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What the market wants to hear from Trump


Investors want to hear clarity from President Donald Trump when he makes his first speech to a joint session of Congress on Tuesday night, market experts told CNBC.

"If President Trump is verbose and blustery and all the nonsense he pulled during the campaign, that's not going to sit well with investors," Empire Executions President Peter Costa said in an interview with "Closing Bell" ahead of the speech on Tuesday.

"There has to be some clarity from his point and from his view for investors to feel comfortable that these tax reforms are going to happen."

Equities have rallied since Trump's victory as investors pinned their hopes on promises of tax cuts, deregulation and infrastructure spending. However, the president has yet to release specifics about his plans.

On Tuesday, the U.S. stock market closed lower ahead of the speech, with the Dow Jones industrial average snapping a 12-day win streak.

Doug Sandler, chief equity strategist at RiverFront Investment Group, wants to see plausibility, not platitudes.

He also wants to see that Trump is willing to work with members of Congress.

"There's a big agenda to get done through Congress and I think bridge building is necessary," he told "Closing Bell."

"You either have one or the other — you have specifics or you have 'let's put a bridge out so we can work together on this.' I don't think we can have neither."

And even though Republicans control Congress, there are now disagreements within the GOP that could threaten his legislative agenda.

For instance, Trump's push to increase the military budget at the expense of other programs is hitting resistance in his own party. Trump's proposal calls for slashing 37 percent of the State Department and the U.S. Agency for International Development budgets, according to the Associated Press.

Sen. Lindsey Graham, R-South Carolina, told NBC News that budget would be "dead on arrival."

"What Trump really needs to do tonight is outline his broad vision and try and get those Republicans on board so that he can start healing those divisions and get that stalled agenda moving forward," said Dan Clifton, head of policy research at Strategas Research Partners.

Michael Cuggino, portfolio manager at Permanent Portfolio Funds, hopes the speech will be forward looking, and notes that at some point there has to be accountability.

"There is a timeline and a window here to get things done — 12 to 18 months and you've got midterms," he said. "You need time for these policies to take effect and impact the economy, otherwise people are going to get restless," he said.

— CNBC's John Harwood contributed to this report.