turkey raises the rates dramatically, you'll -- people will make you feel that turkey is our country in the next 24 hours. it's a spin cycle, people. i have traded right thousand turkey going to turry. we still we're two hours away from a state of the union address, where it's expected that president obama will emphasize income inequality, push for minimum wage hikes and jobless benefit extensions and more infrastructure spending. but my view, it's all wrong. none of this is going to spur growth like corporate tax reform, more energy fracking and approving the keystone pipeline. that's what will create lasting jobs. a rising tide lifts all boats, mr. president. >> and speaking of rising, stocks rebounded today and it

would have done better had it not been for apple shares. i save stay away from emerging market, stay away from bonds. but stick around because "the kudlow report" live from washington, d.c. beginning right now. good evening, everyone. i'm larry kudlow. this is a very special edition of "the kudlow report." we are live here in our nation's capital, 7 p.m. eastern, 4 p.m. pacific. we are focused on the state of the union this evening. just briefly i want to begin with stocks because we had a nice bounce back today and it would have been bigger were it not for the trouble of apple. we bring in josh lipton who joins us live from silicon valley. what you got? good evening. >> larry, stocks rising today with the dow rebounding after a five-session rout.

investors reacting to better than expected earnings. ford rising after posting a higher than expected profit and d.r. horton rising after sales picked up in january. 69% of companies have reported earnings. the dow tacked on 90, the s&p added 11 and the nasdaq climbed 14. one note of a lagger in the session, you mentioned, larry, apple. the big news there, disappointing iphone unit stalls. it sold 54 million units, sounds good but not good enough for analysts. they expected 55 million. tim cook blamed the weakness in north american carriers. they changed eligibility from 20

months to 24 months. the price target was cut to 575 this morning saying a broader trend is at work here, coupling disappointment with am with weak unit from samsung and it looks like we're seeing increasing saturation in the high end of the market. analysts say apple has to push into new product category, whether it's a new products, new service or both. the company they say need news drivers of revenue growth looking ahead. larry, back to you. >> many thanks, josh lipton. we appreciate it. in just about two hours president obama will head to the u.s. capitkap tacapital -- capi deliver the state of the union to congress. one question have i is whether the president this evening will set the democratic party agenda and message. perhaps a sign of things to

come, pressurery secretary jack lew met with house democrats today only to reiterate the fact that the president will not negotiate when it comes to the debt limit period. let's talk. here now we welcome new york democratic congressman joe crowley, vice claire of the house democratic caucus and texas republican congressman kevin brady, chairman of the joint economic committee. mr. crowley, thank you for joining us. tell me a moment about jack lew. no negotiations on the debt ceiling. from what we heard, it's going to be a militant position and the debt ceiling may be a bigger problem than wall street first thought. >> and nor do i think there should be any negotiations on this. i agree with the secretary. we pay our debts. america pays its debts. it should not be used for political fodder, whether it be on the health care bill or anything else. we need to move beyond this and stop to continue to creating these man-made fiscal crises, this one pertaining to our

national debt. >> kevin brady, down through the years we've had a lot of fiscal change and reform attached to the debt ceiling bill. why do you suppose president obama is taking this hardline view right at the top of the new session of congress? >> i think this is more the i'm going to go it alone approach, and he is no teddy roosevelt in this area. the truth of the matter is joe's right, we are going to pay our debts, we're going to pay it in full and on time. but investors looking at the country are really wondering will the white house, will congress actually address the biggest issues, social security, medicare, our long-term size of the government. that's what's missing. this is a perfect opportunity to have that discussion in a bipartisan way and we're ready to have it. >> but will the republicans at the end of the day in order to avoid a government shutdown, a debt default, will they not accept a clean bill? >> you know, i don't think we will from the standpoint that, one, we recognize the affordable care act is the biggest budget

buster we got, a new entitlement with huge consequences, but this is also an opportunity, i think, to begin the work bipartisan to eventually shrink the size of government, put in place some guardrails around future spending. it won't be easy because the president is so obstinate in this area. but if we're smart, we'd work together. >> mr. crowley -- go ahead, sir, please. >> i think it's interesting, kevin's a good friend of mine, we work together on a lot of issues. but kevin on the one hand said we will pay our debts and at the same time he thinks we're heading toward a shutdown -- >> no, joe, we are friend, thank you for the work you do on ways and means. my point is we are going to pay our debts, there won't be any threat of default. but with the direction the country is going on debt and the size of government and our social security/medicare, big challenge is why miss this opportunity to take some positive steps? >> i don't question that there are those issues that we have to

deal with but i do think this debate we've had, even this discussion is unhealthy for the united states and it's unhealthy for the world. >> but is it unhealthy for state of the union address right at the beginning of the enough congressional session to be laying down markers that are really divisive? in other words, obama has two choices here, mr. crowley. he can say to congress i'll work with you -- we'll work with you on a number of areas or he can say i don't want any part of you. it seems like on this and his idea that he can use executive dictates and use regulatory functions and go around the house hees house, he is going to be very confrontational tonight right at the beginning of the session and his political standing eight ail that good, joe crowley. his polls are terrible. >> it looks as though he may go it alone. i don't think he can do it

alone. but he is looking for a partner. mr. boehner said earlier today they're not going to sit for. they have been sitting for this and doing nothing. we lack a vision here in the house of representatives. i think it's important for the president tonight to set the phone for a vision for america, not democrats, not republicans but for all of us. that's what i'm looking for tonight. >> kevin brady, joint economics committee, you're the jobs guy. it's a tepid economic recovery, it's one of the worst in the post-world war ii history, tepid jobs recovery, only 58% of americans are working, which is an extraordinary number. do you expect any real growth initiatives coming out of the president tonight? i don't mean minimum wage, i don't mean unemployment extension, i mean entrepreneurial incentive.

>> i don't think so. the truth of the matter is tax reform that lowers taxes and really gives us that jump start. infrastructure, private sector infrastructure, like the keystone pipeline, a thousand jobs waiting to go. but you ask small businesses what they want to hear from the president, it is get out of our way. you know, on taxes, on red tape and now the affordable care act, this is what's holding them back. so there is a simple answer. get washington out of the way. >> all right, we'll leave it there. thank you very much, gentlemen. representative joe crowley, i appreciate it. kevin brady, too. now, folks, we're going to continue our special state of the union preview with two top political analysts, former virginia governor jim gilmore and former congressman martin frost. they know a thing or two about politics and agendas. they'll join us next. please, don't forget free market capitalism is the best path to prosperity, but i wonder if i'm

going to hear any free market capitalism at all tonight. i'm kudlow. we'll be right back.

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welcome back to this special edition of "the kudlow report." weep are coming to you live from washington. here's a question -- will president obama this evening set the 2014 democratic mid term message or are democrats going to run away from his tepid economy and catastrophic obamacare? marty frost, let me just ask you straight up, is obama going to create a message that democrats will follow, i'm speaking specifically of senate democrats running in red states or states that mitt romney carried or are they going to walk away and go their own way? >> they're not going to walk away but the president is entitled to set his own agenda. i think members of the house and senate will say where they agree with the president and where they don't but the president is entitled to say what he wants congress to do. >> just to follow up -- >> i was chairman of the

democratic congressional campaign for four years. >> i recall that. that create as certain fissure in the party. and i'm not being deliberately cynical, okay. i'm saying i think that splits the party in many different ways. >> we don't have a parliamentary system where everybody stands up and absolute the prime minister. the vast majority will support the president's program. you can't expect the opposition party to go in lock step with everything the president asks. >> this comes at a moment when the president's approval rating is very low. the wall street journal went through a whole bunch of presidents and obama wasn't the worst. at this time baul p obama -- ob is at 43, papa bush was at 49%,

dwight eisenhower was at 60% and fdr at 58%. so obama is pretty much near the bottom of the heat. how much doubt does he have? are people going to listen? >> i hope in the state of the union address he will offer a program that will actually do something about growth now. if he would do something to reduce unemployment, get our young people jobs and an opportunity, then i think his numbers would improve. >> he said the minimum wage hike and extending unemployment are pro growth. do you disagree? >> i do disagree? that's why there's higher unemployment, hispanics and women are at higher numbers and so are poor people. >> the unemployment number can

go down to 7 and they still won't be happy. >> no, we'll be happy if a real program for growth is offered. everything has been anti-growth, everything from obamacare -- >> when i was chair of in 199 1996, -- it may not be the figure that the president asks for tonight but i bet the republicans will come around and ask for some increase in the minimum wage. >> i think it's small potatoes. the idea of minimum wage is so old, been there, done that. you need a jazzier message. you're going to lose all those young people you all have had the last couple of elections if you don't do something to put a

spark to this. >> i think you're going to hear other things from the president. the young people do want the minimum wage to go up. we have to offer hope for young people, make sure they can afford to go to college. i have three daughters, unfortunately, who are out of college. but i have grandchildren looking to go to college in the next couple of years and the cost of college is extraordinary right now. i think the president is going to speak to that and i think he should. >> do you think, jim, just to come back to your point, do you think the president will have anything brand new that we don't know about? in other words, we're all talking about inequality, we're all talking about minimum wage and unemployment insurance. is he going to come up with something new and different that will awaken people? because i think right now i agree with peggy noonan. i don't think people are listening to him. i think the ratings of this state of the union message are going to be low. that probably hurts me as much as anybody. to be honest, i think this is a

big nothing event. >> 40% of college graduates are either underemployed or not employed at all, not working up to capacity because of this awful economy. i'm hoping we'll see a solid, genuine effort at a real program for growth. but if he just says, gee, we want opportunity. everything that's gone on as been counter opportunity. we have a right as americans to know there's going to be a positive program from the chief executive that the republicans can rally to to increase jobs and opportunity. >> we've had a lot of job creation during the obama administration. not as much as you want, not as much as i want but we've had significant job creation. he has to build on that. >> that's not true. >> it is true. >> it's a weird story, though. i got to say, this. i hear you and i know political divisions will fight but when you actually look at the data, only 58% of americans are working. that is the lowest numbers we've had in, what 15 years.

the participation rate is so low. what it suggests, marty -- i'm not being critical, this is just statistical analysis. it suggests for every new job, somebody left the labor force. so you really have a push. somehow obama has to get out of that box, his economy has to get out of that books. i ju -- box. i don't know if inequality -- >> there has to be retraining. a lot of people have fallen out of the workforce. i know a lot of people who can't find the job they want and they need training. >> the clinton/gingrich economy was a good economy. and bill clinton was fundamentally an optimist, in my view. an optimist, okay? he might not be your favorite politician, jim gilmore, i understand that. i don't see barack obama spreading optimism. >> let's listen to what he has to say tonight.

give him a chance. >> fair enough, fair enough. >> optimism is not his agenda. his agenda has been some type of strange equality, redistribution of wealth, which automatically increases unemployment, destroys jobs. that's been the agenda. we have to change now. we have to do something where we can really spur the opportunity for growth. >> i fear personally, i'll just conclude on this point, i fear that we are accepting the fact that the economic pie can never grow larger, and we're stuck with the size we have. and i want to hear -- i don't care if it's a democrat or republican. i want to hear somebody that says i want to grow the pie larger. i want to -- >> i don't accept that. and a lot of democrats don't accept that. >> i'm glad to hear that. martin frost, jim gilmore, really appreciate it, gentlemen. >> now let's hear from joe

manc manchion. we'll be back. [ intercom ] drivers, to your marks.

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in order to tackle long-term job creation, why not talk about abolishing the corporate income tax, mr. president. just get rid of it. by the way, what are you going to do about the obamacare disaster? here we go to west virginia senator joe manchion and wisconsin senator ron johnson. good evening to both of you. i want to ask you, senator manchion, why not and when are we going to not just abolish the individual mandates. the cancellations, they still can't fix the web site. when does the individual mandate just go? >> myself and mark kirk says have a transition year, see if you can find and link up the product with the market and vice versa and take effect january 1, 2015. we've been asking that and asking that. they're missing dates.

the individual mandate is offensive to a lot of west virginians and a lot of americans. if we can't find the products to fit in the market or if the market won't allow the products in there, then you're going to make some drastic changes. >> i think the mandates are obnoxious. people want to make their own choice, they want to have their own economic freedom. i also think, senator johnson, we're heading for insurance bailouts. i think this risk corridor insurance bailut to cover insurance company losses, whether it's their fault or not is never going to happen. it's not going to come up tonight but do you think the president, who has made a million changes -- >> only 14 without legal authority. >> all right, only 14 without legal authority. >> i hate to embellish. >> the fact is do you think we're coming to the point where there's going to be a deal to get rid of the individual mandate? >> probably. because i don't see hough he can enforce it. this is so unworkable. of course i like joe's bill but

probably even better bills if you like your health plan you can keep it act, which would stem the next wave of cancellations. >> i like it, too. >> you ought to join me, mine will work. the next wave of cancellations will be employer-sponsored care. you'll have millions of americans dumped in the exchanges having to buy insurance with after-tax dollars. >> they are not going to like the products they get. the employer-based stuff is better than the public exchanges in many cases. >> and we are seeing on the exchange premiums double, triple, out of pocket maximums increase, people are losing access to the doctors and treatments have kept them alive. this is a disaster. >> this thing was moved, i wasn't here and ron wasn't here when it happened. but basically preexisting conditions was the driving force. a lot of the states had high-risk pools. so can we get back to certainly

more manageable. if you can't carry the load and the price gets too heavy, they're going to have to make adjustments. >> preserve freedom in health care, which will eliminate the mandates, equalize the tax treatment and we can go a long way toward -- >> let the individual and the family have the tax break, not just the business. that is really key. i got to move on. i got to move on. i want to get on to this business of inequality, which we apparently hear a lot of. i've already seen some of the clips of the president's speech, there it is right in there. of course inequality has worsened under his watch. but i don't care about inequality. what i care about is growth. i want a rising tide to lift all boats. i mean this. bill gates, okay, bill gates, steve jobs, zuckerberg, mark zuckerberg, great entrepreneurs, they created thousands and thousands of new millionaires,

and those new millionaires in turn reinvested that money to create bases and get middle class jobs going. why do i care about inequality? i want to create as much wealth in this country as possible. i think the president is barking up the wrong tree. >> as a chief executive, which i was governor of the state of west virginia, when i first got elected, larry, they said you have to raise taxes, we need revenue. i said why don't you let me run this place for a year and see if i can do any better. not only did we not raise taxes, we lowered taxes, we had to fix broken worker's comp, insurance reform. once we took off, we never looked back. we had reserve, we had surpluses, we built a rainy day account. when of everything was falling off, we were still here. i know if you build confidence -- i would say, mr. president, if you were looking back would you do it over and accept the bowles-simpson

approach, three-prong approach to fixing our financial challenges that we have? >> i will tell you, this inequality thing drives me crazy because it's not about growth, it's about distribution. equality of opportunity, you believe in that. equality of results, do you believe in that? how can anybody say -- take this kid zuckerberg from facebook, he created from his own staff thousands of millionaires. where did that money go? they rechannelled it. why doesn't president obama get that and why are we playing any corporate tax at all? >> equal results? the only equality is everybody has zero. the goal should be expanded opportunity, growing prosperity for everybody. that should be the real goal. joe mentioned bowls-simpson. we've largely enacted bowls-siem

s -- bowles-simpson. it's barely made a dent in our long-term deficit. it was a good first step but we've got a lot more to do. we've got to grow the economy. >> academic studies show you get rid of the corporate tax, the models show that the people who benefit the most the are the middle income wage earners and workers because companies just pass that tax along, they lower your wages to cover it and raise your consumer prices. i'm saying i want more zuckerberg, i want more gates, i want more millionaires because they're job creators. >> let's say it came down from 35 to 25 and people that are getting condemned for not paying

anything, going offshore, bring them back. at 25 you say i'm going to give the top end of the food change another 10%. i'm telling you, if people ork together -- >> repatriate the form, which the president is against. >> we'll again fit from those jobs, we'll help you. >> senator, i have to go. thank you, you guys are great. now, folks, what should policies be for president obama tonight? i'm a growth guy, not a redistribution guy. as i said, i want a rising tide that lifts all boats. i don't want to penalize success. we're going to keep this debate going. next we have governor howard dean and aei's jim pethokoukis. please stay with us. [ male announcer ] the new new york is open. open to innovation. open to ambition.

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welcome back to this special edition of "the kudlow report." let's talk about what the senators said, an individual mandate and abolishing the corporate tax rate and creating thousands and thousands of new millionaires, one of my favorite topics. we have former dnc chairman howard dean and jim pethokoukis of the american enterprise institute. i can't tell you how bored i am with the discussion of income

inequality and we can't grow the pie larger. we forget out of nowhere, right, the founder of microsoft, the founder of facebook, the founder of apple, these great entrepreneurs created tens of thousands of millionaires that went out there and themselves started businesses and hired people. why can't mr. obama get that model? >> well, in all fairness, the founder of microsoft was a guy who left harvard because he discovered -- >> okay. >> so he was at harvard to begin with. >> that's okay. >> you know the stats. in the last 20 years so we're not blaming a particular president, the last 20 years the lower 80% of the american public has not seen a raise if you adjust for inflation. almost all of economic benefits are going to the top 20%. you can argue morality. that's not my argument. the country is a special country because of the american dream. people believe if they work hard, they can do well.

>> and you don't think that's true? >> it's less true than it was. >> you can be up at the top one year and down at the bottom another. do you agree? >> i don't know what he's talking about. income inequality has increased at the high end but inequality of wealth hasn't increased at all because people make fortunes and lose fortunes. and what does it actually hurt? it has had no impact on economic growth, on upward mobility, on jobs. we haven't had enough economic growth or jobs being created. why are we talking about cutting taxes or the pipeline or going through the regulatory code? >> i appeal to you, you were a fiscal conservative when you were governor -- >> still am. >> and you actually say some sensible things about obama.

>> once in a while. >> stuff that jim p. is talking about here, why do i care about inequality if the standard of living and weather is rising for the country? i want more gateses, more zuckerbergs to create tens of thousands of millionaires. that's the american dream. >> that's all fine and good butt bottom 20% of the country have a 10% chance of getting out of the bottom 20%. >> i thought there was a huge study last week by rock star, superstar economists that said mobility today is no different than it was in 1971? >> i think if you're at the bottom, it may be tougher today.

but stuff i've read and i'm not an expert. that's about family breakup, that's about single mothers, that's about kids who don't go to school. that's a social issue, not an economic issue. >> i think mobility should be better and the correlation between income inequality, there isn't any. >> where would howard dean go on this? >> i do think we need a strong social safety net. i think increasing the minimum wage significantly matters a lot. these guys are making -- the minute people or minimum wage adjusted for inflation, the minimum wage today would be in the neighborhood of $15. >> that's not true. it's just where it was for the entire 1960s to 1970s. >> give me point number two. >> so the social safety net. second, you got to do something about education.

you absolutely have to do something about education. it is a huge problem, especially in the inner cities. >> but not spending just more money on it? >> i actually think that's right. it's not a matter of more money. it's a matter of changing the output from schools. i happen to be a charter school. i'm not a for-profit charter school guy and not a voucher guy -- >> i'm going to make you a reagan guy before this is done. >> i'm not a reagan guy. >> you're on the right road now. >> you have to have a decent safety net. >> i'm all for safety net. >> and if you want to balance the budget. >> you're willing to provide wage subsidies if necessary money. >> absolutely. >> i don't know why we're talking minimum wage. let's talk about the better policy options, which is wage subsidies. if we're only growing on average 1% a year, which is always we've grown since 2000, that's going to be harder. i don't know why he's not

talking growth, growth, growth, instead of redistribute, redistribute, redistribute. >> you need to do both. we need to bring almost a trillion dollars back from abroad here. i don't mind a corporate tax rate that's more reasonable. but i'm for revenue neutrality. >> our tax code is so out of whack. could you cut that thing right now to 25, 20% that, would pay for itself. maybe not down to zero but you take it to the oecd average, you're not going to lose much if at all. >> i'm not a big fan of cutting taxes and supply-side economics, as you know. >> i've seen so much movement in governor howard dean in the time i've known him. >> since on the show. >> ten years. i actually listen to what he says. >> i'm still for same-sex marriage. that will turn you off. >> i see a dean-romney ticket out there somewhere. >> thank you very much. you know i'm right. you're moving more conservatively. now, we finally had an update

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a green day on wall street. stocks popped on better than expected earnings and economic reports. what's ahead for the markets? that brings up an interesting question. will president obama's state of the union speech tonight help or hurt the market environment? here now to tell us all we'll ever need to know is jack bouroudjian. an honest answer, jack. do you care what happens in the state of the union message? does the stock market care? does anybody care? >> larry, tonight officially the president becomes a lame duck. and it's not only because we know that what he's going to say is going to be a bit antagonistic to knows that believe that growth is probably the panacea here, but you're hearing people like the howard deans of the world and that is his own party that are starting to say wait a second, this hasn't worked. the last few years have not

worked. look, we were around in the 80s. we saw what happened when you freed up seed capital and you were talking about the bill gates of the world and all the rest of this. all of that happened right in our lifetimes. we saw it happen. so we know what happens when you let corps spend their own money, when you repatriate cash back, which the second president bush did. all of that creates jobs. >> which, unfortunately, i mean, i don't know the speech, marty frost said i should wait and hear the speech and he's right. but from the excerpts i've seen and leaks out of the white house, jack, it's not going to be the kind of pro-entrepreneurial, pro-growth speech you're talking about. let's get back to basics here. pretty good numbers today but not uniformly. kay shiller home prices very nice, 14% created year-on-year. consumer confidence up surprisingly. but here's the one that bothers me, jack.

core capex, business investment, that is the most mediocre trend for any recovery. you can't create jobs and vitality if businesses don't make investments. this number bothered me. >> it bothered me, too. i think we're going to have to look at a couple numbers and have this conversation in a couple of months or so. a lot of order books, it seems like a lot of these orders were deferred to this year. a lot of the numbers that we're looking at have a bit of latency attached to them. let's see how the next couple of months play out. i agree. it's one of the reasons we're starting to see the market correct a little bit. it's a bull market and the market's come a long way in a short time. >> that's an important time. no one knows this precisely.

is this something like a 5% correction, jack, or is it going to be a larger correction? >> we continue to buy 5% corrections until we are wrong. every time the markets pull back 5%, it's been a buying opportunity. i don't see this being any different. if anything, we're looking at top line revenue growth earnings. we're expecting earnings to be up 9.5% year over year. that is a very valid and bullish reason to own stocks. so when you're looking at what is coming out right now, i think we have to take a step back and understand that last year's appreciation in stock prices were the precursor, i guess, to what this year is and that is where earnings really start to show up. >> all right. can i implore you to come out and say to investors stay away from emerging markets? it's not about the u.s., it's most of these countries. i want to read this real fast. inflation, a lot of them have now started spending and printing money and inflation. brazil inflation 6%, argentina inflation 25%, india inflation,

11.5%, russian inflation 6.5, turkish inflation 7.5 and it's probably worse than that, indonesia, 8.5%. they're doing it again, doing it to themselves, self-destructing. that's i didn't want people to stay out of emerging markets. what is your take? >> you're right for the short term. i say stay out of the emerging markets for the next six to 12 month, maybe a year and a half. if you look out five or ten years and you talk logically, that is where the growth is. so look for value as those markets pull back. >> all right, if they stay on the capitalist, hard money course. jack bouroudjian, thank you very much. we're just about an hour before cnbc's live broadcast of the state of the union address. we have one more preview coming up with democratic senator chris koons of delaware. we're live here in washington. mr. koons up next.

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welcome back to this special edition of "the kudlow report," coming to you live tonight from our nation's capital in advance of president obama's state of the union address. now, we're joined by delaware democratic senator and budget committee member senator chris koons. mr. koons, welcome back to the show. happy new year, sir. we thank you very much. let me just ask, i don't think i've asked this question once tonight talking about state of the union.

what do you want to hear from president obama, okay? if you could put a one-page memo together, what do you want to hear him say tonight? >> well, larry, i think the president needs to speak directly to the american people and to congress and tell us one simple thing, that he's going to continue to fight for american manufacturing, that we're going to incest in american workers, whether they're employed or not and that we're going to work together in congress with the executive to find solutions that will help grow the middle class. i expect we're going to hear a lot about income inequality tonight. i don't think it's enough to pound the table and denounce those who have done well in our stile and while important, i don't think it's sufficient to raise the minimum wage or extend unemployment. we need a pro-growth man, investing in infrastructure, strengthening the capex

numbers -- >> how about energy? add energy to that. i love your message. bipartisan, pro-growth policies. i love your message. manufacturing would be great. why don't we throw in energy? it drives me crazy, senator coons, i know it's a hornet's nest, there's the keystone pipeline. there it is. just say yes, just say yes! he'd get tremendous support from everybody. >> one of the reasons we've got a bright future is the dramatic expansion of natural gas f supplies for the country. that's a real moment of opportunity for us. this has an impact both on our international standing in terms of our ability to strengthen our allies and domestic ability in terms of our act to attract back to the united states manufacturing jobs. i think if the president laid

out a simple clear agenda on skills, access to capital, access to exports and access to energy, we could build on the manufacturing jobs and double those going ahead. >> one thing interesting to me, senator, you used this term several times, bipartisan. i know you're someone who will go across the aisle and talk with someone on the republican side. here's what troubles me. here's president obama, he's got terrible polling numbers. point number two, he's talking a lot about executive power, taking unilateral actions going around congress. he's p he sent his treasury secretary up to the house democratic conference to say there will be no negotiations on the debt ceiling whatsoever. senator coons, none of this sounds like he's reaching out to republicans. none of this has even the pa

tiee teen yaf of bipartisan. >> i'm hoping he will reach out his and and say here what's we can do together to advance further wages. if he says here's what i'm going to do for infrastructure by way of executive action -- we actually got a bipartisan budget deal done. we actually got -- and i serve on the appropriations committee as well the budget committee, we put together and got enacted a bipartisan appropriations plan. i understand the conferees on the farm bill are about to deliver to the house and senate for the first time in five years a bipartisan farm bill that cuts spending, invests in growth and lays the five-year authorization foundation for growth in our agriculture sector.

i really hope he's going to build on that tonight. >> under the circumstances, i agree with you. it's just that -- what you just said. i got to wait until the speech, i got to hear the whole speech. it just doesn't sound the last 48, 72 hours, he wants bipartisan leadership. the country wants some problems solved. no one is going to get everything they want. the question is will president obama provide that kind of leadership? will we hear it? will he actually say that in tonight's state of the union? >> well, i'm optimistic. i think it's way too early to give up on congress this year and turn to the 2014 campaigns. what i hear from my home state of delaware, up and down the state from democrats and republicans, is they want to us listen to each other, they want us to compromise and work together. i think frankly there's nothing we could do to strengthen our markets more than to demonstrate

an ability to solve common problems in a bipartisan way. >> we'll leave it there. thank you, sir. we appreciate it. "shark tank" is next on cnbc. at 9:00 p.m., tune in for special state of the union presentation, carl quintanilla and kelly evans. i'm larry kudlow, thanks for watching.

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