so theres huge room to grow. Yeah, there is. David adam what about you . Let me ask you personally are you changing your own portfolio your retirement portfolio . No, not in the least and so i think the very first thing that liz said a moment ago was the true its thing which is that the economy is doing well and that story hasnt changed in the last two or three weeks certainly not in the last 10 days. The only thing that people should do especially with regard to the Retirement Savings is always know about where, how they want that allocated stocks versus bonds versus long term or shortterm and they should adjust when the market adjusts, not because they want to make a call, because most of us cant make a call. David and we certainly cant get ahead of the market right, liz . Thats what weve all learned the hard way i think. Yeah, timing the market is pretty tough particularly with this kind of volatility. David the panel is sticking around with great advice for everybody here. Melissa youve got a special guest. Melissa hes at the center of the action this is tom farley, the president of the New York Stock Exchange and tom its great to see you again. You have a birds eye view from down on the floor and im not asking to predict whats coming but certainly you can feel the vibe. Do you think this volatility is here to stay for a while what does it feel like . Great to be with you again melissa. Dare i say it was a pretty normal day. Volatility came in a little bit today, industry volumes were more typical than the trading last week, you know, it was a good day in the market prize wise but from my perspective even better because it felt like a normal day. Melissa what if the last almost two weeks were like that . You know, ive anyone who will ask ive been saying the same message which is markets go up, markets go down, thats what they do investors should make long term decisions not day by day decisions based on what theyre seeing on tv or the particular movements in the stock market for that day and that panned out last week. If you looked and you held through what was it on monday, the dow was 24, 300 and on thursday it was 23, 800 and you could have in a panic sold everything you had and now its right back up above either one of those places, so my advice is just then calm down, relax, the underlying economy is good. The stock market has been very good and in fact its still up 14 the dow jones since the night of the election. Melissa there are a lot of people out there blaming electronic trading for amplify ing the moves. What do you say to those people . Its always good to find somebody that you can, you know, you can poke at and say oh, this is whose responsible for market turbulence but its just simply you cant do it. Its always a combination of humans and human judgment and emotion as well as machines that have been programmed to behave in a certain way but whats happened over the last week, its normal. Markets go up with low volatility and they come down with high volatility and weve been nearly two years since we had a period like this. This is the normal functioning of the market and everyone should relax and take a long term perspective. Melissa do you think Algorithmic Trading amplifies the moves or do you think thats a fallacy . No, i think the move on monday was Something Like the hundredth biggest decline in the history of the dow on a percentage basis . It was a big move but it wasnt the end of the world so i dont think todays modern trading is any different than yesterdays or 20 or 50 years ago. Youre going to get volatility. Its the way markets work. Melissa yes, did you hear any complaints from anyone wanting to know what was going on or wanting to know if, you know, there were other people stepping ahead of them in their trades . I mean, did you get angry phone calls or does everybody understand thats sort of business as usual . Not angry phone calls just a lot of concern because when the markets moving around like that people are worried. A lot of your viewers are worried about their nest eggs for example. I will tell you on monday and thursday there was a lot of talk about well what if the market keeps going down and we trip one of these marketwide Circuit Breakers so that was something we spent a lot of time thinking about. Fortunately we practice once a quarter with the entire industry but that was a cause of some focus but otherwise no from the Exchange Perspective everything kind of worked as advertised. Melissa you guys are there youre humans you have it under control youre out there to tell everyone you dont need to panic weve got this thing we can see people behind you its not just the computer taking us on a wild ride, right tom . Yeah, it helps and in fact as i was walking over to your studio here there was a situation where we had a stock that had an imbalance on the close and it gave me great comfort to see a number of people gathered around the sophisticated machine to apply human judgment and i kept walking to your studio with full confidence it would be worked out appropriately. Melissa tom farley, we appreciate your time come back soon. Thanks melissa appreciate it. David what a calming guy. Melissa i know. David by the way, well have bart chillton on later, he think s there need to be regulations to deal with the volatility in the markets specifically with some of the new Financial Instruments well play a little of what farley had to say and get bart to respond. Meanwhile investing in a Greater America the white house unveiling the president s 4. 4 trillion budget plan today, a budget that includes 200 billion in federal funding for infrastructure, 23 billion for border security, 85. 5 billion for veteran care and 17 billion to combat the Opioid Epidemic this on the same day as the president unveiled a huge 10 year 1. 5 trillion infrastructure plan for new investments and to shorten the permitting process, the president during a meeting with officials today says a plan is of great importance. Take a listen. President trump this is of great importance but its not nearly in that category because the states will have to do it themselves if we dont do it but i would like to help the states out and were doing that with a very big investment. David liz peek and Adam Lashinsky are back with us. Adam, i dont really see Government Spending, infrastructure or stimulus plans as helping the economy, generally, very much. Do you . I know, its funny i was waiting to hear what youd say davis david because i knew that about you. No, i think they can but they need to be done responsibly and so were seeing a very strange experiment and governance here of republican president promot ing Spending Plans that are way out of whack with responsible budgeting and so david well try to convince conservatives like me that Government Spending good work in certain instances. And i dont think theyre going to do that david so its a fas nateing story. David well one thing, liz one key point and im not a big believer in Government Spending programs and i dont believe theres the Multiplier Effect outside the private sector that is but there is a key metric here and it may seem a little ne rdy, but im going to put it up on board because its not necessarily the dollar amount of the deficit thats important. Its the deficit as it relates to the gdp that is if you have a big deficit and the gdp grows tremendously as it did with Ronald Reagan you wont get too much out of whack. It was 4 deficit of didnt and bill clinton is the big winner here,. 5 partly because he got the peace dividend he could bring back Government Spending tremendously because of that and then his successor george bush comes in, spends a lot more money because of 9 11 and then youve got barack obama 5. 8 where do you think trump is going to wind up in that scenario if he gets his Infrastructure Spending . Well i think the ratio is going to be smaller but the whole point of the infrastructure plan he rolled out was its going to rely more on state and local government funding and more importantly, and this really is something we need to talk about in this country, it relies on private dollars. The government the federal government doesnt have a lot of money to spend. The private sector really does. We have a lot of liquidity and credit available out there. Thats where the money has got to come from and by the way this is not a radical idea. In europe they always see d countries its a much higher percentage of Infrastructure Spending thats coming from the private sector than it is in the United States. Our Municipal Bond markets always taking care of spending on infrastructure but now those entities are pretty much maxed out as well. So i like this program. I think its exactly the right way to go. David adam thats the one area that trump could get free market conservatives like myself, perhaps you could pull me along kicking and screaming if you will if you could suggest that look the bond market might take care of most of this. Theres going to be mostly private sector, the government enabling the private sector to do the work. What do you think . Well i would just like to say one good thing about this president and this plan which is that his ideas around permitting is actually something that he knows quite a lot about. David absolutely true. And would be helpful and the rest i think is going to be a disaster and nonsense. David well liz, i think adam brought up a great point which we hadnt mentioned is this is a president who spent his whole life dealing with stupid government regulations trying to overcome them and in fact he pointed out that the wonderful example maybe its an example used a little too much, but of how he got that ice skating rink in central park working after 10 years of the government trying to do it, the city government, he did it under budget and under time in about three months, so whenever youre able to trump these trouble excuse the pen but trump the terrible regulations and speed things along its good for everybody. Again other countries have done this. We take up to 10 sometimes 20 years to even add a runway at an airport. Its outrageous and it drives up cost. David thats the whole point right because the cost, everybody wants a little piece of the action. Thats exactly right. I really think two prong thing, private money, lower cost through better permitting thats push that should be on right now david competition is the key and the problem with government projects its a monopoly. I think everybody would agree liz and adam good to see you both thank you very much. Melissa . Melissa well well have more on todays big market rally but were also keeping a close eye on capitol hill, the Senate Voting within the next hour to begin a free wheeling debate on an empty bill tackling immigration, dreamers and the border wall, a live report from washington coming up. David meanwhile the president is touting a big boost in military funding while slamming more than a decade of wasteful spending fighting in the middle east. Melissa israels Prime Minister issuing a stern warning after a weekend of air strikes in neighboring syria. How far could this escalate, rebecca hendrix, a military fellow joins us next. You want to use the syrian territory to attack israel to destroy us. No matter how the markets change. At t. Rowe price. Our disciplined approach remains. Global markets may be uncertain. But you can feel confident in our investment experience around the world. Call us or your advisor. T. Rowe price. Invest with confidence. When it comes to travel, i sweat the details. Late checkout. Downalternative pillows. And of course, price. Tripadvisor helps you book a. Hotel without breaking a sweat. Because we now instantly. Search over 200 booking sites. To find you the lowest price. On the hotel you want. Dont sweat your booking. Tripadvisor. The latest reviews. The lowest prices. Mom stuffynosecold nosleep mouthbreather just put on a breathe right strip it instantly opens your nose. Up to 38 more than Cold Medicine alone go to breatheright. Com today to request a free sample. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. David money missspent, President Trump unveiling his infrastructure plan but not without criticizing Previous Administrations Foreign Policy blunders, wasting american treasury in various middle east earn conflicts. Take a listen. President trump the trillion dollars in the middle east and it is far worse than it was 17 years ago when they went in, i have to say went in. Im being nice. So its a very sad thing. David now, all this after israel over the weekend blaming iran for the downing of one of its own jets while that jet was on a Bombing Mission in syria, sparking fears with all out war in the middle east here is rebecca a senior fellow from the hudson institute. First lets deal with whats going on between israel and iran because this could get very hot particularly since israel is a nuclear nation. Is israel simple question going to war with iran . Israel has been, you know, taking care of its own National Sovereignty and in this particular case, you know it shot down an aircraft that was flying in its own air space, and israel had been very clear that it will not allow iran to use syria in particula