Were going to talk to larry kudlow about this in a moment, but Steve Liesmans at hq. That speech working in concert with a bunch of other data points around the world. Yeah. Well, you know, carl, heres what i think we learned about the market in the past 24 hours. Its okay eating a few more Brussel Sprouts when it knows there are some big, large slices of chocolate cake about to be served. The Brussel Sprouts are fed rate hikes. Before President Trump took to the lectern and congress, federal officials seriously looked at a rate hike. But that was offset and then some by a president promising historic tax reform, a 1 trillion infrastructure bill, and sounded far more moderate on trade and immigration than he has in the past. I believe strongly in free trade, but it also has to be fair trade. Its been a long time since we had fair trade. And lets note that the president did not mention punitive import tariffs or the Controversial Border adjustment tax. He also didnt say he would lower the Corporate Tax rate to 15 , only that hed lower it, and that may be a sign the president s already moving to compromise with higher rates of house republicans, although they are, in fact, lower than the existing rate. Most of it was old ground as far as economic proposals were concerned. Details remain lacking, but it seems that investors believe a more moderate trump has a better chance of getting his proposals through congress, and that makes the chocolate cake part of the meal a little closer and a little more realistic. Were going to talk about the Brussel Sprouts tomorrow. A quick programming note were going to have an exclusive interview with fed governor j. Powell live on this show tomorrow at 11 15 a. M. Carl . All right, steve, we cant wait for that. Thank you very much. As we said, joining us now, jared bernstein, former economic adviser to Vice President biden. With us at post 9, cnbcs senior contributor, larry kudlow, who has had his own recommendations on legislative priorities. Are you winning that battle or not . Well see. Well see. Im going to win a few and lose a few on this. I just want to say from my personal standpoint, i have not always agreed with mr. Trump down the line, in fact, on this program. Probably got me into some trouble. But in any case, watching that speech last night, heres what occurred to me. Great president s are optimists and project an optimistic vision. Last night, donald trump was brimming with optimism. Brimming with optimism. Start, middle, finish. Reaching out, asking for unity, directly asking house and democrats in a bipartisan way. His speech was full of civility and respect and persuasion. This is lost arts. Its things that weve been talking about, particularly the idea of civility and bipartisanship. It is by far the best job hes done, and the country i think the stock market today represents the country rallying behind President Trump. How long it lasts remains to be seen. Theres a million details going to come out from his budget, but it was just a magnificent, magnificent performance. I just wanted to say that, because you know what . I think it was riveting. Im watching this thing, and you know how people, like, sometimes you watch it and youre waiting for a train wreck . Wrong. Wrong. What you got is president ial modulation, as i said, and civility, and it worked. It was riveting. You couldnt take your eyes off it. Really quite remarkable. Investors, jared, seem to agree. Theyre pretty optimistic today, were seeing a stunning rally. Best day of the year for the dow, s p and nasdaq. Youre on the other side of a lot of these policy issues. Right. Would you agree with larrys characterization, especially as it relates to the markets, the economy and the view forward on the country . Definitely up to a point. And i was just thinking, listening to larry, of the contrast with the american carnage speech that trump gave in his inauguration. So, larry definitely has a point about a kind of a more moderate approach. Now, the problem is that that was kind of an isolated incident for donald trump, but people here have longer memories than just last night. Also, i think its really important. One area where i disagree with what larry just said is that the stock market doesnt represent the country. I mean, im not saying its unimportant. Im not saying it doesnt matter to people who arent rich because we have Pension Funds in there, but remember, 80 of the stock market is owned by the richest 10 of households. So, as the stock market goes is not how the middle class goes. And the problem that donald trump is going to have is that his policies have yet to really connect with middle class people, especially given the legislative barriers that he faces, which are really very tall. Jared, my friend, my love, my friend. I can see where this is going. Here it comes, jared. 50 . 50 this is a true fact. You know this. 50 of american households own shares. Own shares, right. And its not all direct. Most of its indirect through Pension Funds, et cetera, which are middle class. A lot of them are unions. Now, im not saying the stock market every day is perfect, but when you see one thing, you see another, there is causality today. Lets face it. I guarantee you let me just say one thing i guarantee you, jared that trumps approval numbers skyrocket after this. You may well be right about that. I guarantee you. I want to make a distinction for our listeners. There is the share holdings, and larrys right, its a little bit below 50 , about 45 of households hold some shares of stock. What i was talking about is the value of the market. 80 of the markets value is held by the top 10 , so the people who do well when the stock market goes up isnt the middle class. But the other thing id like you to address, larry, is this idea that donald trump can certainly put forth some optimism and talk about his policy agenda, but man, the Republican Party is way ungovernable, and its really pretty chaotic down here. So i dont see how he gets from a set of ideas, even repealing obamacare. Theres no plan. Theres no tax plan. Theres no budget plan. All right, jared, fair enough. No, its a fair point. But look, i just want to weigh in. Were talking politics. I want to get to Economic Policy in a second. But the gop is much more united than folks think and that newspapers are writing about. And by the way, im not going to like all of it, but theres much more united on this. The house, for example let me put this on the table. Controversial measures, of course, the border adjustment tax, which i happen to strongly oppose for a variety of reasons. I am told late yesterday afternoon, or it might have been early this morning, a meeting of conservative activists with white house representatives were told that the white house does, in fact, favor the border adjustment. The president last night went to the waters edge, didnt quite mention it, but in fact, inside the white house, the b. A. T. Is winning, and through legislative games, theyre going to allow votes for and against, but its going to be part of the deal. Including the current form that its laid out in the gop plan . Basically. That is correct. Basically. And that senator Mitch Mcconnell is going to make it easier. Hes got members who are violently opposed to it. Hes going to let them vote against specifics, but then hes going to let them vote in favor of the larger package, which will have the border adjustment tax, which, you know, jared, i think you probably like it more than i do. I dont like it at all. Well, i mean, first of all, youre definitely hearing different politics than i am. And you may well be right. My sense is that its just too heavy a legislative lift, especially given the opposition from those who would be hurt by the proposal in the sense that they can no longer expense their imports, so its very tough for businesses that are able to do that retailers, some energy folks. I agree. You know, its a very tough lift. I think more importantly, larry, senators from the states the important point about it is that this was their main pay for, so its really hard to do their tax plan without either the bat or some other pay for. Otherwise, youre really looking at seas of red ink thats going to lose a lot of republicans. Look in a pinch, you could cut spending to get through the payfors. And by the way, reconciliation is going to be whatever they want it to be, but thats just what im hearing, okay . The other thing that was so interesting is, last night was not a budget speech, so you didnt have heavy, heavy, heavy detail. Right. No question. But you had a lot of areas of detail, like immigration, like health care, for example. I loved his Health Care Section very, very much. Its promising. He laid out five or six principles. Theres broad agreement inside the gop on those principles. But let me raise one issue, all right . Nothing is perfect in life, okay . He mentioned a tax credit, all right . Which a lot of republicans have put in their bill. Many friends of mine and myself worry that a refundable tax credit or a straight tax credit is, in fact, a new health care entitlement. Right. And i dont want new entitlement. I thought we were in the era of getting rid of entitlement. And the congress has said that already, they basically want to draw that line in front of that. Im their spokesperson this morning. I dont you know, gop, were talking about the b. A. T. , now entitlement. Republicans are supposed to be for lower taxes, not import taxes, and theyre supposed to be for less entitlements, not new ones. Hold on. The health care thing has really been pretty distorted. I dont think that you could really say, larry, in good faith that republicans have unified around some replacement for obamacare. All they know is they want to get rid of it, and the problem that theyre facing kind of gets to what you were talking about. When trump says i want to make sure that you have better coverage than you have, and its going to cost less, you really cant do that. The only way you can have the only way you can increase access, which is the difference between republicans and democrats when theyre talking about coverage, is by and spend less money is to have tax credits and highdeductible plans and Health Savings accounts. And what that means is people now have to pay much more out of pocket to get health care. Theyre trying to really ratchet up, to really dial up the costsharing. Now, some republicans, i spectaculary likes that idea, but im going to tell you, trump voters themselves have said the highdeductible Health Savings plans, theyre not the kind of insurance we want. We want better coverage, more comprehensive coverage and for less. Thats not whats on the table. And they want cheaper coverage and lower premiums, more coverage. One of his best lines last night was were going to end the mandates. Were going to end the mandates and thats a twofer. Judge roberts back in 2012 said the mandates are a tax. I just want to amend the distinguished judge by saying theyre a tax hike. The problem is [ everyone talking at once ] one last point here. Its caused the death spiral for obamacare. Thats all. Larry, youve been pretty resolute that you want taxes tackled before Even Health Care . Or at least at the same time. But it doesnt look like its going that way. It does not, but im going to be the last guy to turn the lights out on that. All im saying is this, reconciliation can be whatever you want it to be. So, hear me out. Obamacare is a huge tax. Thats what it is. Thats what the judge defined it as. So, that belongs in reconciliation. And by the way, business tax reform, not the whole package, but the business tax cuts, which trump featured prominently last night, could go and be a tax to the same reconciliation bill as the mandates and the rest of the aca if i can [ everyone talking at once ] i wish we Economic Growth i wish we had time. Jared, make it quick. Okay. You cant maintain the preexisting condition coverage and get rid of the mandate. You have to have now im going to give it to you. You have to have Healthy People in the risk pool, and thats insurance. Yes. Listen to me, this is a key point the healthy have to subsidize the ill. Thats how insurance works. Listen to me, buddy, im closer to you than you think. Good to know. I am in favor, i am in favor of transparent subsidies by the federal government to those folks who are ill and preexisting conditions. I want a straightout spending subsidy. This is a great country, and we need to take care of the ill. I am with you on that point. Yeah. That is not a problem for me at all. Okay. Its a social safety net. I learned it from reagan. Just give it to them. Just give them the money and then lets get on with the other free market reforms. And the gop should make that clear, but they never seem to make it clear. Jared, larry, thank you, guys. Larry moving walmart shares a little bit here on that news about a border tax. Well watch that. Im just telling you, theres a meeting, nasty little meeting i heard about just before i got here. I would discount that prediction, but well see. All right. I hope so i hate the thing. Guys, thanks so much. Thank you. As were talking, we are still waiting but i love jared. For news pending out of mcd. Those shares are halted. Once we get the news or trade resuming, well get that to you. Steve easterbrook, ceo, joins us tomorrow on squawk on the street, 9 00 a. M. Eastern time. When we come back, were hours away from snap pricing the ipo tonight, trading on the nyse tomorrow. Will it be enough to spark a rally in tech, or i guess, a further rally . Then, ubers ceo, travis kalanick, says he needs help when it comes to his leadership skills. A lot more on what the president said last night, and more importantly, what he didnt say, when squawk alley continues. Dows up 245. 90 of the wors largest supercomputers run on intel . That means you can taka universe of data in your case literally and turn it into medical discoveries, diagnostic breakthrohs. Pi dont know whates colat is. But yes. Ngulity. Innovation runs on supercomputers. And supercomputers run on intel. You are super smart. And super bu ooh ufo false alarm, eyelash it is set to be the biggest tech ipo in years. Snapchat Parent Company snap inc. Pricing tonight, will be trading on the nyse tomorrow. How are we set to capitalize on snaps success . Jon fortt is in barcelona. Going to be a busy night, jon. Reporter yes, it will, carl, but first of all, a question about snap is whether its going to have the kind of global appeal that will have to really power its growth after the ipo. So, here in barcelona, its a great place to figure that out. This three years ago is where College Students told me that whatsapp was their number one musthave app on their phone. So, here i caught up with dominique del por. He is a board member at avendee, general manager of content for havas and i asked whether that has buzz with european millennials. Heres what he said. Absolutely. Uk, france, germany, south europe. Its really trendy. The big brands are coming in the discover part, and so, its perceived as the growing brand. Reporter the question is whether theyve got the sort of business momentum that they need to really make money here as well. Delport pointed out that they really just a few months ago started their big push here, but theyve got to be careful not to jam too many ads in. Still, he feels pretty bullish. Take a listen. This is the moment of truth for the platform. Im still bullish. At avast, we see that platform from day one. We see how the engineers are invested in creating new stuff, something that doesnt exist, and i think that its the right way to go. Reporter sounds promising. Sara . All right, jon. Stick around, because were going to talk more snap now. Lets bring in insight. Com founder Jason Calacanis and luke ventures managing partner gene munster. So, gene, what were hearing right now is there is Strong Demand to raise pricing ahead of the official pricing which well get after the bell today, but some Big Questions longer term about whether snap is a good investment. Whats your take . I think who knows what its going to do tomorrow. Its probably up just because, as you said, a lot of hype around it, but i think that next year is going to be challenging, because this is going to probably feel more like twitter than facebook. And the reason is that this is more about improving rpu versus growing the base, even though there is interest in europe as jon fortt was reporting. But the strategy is more about improving rpu. I think that sets up a valuation 30 times revenue. Facebook was 19 times. So, this is an expensive stock, so i think its going to be choppy for the next year. After five years i think it looks more promising as they get more into the camera. Whats your take, jason . What are you hearing about demand, how big of a deal this is and how snaps been doing on the road show over the last few weeks . Yeah, its this is a tremendous company, and i think this is really the story of the artist and the thief. If you look, evan spiegel in the five years that snapchat has existed has created four incredibly delightful features. Obviously, efemale raleigh messages, where the messages disappear, stories where you create short little videos that tell your life like a documentary, filters to put flowers in your hair, like jim cramer loves to do, and the final move, the spectacles, where you can record your life. And the thief, mark zuckerberg, has stolen three out of the four features and tried to destroy snapchat. So, the question is, you have snapchat, which has an incredibly artistic, fantastic founder in evan spiegel, who is up against a juggernaut in facebook that not only has zuckerberg stealing every feature and putting it into facebook, but hes convinced the instagram and whatsapp founders to try to kill snapchat as well, and you have instagram and whatsapp now stealing their features. So, the question is, do you want to bet on the thief, the artist who created these, or the den of thieves who are stealing all these features . And that is a really problematic issue for evan spiegel, but still, even with all of their might, facebook cant kill snapchat, and they keep trying. That to me says that snapchat is an Amazing Company and worth buying. Jon . So, i guess, gene, the question is do we have en