guidance was cut for a couple of time, numbers cut. they just did the number tonight. if that stock goes up tomorrow, that's the tale that once the numbers are cut, your stock is somewhat immunized from the downside. that's what we want to see. like i say, there's always more work. i try >> good evening, everyone. i'm larry kudlow. this is "the kudlow report." stocks continue to roar. you know what, folks? this is great. americans are making money. they're gettingwetty inting we. now if only the government would just keep its paws off we would all be better off. >> and this also made big news today. we have a bipartisan gun deal. will it pave the way for gun

violence legislation in congr s congress? and finally, president obama submits a budget. it is completely anti-growth. i ran the numbers. substitutes a trillion dollars in spends cuts for a trillion dollars in tax hikes? bigger government, more spending, absolutely wrong. this is "the kudlow report." >> the dough and nasdaq all had their best three day winning streak this year. good evening, bob. >> larry, it's been quite a day. let's take a look at the highlights. the s&p 500 and the dough close at hi tore rick highs. what exactly is going on with

this market? the traders have put a market friendly spin. until they felt a recovery was sustainable. and that was the signal. traders believed that the feds are going to keep up stimulus for the foreseeable future. this has been one of the most frustrating four days for active traders. many believe that that lousy report on friday would be the right one to sure up the market and that's what they did. the bottom was only a few minutes after the market opened on friday exit's been pretty much straight up since then. >> those short sellers just got

crushed. here now we have carol roth, a best selling author. and also tonight, we welcome former white house press secretary robert gibbs. >> there is virtually no inflation. profits are rising modestly and that spells a bull market. plus japan is pouring money in as they should.

>> i don't know where you're getting the numbers is all i worry about. >> i am looking at a quarter that is down 6%. so for me, i'm not seeing that growth. we have two out of the last three quarters. i'm not seeing the growth as the catalyst. >> let me say one thing. i know what they do. maybe they will be right, maybe they will be wrong. here's what i'm saying. the economy will probably grow at 3%, better than almost anybody believes possible. that is what the data are showing. therefore i'm willing to argue that the profitability of american companies where the bar has been set very low will once again exceed expectations.

>> i think pessimists like me would have to cough up that they have been wrong. we have had a ratio of 4-1. on the other hand we have had companies beating their estimates as well. i think alcoa was a game changer. >> that's a great point. and i think company's ability to beat estimates. >> here is something. had a relatively optimistic point of view. not bad at all. gold falling big time. when gold falls and the money goes into productive assets, i just love that. that was one of the backbones of the reagan bull market and the clinton bull market. i want to ask you about gold and

why other commodities are also going down. >> i don't have a good answer for it. i think it's a squits frenic market. everybody has had an expectation that maybe we would have an end to the qe. i don't agree with you on the growth profile. i would be thrilled to see that growth. >> it's not going to happen all year. >> the economy is basically in a 2 to 3% growth range. it's not in recession. all i'm say something america is stabilizing at this point and it's a good thing for stocks. and the other thing i want to say is for all this alleged money creation and pump priming, the inflation rate year on year

on the consumer price deflator. you couple all of that and throw in japanese liquidity, i'm telling you this stock market has legs. >> it's the expectations that have legs. >> i don't think there is going to be five, six percent earnings growth but it will be better than wall street was looking for. >> don't you think a lot of that has been financial engineering? that doesn't shut out growth and

the other part we're having is everybody is leaving the work force and going on social security disability which is a terrible idea. so it ain't perfect. i'm not making that case. i'm just saying that all you bears have been wrong. all you short sellers have been wrong. all you gloom and doom guys have been wrong. i want to have some absolute fun. i want to go to our established guest. do you believe, this is a political question. i'm not going to put you on the spot. >> i'm taking notes. >> do you believe that people should be calling this the obama bull market? they don't but they did for reagan and they did for clinton and it's add that your group has not taken credit for this. >> i'm going to give you two answers. the first one is that i'm

reminded that we ended our day in the white house. and i do remember reading the wall street journal editorial page in march of 2009 when the market hit its lowest point and it's the obama market. he owns it now. >> should this be labelled the obama bull market? should it be? >> i think it's fair politically. with rosier growth predictions and in fact higher interest

rates than i think are expected, i'm not sure how long he gets to stay. >> you think they are right not to crow about this? >> all i will say is we had a stock market rally in the second half of 1982, once that market started rallying, guys like me proclaimed it. we needed any piece of good news. we're going to come back. thank you very much. now, we have a bipartisan deal in the senate on the only part of the new gun control push that ever really had a chance. that's going to be more background checks. republican senator who made that deal today. free market.

i'm kudlow. we'll be right back. ♪

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to own firearms and we do have a series of measures that actually re-enforce and better protect second amendment rights. it's a true spcompromise and i think trying to make it a little

harder. >> background checks will cover all sales at the gun shows and internet? >> and private transactions between friends or neighbors or family members they would not be affected. >> they are worried about the straw horse effect. how do you handle that objection? >> there is a separate piece of legislation. that is already illegal.

as you and i both know, there is no perfect solution. no single law that is going to solve all of these problems. i do believe that our legislation would make it more difficult for dangerously mentally ill people to acquire guns and that's progress. >> i understand that would be a felony if there is a failed criminal check or a failed mental illness check that would become a felony. some people have called for ten-year prison sentences for that kind of felony. your take on that? >> well, if people knowingly and fraudulently try to defeat the system or they -- they lie in the process of trying to do a background check, i think we should deal with that pretty strongly. that should be a criminal offense and it is.

>> the high capacity am in addition magazines, that's out of this bill? all that stuff is out? >> there's nothing else except a series of measures that protect second amendment rights as owners like allowing people to buy a handgun in a different state. my bill would do that. and i think there will be amendments from other senators who will try to impose who knows what kinds of gun control. i will oppose all of those. what i'm trying to do is make it a little harder for the people who shouldn't own them to get them. >> what's the nra position going to be? >> they're going to oppose it. i 'm disappointed but not shocked,

shocked. >> i haven't actually directly spoken with senator reid but i can tell you that he has committed to be the first amendment. it would strike all of the language. if it goes too far. it would replace it with our language. that will be the first amendment. i'm optimistic. after this i don't know what comes comes next. real really. >> criticizing republicans who want to fill beibuster every si

step of the way. are they going to become the it will get on the bill. i don't know how my amendment works out but'm optimistic. republicans have different ideas. >> people do. i think it's fair to say. within the law, within the constitutionality. i'm a second amendment guy.

you are, too. we'll see. >> there you have it. many thanks. sorry let's bring back our next guest. president obama wanted more. this background check is just a tiny sliver. >> not at all. the agreement today means that this time will be different. different than after columbine. different than after giffords was shot. i think as senator said, and you did, the background checks are a

big chunk of what needed to get done here. i think the statement you just heard that background checks is not gun control is the single most important thing that has been said. >> the president started out with very harsh political language as you know right after newtown. he wanted assault weapon bans. never knew how hard getting anything done would be. this is a senator from west virginia. a moderate who represents a red state and a conservative that represents a blue state. that's a good mix for breaking what ails washington.

it's got a long way to go. as the senator said, this will replace the underlying bill. >> are the republicans risks a real political problem here by obstructing every vote? >> i don't think so. what's amazing about this is how incredibly modest it is. after newtown and the president's demands, when you look at the sweeping gun control pushed through new york state, this is nothing. it's a big gun state. >> nor should they.

those are kuconstitutional righ and people have to defend themselves. >> the president underestimated the strength of the grass roots movement. i think that will make the republican party look bad. >> i don't think it makes us look bad at all. what would be worse would be compromise beyond what was put forward? that's a greater danger. >> i -- you can inject. you're going to be here for a while. >> and you will go to another major social shoe and that is immigration. tens of thousands of pro immigration reformers rally in washington today. we will take a look at who's up and who's down and what is the senator's future as a leading immigration reformer next up on kudlow.

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>> one issue was board of security do you think they will ever agree to immigration

reform. the future is. >> his only future is to stick to his guns and move towards the more equitable immigration. this is not scientific. but the national review runs polls every day. as his career on. 35% support. 65%. national review online is the conservative state. >> he is no doubt walking a tight rope. i think roger is 100% right. a regional congressional party

dominated mostly in the south. or whether it is the opportunity to win the white house and truly be a national party. >> we will never have -- homeland security, we will never have a perfect count of border security. we won't have that. if that becomes a condition for any kind of legalization, it will never work. >> i think the compromise will have some very strong border security measures that will have to be in place for some amount of time. they are likely to be extended in terms of the number of years. but i think you see all of the different aspects of this coming together across different party line lines.

>> i happen to be pro-immigration reform, as you may know. when they unleashed the detainee, that was lawlessness. >> there are going to be events in the news and things like that that happen that are going to make this trickier than most people in washington -- most people have checked the box we're going to get this done. i think it's going to be not the easiest path. >> i got to get out. the president releases his new budget. and if that all were not bad enough it goes after putting your retirement wealth. former ceo director and robert gibbs is going to defend obama budget policy with roger stone looking on. stay with us all up next. this is for real this time. step seven point two one two. verify and lock.

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>> let's get right to it. the president releases a budget. john is live in washington d.c. with all the details. >> good evening, larry. it's a 3.7 trillion dollar budget. now he's trying to score some compromise between those two. there are two big slugs of new

tax increases. that includes how both the buffet rule which would insure a 30% tax rate and would limit to 28% for top earners. but you have also got a second series of tax increases that are meant to offset other tax benefits provided to other middle class workers. you have an increase in the estate tax. they want to limit the tax benefit for iras. so that their income would be taxed at ordinary rates. he says those breaks are the kinds of things that simply cannot be justified. >> there's no excuse to keep

these loopholes open. >> all they do is allow folks who are already well off and well connected game the system. >> now larry, the president clearly is not going to get all of these items but the question about the budget is does it effect negotiations between republicans and democrats? that's the purpose of his providing that chain cpi proposal to cut the increase over time. also why he is having senate republicans to dinner right now. but one political reaction won't help that process which is that the head of the house republican campaign committee this afternoon criticized the president for going after seniors with that chain cpi proposal.

>> paul ryan has advocated that. >> this is where robert gibs and i will have serious disagreement. what happened here is the obama budget gets rid of the 1.2 trillion dollar budget cutting sequester and replaces it with more than a trillion dollar tax hike. it will slow the economy and damage unemployment. there are other tax issues that will come up in this thing. that's the way i see it.

baesically they are spending a trillion dollars more and taxing a trillion dollars more and that is exactly wrong for this economy. >> this is completely underwomening. house budget, 4.6 trillion dollars. president with the benefit of more time and to study the situation. which means, you know, he is taxing 700. it's hard to understand why this is viewed as a compromise. >> maybe this is a symbolic thing. this is just not going to work.

the gop is not going to say end the sequester. they already gave into $600 billion. >> i think it's an unusual proposal. i don't quite get it also. i do think the president's right in trying to get rid of the loopholes. look, i don't agree with everything in the president's budget. without cutting benefits. he has got a cuff road to hoe. there is no seriousness there at all. >> yeah, but, look.

get limiting deductions to 28%. the kind of pro growth tax reform to get this economy jumping. this amounts to nothing more than a huge tax hike. there is no tax reform here. it undermines all of the president's promises. >> i'm sure that was a question so i'm going to say yes, you're right. the president talks about tax reform and he is right when he talks about the importance of the benefits to the economy. he has once again come out with a buffet rule.

everywhere he turns he complicates the tax system. the latter might be true, but not go after these low dollar unimportant tax breaks. we need that leadership. >> this is my disagreement and has been for four or five years. the president will say things once in a while that might sound okay but he doesn't believe it because it's not in the budget. we are spending more and taxing more. the good news is it won't pass but if it did it would damage this economy. >> corporate tax reform goes from something that the president would hope to raise revenue on and in this proposal is revenue neutral. >> he is raising -- >> so poorly in our economy. >> one of the greatest taxpayers

in all aspects. energy is sustaining this economy even though obama hates fossil feel energy. they have a tax on banks which we need to make loans and energy which we need to sustain growth. i don't get that. >> we should rewind the first segme segment. >> the budget, this budget is about finding a coalition of the willing. if they will give in on more revenue. if they will move the process forward. house republicans to have to sit down and do something. >> if i could? >> i want to get roger. on top of all of this, the administration, i just love this. they want to confiscate retirement accounts. that's a big pot of money and

revenues. they are saying you know what? if you have a couple hundred thousand in retirement income, that's enough. we're not going to let you get any more. >> doubling the cigarette tax. it's not a trillion dollars in spends cuts when you examine it over ten years. it's the same thing. >> huh ward dean, the so-called chain cpi, i don't know what you think of it. it may have made some sense in a technical way. it reduces benefits. >> let me take on the idea of taxing job creators.

the idea that we're taxing job creators. we have fair tribute for all the damage in the last four years with the crooked derivative behavior. bailed them all out. i think they ought to pay their fair share. >> what does that have to do to make an economy better? bha does that have to do with getting people back in the labor force? you can't just keep blaming the banks. you have got to go forward. this budget has high taxes and high spending. it's the reverse of thatcherism. >> this is really simple on two fronts. on policy it is not a program

policy to sail straight towards an enormous debt explosion. how does that raise growth? it doesn't. the driving force is the entitlement spending program. the thing that i don't understand is that we saw what a coalition looked like. it looks like entitlement reform. let me finish. and what bothers me about the budget as this kind of an approach is it doesn't have that architecture. and there is no real entitlement reform. >> more than 2 trillion dollars? >> you guys, we can't have more

revenue. >> we can if -- >> and you grow the economy -- listen. here is what you don't understand. plus the deficit falls by 3 trillion dollars. why don't you go for broke? you're taxing the producers and innovators. we can put our fiscal house in order. doug talks about the coalition of the willing. >> i get the last word. i was right. >> all right. >> this is the last word? >> sect last word? ronald reagan.

anyway, governor howard dean, thank you very much now. here is something from team obama that i do support. they really had a cool star studded concert at the white house last night. i watched them streaming live. that story and much more coming up on "kudlow." flying is old hat for business travelers. the act of soaring across an ocean in a three-hundred-ton rocket doesn't raise as much as an eyebrow for these veterans of the sky. however, seeing this little beauty over international waters is enough to bring a traveler to tears. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving.

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>> the ceos of the biggest banks of america going to the white house tomorrow. >> good evening. the biggest names on wall street will be there. jamie diamond, lloyd blank and bank of america's brian moyni n moynihan. this time, it's the first time that the president is going going to attend. the postal service will keep delivering on saturday as it wanted to drop one day from its

schedule to save money saying congress won't allow it to cut a day. and the first family enjoyed a concert at the white house last night. it was a night of memphis soul, featuring artists like ben harper and justin timberlake who performed sitting on the dock of the bay. the concert will be aired on pbs a week from tonight. >> i know some people are nitpicking the sequester. i love the little happy moment. it was very nice. the first couple loved it. the musicians loved it. they can have fun, can't they? >> next up, mark zuckerburg is going to make his mark in washington d.c. he is close to launching a new high powered lobbying group. we will have that developing story next up on "the kudlow

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i know what you're looking for. i'm not chained to your desk anymore. i'm faster and smarter now. and so much less expensive. i am your market data. and if i do say so myself, i have never looked better. superderivatives introduces dgx. data done differently. history once again. the tech giant is set to launch a political lobbying group. the new organization allegedly will push for immigration reform. julia joins us now with the details. >> that's right. now it's not a super pac but it will be a non-profit advocacy

organize which we expect to have broad support from the tech community from both sides of the aisle. sources tell me the goal in this organization is to build support from a grass root level within the tech community. the organization will be focused on the desire to keep america competitive. so the first area of interest is comprehensive immigration reform. after they got to know each other when zuckerberg donated $100 million to newark's public

schools. back over to you. >> appreciate it. let's bring back our political strategist. roger stone, is mark zuckerburg a closet republican? >> what political consultant dreamed this up. if facebook wants to be active on internet or communication issues it's a good idea but this is -- this was a consultant's idea. >> it's immigration for brain yaks is a big idea. you're nodding. you don't agree? >> we need to create better and more engineers in this country. we educate them here and ask

them to go back let eslet them stay here. >> the other side is he is being criticized by some people who say he's going to bring attention to rich people like himself. a lot of people worry that he is going to do more harm than good. >> it's like hollywood. i think he would be more effective in other issues. >> what if this guy, let's take the chris christie thing. the original thing was zuckerburg donated a fort chun to a school system. team obama is for the teacher's union and opposes school choice. he could do a lot of good for the school choice issue. >> if he's interested in running for public office my phone number is -- >> are you going to work for him? >> i will say i think it's a

good thing. making sure that we are creating not just the jobs but preparing our kids to have them is an enormous thing. >> i am quite certain that he is a closet supply side free market republican. roger gibbs thank you very much. that's it for tonight's show. i'm larry kudlow. free market supply side. we'll see you tomorrow. by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. but i wondered what a i tcustomer thought? is great, hi nia... nice to meet you nia, i'm mike. what do you drive?

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