The dow. It accounted for about 74 points of the declines of the dow that came after we heard from jeff bezos, Warren Buffett and jamie dimon that they will try to take on healthcare on their own. The reaction from healthcare was swift and serious. This morning, though, green arrows across the board. The more you talked to people yesterday who tried to understand what they were doing, i think the selloff may have been too far i spoke with ana gupte who was on with us, she had time to digest it. She said this is a buying opportunity. Anything that happens will take years. If will tait will take a lone what i did hear a lot of yesterday is other ceos looking at what theyre doing and saying we should do this, not necessarily to gang up on this. But looking to cut their own costs. The question the bigger the pool you get, the more complicated it gets. You could see the whole Business Roundtable deciding were going in together as a collective. You have younger workers this gets interesting. Young workers at amazon for the most part. Older workers at the berkshire companies. When you think about how the insurance pools work, you have to think what companies could you put together to make the pool its a big deal for american busines business they represent about 131 Million People that they insure. Its a reflection of america i applaud the private sector for trying to answer this. History is littered with the what seems a novel idea, lets get rid of the profit incentives so we dont have to waste the money on profits lets do it all on delivering the service. The next thing you know, no one is there minding it. At least the private sector is trying it here socialism works, we just have not done it right. I need to know whether youre this this pullback is enough to satisfy you is it 2 . Just over 2 . Month to date, the dow is up 5. 7 yes or no, pull the trigger or wait . When youre up 80 this morning on the futures, we lost 540 in two days, this could turn around 80 doesnt mean clear sailing. If this is a reversal today and goes down again, then theres more to go you waiting . 5 10 . You wait for a correction, but no one buys the correction this is what we discussed what are you going to do . Youre waiting im sitting on my hands your thumb is out in passaic, new jersey, trying to get to florida. No, im down in patagonia right now. Thats where the train is you going to read this . Look at treasury yields suddenly you should know, even though im looking at you, new yorks finest is right behind you watching us. Thats cool i love those guys. You were talking about pulling the trigger. There he is right there. Thank you thank you. So as much as i can focus on your face, we have the finest with the helmet on hes assigned to me really. Yes i wish by the way, today im all about unity. You will not get me involved in any of your i like this optimism. Its 6 04. 30. Tenyear was above 2. 7 . Did someone put crazy glue on the seats of all the democrats were you watching . I watched it looked like they were trying to, but someone put epoxcy epox epox on the seat. President trump delivered his first state of the union last night. The stock market rally was not lost in his message. The stock market has smashed one record after another, gaining 8 trillion and more in value in just this short period of time. The great news the great news for americans, 401 k , retirement, pension, and College Savings accounts have gone through the roof eamon javers has some of the highlights from the speech, which seems to be relatively wellreceived. Thats right. Hes been such a nontraditional president of the United States with the tweeting and controversies over the past year, but last night looked very much like a traditional state of the union that other president s have delivered he laid out some of his policy agenda for 2018 and hit some emotional highlights, inviting a Police Officer and his wife who adopted a heroin addicted baby and the north korea defector raising his crutches over his head another emotional moment and the president put a price tag on his infrastructure proposal saying he wants 1. 5 trillion, higher than the 1 trillion that the white house was talking about last year. Heres what president said last night. Together, we can reclaim our great building heritage. We will build gleaming new roads, bridges, highways, railways, and waterways all across our land. And we will do it with american heart and american hands and american grit. Joe was talking about some moments where democrats were scowling in their seats, not standing and applausing for some of the applause lines that republicans were jumping to their feet to cheer. One was around immigration the president said he was open to a deal on daca. Here is how he put it. So tonight i am extending an open hand to work with members of both parties, democrats and republicans, to protect our citizens of every background, color, religion, and creed [ applause ] my duty and the sacred duty of every elected official in this chamber is to defend americans, to protect their safety, their families, their communities, and their right to the American Dream, because americans are dreamers too the president there not talking about one of the controversies thats been consuming official washington this week, thats the russia investigation. No mention of that from the president of the United States during his state of the union. Looking ahe ad to what he sees a two big legislative accomplishments of 2018, immigration and infrastructure the democrats chose joe kennedy iii for their response he set a different tone. Heres what he said. Many spent the last year anxious, angry, afraid we all feel the fractured fault lines across our country we hear the voices of americans who are forgotten and feel forsaken so joe kennedy saying americans feel forsaken. Theyve been angry and afraid over the past year the president striking a much more unified tone the white house said of his delivery in the state of the union we will see whether the president can move forward on immigration and infrastructure both face challenges for immigration, the challenge is democrats, whether theres a deal there that he can sell to his base on infrastructure, the challenge is conservative republicans who dont want to spend a lot of government money on a large government item like infrastructure they would like to see more state and local spending and private spending can he get those conservative republicans to sign off on that spending in terms of how this speech was drafted and created, it had a more optimistic message and note than the ninaugural speech the speech given in davos, gary cohn had a big hand in steve bannon no longer a part of the administration who do you think was behind this one . A lot of cooks in the kitchen there. Gary cohn was involved in drafting this speech h. R. Mcmaster was involved i spoke to Steven Miller briefly in the west wing yesterday he is on the nationalist wing of the Trump Administration i asked how the drafting of the speech was going, he said i wouldnt know. Clearly a lot of people involved i wouldnt know as i wasnt part of it signifying i wasnt part of it im not in the loop. I dont know if it was an offhand comment or if he wasnt involved on a hot mike the president said, yep, im releasing that fisa deal. There were rumors it would come out last night could it be today . It is entirely possible the issue here, remember, isna t is that devin nunes put together a memo which republicans suggested shows evidence of malfeasance in the process of drafting f ining some of the fia orders so the question is whether or not that will come out today Sarah Huckabee sanders issued a statement yesterday saying there was no plan to release it. And reporting that it was out yesterday was false. That could change. The Washington Post said that kelly said they were reviewing it and it might take several days on a hot mike he said 100 im releasing it. The white house yesterday said he had not read it yet and wouldnt make a decision until after the state of the union okay. Thank you very much you bet joining us now to talk more about all of this is evan bayh and judd gregg, both of them governors as well. Thank you for being here today senator gregg, what do you think of the new message being sent out, that this could abbbe a a bipartisan year. First of all, it was an upbeat speech. So upbeat i thought joe wrote it im all about unity thats what im saying. The simple fact is they have no capacity now to pass anything without 60 votes in the senate all the rick o. Wreeconciliation used up. If anything is going to past legislatively, it has to be bipartisan he picked two years where theres opportunity for that, Immigration Reform and infrastructure hopefully they can reach an agreement. The nation would like to see cooperative activity and governing coming out of the congress it looks like theres two areas for potential cooperation, immigration and infrastructure, but both are far apart on what the democrats would like to see. What do you think has to happen . Lets start with infrastructure. Becky, what needs to happen is that the leaders in both parties, including the president , need to show a willingness to compromise and a willingness to stand up to the bases of their two parties, because theres extremes on both sides that led to this gridlock that we got. Immigration, there is work to be done i think some heavy lifting needs to be done there on the immigration front, it sounds like there could be a twopronged situation where theres agreement maybe we fund the wall, if you agree to go ahead and say yes to daca. All of these additional things wrapped in by cutting the immigration issues now, is that something you think the democrats would say okay to . There are some in the Democratic Party who are behind shutting down the government a couple weeks ago because they didnt want to compromise on anything they need to be willing to compromise on the hard right, the president was speaking to this last night, they need to show willingness to compromise too as we come towards that march 8th deadline where the daca children who came to this country are subject to being deported, that will focus the publics attention and theres a deal there to be done if in the senate, senator schumer will try to encourage a compromise path. But in the house then, the president he showed some willingness last night to do this, hes willing to stand up to that hard right in his own party. On the infrastructure side of things, the big question is funding. The president has a proposal theres some money from the private sector theres some money from state and local governments, but theres going to have to be a federal component to that, too in general, i agree with what judd hadto say its a good speech, delivered well, struck the right tone. Now the hard part comes, thats backing up the words with deans. Governor senator baye, if there were 48 of you in the senate, would do that deal youve been in here enough if the president said well do daca, we just want to secure the southern border better than it is now, maybe its not a contiguous wall, but you want to use whatever technology you can to secure it a couple other things, theres a deal there for people like you but there are no people like you. Would you have had crazy glue on your chair last night when he says, gosh, good things are happening in the country the dow is up 50 . They didnt even stand for that. There would be a deal if there were people like new there unfortunately not everybody in kcongress is as reasonable as becky and andrew who are with you today. My own personal view, i think judd would agree with this, notions of civility and respect are important. People should have attended last night. They should applaud for things like the stock market rising they looked silly they looked silly. Like a caricature. I dont know they better watch it or they wont win in november and take back both houses the dome democrats need to willingness for bipartisan compromise this has been around for a long time a few years ago someone stood up and screamed to president obama that he was a liar at least we didnt have that last night the bottom line and the point i leave you with, we had gridlock for a long time. Some of that reflects the extremes in congress we have to take a look as americans in the mirror and realize we have more in common than we do that divides us weve been accentuating those differences for too long its all about unity. Mrs. Gregg and i put that speech together for the president i would think so. I know you work closely together i agree with everything that evan said. Especially the fact that we what you have to do when youre president and what you have to do when youre democratic leaders, you have to step on the toes of your base. Doesnt do good to step on the toes of other guys you have to step on the toes of your base to get things done there has to be some of that i think the president laid out an acceptable proposal in fact, if you think that hes raised the number from 800,000 to 1. 9 million that hes willing to consider getting a pathway to citizenship for, my goodness, it seems to me the democrats are snatching defeat from the jaws of victory if they dont take that deal and run with it. They normally would they cant that would normally be his base, theyre furious. It brings the question of who is the leader of the Democratic Party now. Only the leader of the Democratic Party can step on the toes of their own base trump said he would take heat on immigration hes taking heat there are people who dont want anne coulter, Laura Ingraham or whatever who will step on the toes of the Democratic Base now. Nobody. It has to be schumer. It has to be senator schumer he controls the votes. The only place they need democratic support to pass legislation is in the senate sfat e senator schumer has to be allowed to allow 8 to 10 of his members to vote on immigration i would hope it would be a lot more it should be but thats the guy who controls the state of play now as to who anything gets done he is still stinging from the shutdown he should have learned from the republican shutdowns, that shutdowns dont work politically for anybody who causes them. We learned that a couple times as republicans i would have thought he would have understood that this may be a case where good politics and good policy are one in the same. Agreeing to more Border Security, more meritbased immigration, thats the right thing to do for the country and also smart politics for the democrats and senator schumer. You dont have a gray hair, judd get back in there, will you . Try one more time. Talk to my wife, joe. You will get me in trouble evan bayh, judd gregg, thank you for your time. When we come back, the futures pointing to a pounce back up by about 80 points. Make that 94 points for the dow. S p up by 11, nasdaq up by 23 we will get you ready for todays trading session after this lets begin. Yes or no . Do you want the same tools and seamless experience across web and tablet . Do you want 4. 95 commissions for stocks, 0. 50 options contracts . 1. 50 futures contracts . What about a dedicated service team of trading specialists . Did you say yes . Good, then its time for power e trade. The platform, price and service that gives you the edge you need. Looks like we have a couple seconds left. Lets do some card twirling twirling cards e trade. The original place to invest online. You know whats not awesome . Gigspeed internet. When only certain people can get it. Lets fix that. Lets give this guy gig really . And these kids, and these guys, him, ah. Oh hello. That lady, these houses yes, yes and yes. And dont forget about them. Uh huh, sure. Still yes xfinity delivers gig speed to more homes than anyone. Now you can get it, too. Welcome to the party. Welcome back to squawk box. Joining us is Katie Stockton and jeff zout from Raymond James i will start with jeff this may be a technical sentiment type comment we will a few 300point updays we actually got sort of bored as were moving up 45 in the averages then you get two days, one 70, three 30s, then the vix goes up. The Mainstream Media goes crazy. Thats how its supposed to work because it will keep going for a 2 correction we get all kinds of fear instilled in the market thats right. We think the secular bull market began in 08 indexes went down because banks kept going down into march of 09. Our proprietary longterm model flipped positive in 08 and never had a negative signal since then the intermediate and shortterm models were positive they did target the first potential downside vulnerability. This is a secular bull market with years left to run katie, how would we know if this 2 weve gotten so far is the beginning of a 10 , 12 , versus something shallow so it start slowly and its a dr drip, drip, drip when it happens quickly, they dont seem to last long. Is this shallow or deep . Its hard to say. When it happens quickly, its a shortterm, counter move a buying opportunity what we noticed is that the shallow pullback like weve seen in the last two days is quick to affect sentiment sentiment is the biggest risk to the market now people didnt get negative quickly . They did, but not quickly enough i think we need another several percent down to get us to that point. Are you listening, andrew hes not in not true. You are on the train. So 2 should he wait for ive been on the train for a long time. I think a great rule of thumb is to look at the 50Day Moving Average. We are stretched above these 50Day Moving Averages we would welcome a pullback to that level what is the 50Day Moving Average . Around 2700 for the s p cash. Thats 4 , 5 . Something like that. Thats reasonability this would work off the sentiment excesses the market has and would be associated with increase in volatility there were a couple weeks in january where we said if we dont have some type of reversion to the mean, well be up like 4,000 percent this year or something you knew that that cant happen even with this pullback, we are looking at the best month to date there has to be some sideways action because its up doesnt mean it has to go down immediately. You have to focus on the shortterm momentum gauges, and they all went negative in the last two days. Thats after having been positive all month we need to respect those momentum ga