Space shuttle Endeavor REUTERS/Scott Audette Obama will unveil a new "grand bargain" in which he will propose a combination of tax reform and new infrastructure spending.

According to Reuters, the gist is this:

The corporate tax rate would be lowered.

There will be a boost in infrastructure spending.

There will be some revenue raised from taxes on foreign earnings and crackdown on tax holidays. That revenue will be used for the infrastructure spending.

In a note to clients, Dave Lutz of Stifel, Nicolaus writes: "Today’s speech in Chattanooga from President Obama may spark the bulls."

Most likely one speech isn't going to do too much, and you have to assign pretty low odds on anything getting passed.

But if there were any prospects of something like this passing, you have to imagine that investors would go crazy for it. Lower corporate tax rates, plus another jolt of stimulus spending would be crack for the market.