After experiencing the biggest losses in two years, the major indices have come roaring back again with the Dow up over 500 points to 24,725 or about 2.2%, and the Nasdaq and S&P500 both up over 1.8%.  Advancers are firmly outpacing decliners 2121/812 on the NYSE and 1535/9879 on the Nasdaq.   Energy, Industrials, Materials and Technology are among the leaders while Real Estate, Telecom and Utilities lag. 

President Trump unveiled his proposed 2019 budget, which propelled stocks higher, that includes additional spending for border security, military and to help tackle the opioid crisis.  In addition, the administration unveiled the long-anticipated infrastructure bill.  Some of the key components of both include:

•  $716 billion for defense
•  $18 billion over two years for a wall along the southern border with Mexico
•  25% increase from 2017 budget to hire 750 additional Border Patrol agents, 52,000 more detention beds and 2000 more ICE officers
•  $17 billion to fight opioid addiction
•  $200 billion for infrastructure over the next ten years, intended to generate $1.5 trillion in spending by state and local governments as well as private entities

o   $100 billion for states and municipalities in matching funds for infrastructure projects  

o   Federal funds will pay up to 20% of a project

o   $50 billion for rural infrastructure projects

o   $20 billion for financing risker cutting edge projects

o   Additional $20 billion for public-private partnerships

o   Overhaul the federal permitting process to shorten the approval process to two years or less

The budget assumes economic growth of 3% this year and 3.2% next year.  However, it appears to increase the deficit to 4.25% of GDP this year, and 4.7% next year.  There will need to be spending cuts and Medicare, Medicaid, and student loans could be on the chopping block.  There is a long way to go before the budget becomes reality, not to mention that an actual two-year budget was just signed last week.