on pretty nice gains. >> if you bought last year, great, because they keep on going up that was the third straight record jump in the home price index. a lot of people are saying those prices will have to cool because we're seeing sales drop off. yesterday we saw the pending home index fall and that's a measure of signed contracts. so prices usually lag sales, and sales are slowing. >> that does it for "the exchange" everybody, but "power lunch" begins right now. kelly, thank you very much and welcome, everybody, to "power lunch." here's what's ahead on a busy tuesday. we have bargain hunting with major averages near new highs. it's not easy to find inexpensive stocks but our guest has a list of value names that could power your portfolio. plus crypto derivatives expands into futures and options trading. the president will discuss its

acquisition of ledger x and what comes next. and whoop, there it is a new funding round makes whoop the most valuable stand-alone fitness wearable startup investors include durant, patrick mahomes, eli manning we'll talk to the ceo about the firm's fast growth whoop, there it is, kelly. >> boom shaka locka. let's check on the markets midday the dow is tipping further into negative further, down 22, the nasdaq is down 3 but the s&p 500 is a little in the green at the moment 15,266 shares of the chinese gaming firm netease says less than 1% of its revenue comes from minors netease shares up 7% and that's helping lift the kraneshares up nearly 4%. there's enthusiasm around media

stocks comcast, our parent company, viacom and disney also getting a lift today the s&p looking to wrap up its seventh positive month in a row, but september is historically a rough month for the market is it time to ignore those opened seasonal trading rules? bob pisani is looking at the rules for us. >> hello, kelly. we're going into september and september is full of all sorts of trader mythology as is october. september is the worst trading month of the year, and it's true, but not that bad so just take a look. august and september are two of the three worst trading months of the year. it's down fractionally this goes back all the way to 1945 as an average but here's the good news these kinds of old seasonal trading saws haven't worked that well september has been up three of the last four years so there's a lot of these like sell in may,

go away. santa claus rally, best six months of the year trade, a lot of them aren't working as well some believe this is because of the federal reserve pumping oceans of liquidity into the market that has disrupted these seasonal trading patterns we used to have this is just about as good as it gets it's not hard to figure out why the markets are at new highs the three things that matter most to traders, earnings, profit margins and interest rates all are aligned favorably. take a look at the earnings situation here, record earnings. not only earnings that are record but the estimates keep rising the trend is in the right direction. profit margin is 13% on the s&p 500. and finally interest rates are staying low and the federal reserve has clearly indicated they're doing their best to avoid a taper tantrum. still, there's some warning signs. i want to point out what's going on in the second quarter so far. the s&p 500 is up 5% for the

quarter, but the five biggest names, and you know what they are, they're up about 10%. they're twice as much. a surprising number of stocks in the s&p, they're not up at all almost 40% of the s&p is not up in the second quarter. what does it all mean? it means that the rally is getting very, very selective now, we talk about selective rallies, you know what we're talking about. the top five names in the s&p 500, roughly 25% of the whole value of the s&p 500 10% gains, take a look so far in the second quarter, most of them are up about 10%. there's alphabet, microsoft, apple, facebook and amazon the only one there flat is amazon when you get these kinds of moves up, kelly, of course it's going to push the s&p 500, but traders prefer broader rallies, more breadth as signs of health of the right now we're not getting it kelly, back to you. >> i'll pick it up bob, very interesting oervsbservation thee so how does an investor find

value. let's go value hunting with surat seti a cnbc contributor surat, thanks for joining us at 2:00 it's a rare pleasure we're glad to have you >> i'm very glad to be on, thank you, tyler. >> so bob just talked about the narrowness -- well, 40% of the s&p 500 is not up for the quarter and the rally has been driven by a few very expensive names. there are value stocks that are value stocks for a reason. how do i separate the wheat from the chaff? >> the stocks that are rallying have earnings growth when you look at the value sector, a couple of the metrics you want to look at is what are they trading at in terms of multiples. what i look for are what are the catalysts? what are the things that are going to drive earnings for the next couple of years, if not more those are the stocks that i want

to own so companies -- not just because they're cheap on a pe or ebitda basis but are they catalysts and things that will grow margins and revenue. >> and what is your catalyst for your first pick, which is cvs? >> so c svs is an interesting story. trades at ten times earnings they have had a rough go of it they are a little overlevered. so the goal for them is to pay down debt. the margins are going to improve. they have the front of the store with cvs and the aetna piece which trades like united health. so we've got a company that's trading at ten times earnings, their comps are at 20 when we look at united health and the catalyst are earnings growth going forward as the companies have combined and value-based health care is really increasing so earnings growing, high single digits, double digits in '22 even if you don't get multiple expansion, which we'd expect

this stock can grow and you have a dividend yield of a little over 2%. >> i sit there and i look at cvs and i think is it a retail company or is it a health care company? and i can almost see the investment bankers three, four, five years from now. the wheels are going to start to turn and they're going to come out and say, wait a minute, if you just got rid of that retail with the cosmetics and the milk and the cookies, you'd have a really much higher multiple. am i all wet or what, sarat? >> well, i think what you're looking at is the intrinsic value of the company so if things don't go as well as planned, the sum of the parts is greater than the whole at the same time, what is the company doing, paying down debt. they're doing the reverse lbo on themselves so when you look at what is my downside on this stock, it's pretty limited because they have great cash flow and the sum of the parts is worth a lot more than the two of them together.

if they do perform and get that high single digit, double digit growth, you get multiple expansion on a market that's already trading on 20 times. so you get a stock that's ten. it's aself-help cyclical growt story. >> i don't want to call it boring old morgan stanley, but i'm curious about why you would recommend the stock. number one interest rates, such a headwind for a lot of these financials the stocks never trade that way. fintech. the more and more that people stock as stock trading, you know they'll wanting to go upstream to asset and wealth management >> if you look at morgan st stanley, 60% of their business is wealth management their credit profile is very minimal. they don't really lend money out. they're not using their balance

sheets like the bank of america and jpmorgan, yet this company is trading at 14 times earnings. they just increased their dividend, doubled it to 2.7% yield. they have excess capital they're going to buy back $12 billion of share and really they're looking at earnings growth from the wealth management business, and the m & a business which is asset light. so interest rates could go up and that would be helpful but they don't have to go up for this company to earn its way into double digits earning so those factors, yeah, you get some tailwind with interest rates, but the rest of the business that the management team has done i think separates itself from the rest of the pack and they haven't gotten the multiple credit yet. either you get the multiple credit and the earnings growth or you get both. this is a company that will increase its dividends too growth, value, both of these on a cheap stock. >> and let's finish with lanco

quick phrase or two. >> zoetis trades at a 30% multiple expansion self-help story here, pay down debt they can increase their margins from 20% to 30%. this is a secular growth story if you look at the money people spend on their pets and farm animals and diagnostics, this is an area where this company can really separate itself from the rest and grow where the market is fairly valued in an area we think they can really do well. >> always great to see you, sir. thanks for coming out at 2:00. >> thank you thank you for having me. >> you got it. now to louisiana and the aftermath of hurricane ida the region's power grid still offline, leaving new orleans in the dark our frank holland is on the ground covering the story for us frank, what's the latest >> reporter: kelly, the entire city of new orleans still without any power or air conditioning for another day about 1 million people in this area in that same position as the temperatures reach about 90

degrees today, high humidity as well right now we're at an event sponsored by a city councilperson offering food, water and even tarps over here you can see some of the people that got here on foot to get this help over here, all the people that drove here to get this help. this line of cars literally goes around the block hundreds of cars filled with people desperately searching for any help that they can findi other people are searching for gasoline earlier today we were at one of the few stations in the city in operation. there, very muchthe same story long lines of anxious people looking to get just enough gas in their tank to get out of this area >> down here it's not safe we don't have food or lights. >> makes no sense to stay, you know it's a lot of people can't afford to leave but thank god we can, so we're getting out of here, man. you know what i'm saying it's going to take them too long to get us power. our water, we're on the west

bank, our water is garbage. >> reporter: you can see here the power outages are really centered right around the city of new orleans, really concentrated it's also making it more difficult to find gas. the number of stations reporting gas outages is climbing. another major issue is water or clean water at least three nearby areas, what they call parishes, have issued a boil water advisory. about half a million people impacted by that a lot of people don't have air, they don't have power. they're struggling to get water. they just want to get out of here tyler and kelly, back over to you. >> frank, another question we've been asking the last couple of days are the hospitals again, the interesting and important point has been made about what kind of backup power sources people have in this part of louisiana when so much of everything they do is powered by electricity and it goes down. >> reporter: absolutely. what in this world isn't powered by electricity

we've been in contact with the largest hospital system in the area they're probably going to hold a briefing later today to update people on the situation with the power and covid cases. over 2,700 people are in the hospital with covid-19 the state right now on its fourth wave of covid-19. >> such a scary combination. frank, thank you very much our frank holland down south for us coming up on "power lunch," the president of ftxus on his company's new deal to push further into the crypto derivatives market and whether it's a step toward regulating all crypto trading in the u.s. plus alphabet's market cap closes in on $2 trillion its 2021 performance leaving other mega cap tech stocks in the dust we'll ask a top analyst about the stock's next move when we return keep it where it is. lks the wort fully autonomous vehicle is almost at the finish line today we're going to fine tune the dynamic braking system whoo, what a ride!

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shifting gears to the world of cryptocurrencies as we so often do, ftxus has agreed to buy the derivative exchange ledger x for an undisclosed amounting. it will allow ftx.us the ability to trade crypto options and futures under regulation from the cftc could this be the first step toward regulating all crypto trading here in the u.s. joining us now is ftx.us

president brett harrison let me start with that question. could this be the first step toward regulating cryptocurrencies i'm not sure why we should infer from this that that would be the case. >> thank you for having me on the show. >> of course. >> already in the u.s. there's already a regime for regulated derivatives under the cftc and crypto derivatives included in that us entering in this space is no different from the existing regime. >> does it lead then -- could it lead then to more regulation of the trading of cryptocurrencies themselves as opposed to the regulated trading of derivatives of cryptocurrency i guess is really cutting to the number of the question there. >> sure. so it's an interesting question

abouthow will spot cryptocurrencies be regulated in the future right now there is no existing regime specifically for spot cryptocurrencies there's no similar framework for regulating crypto exchanges the way there are for equities exchanges or options exchanges so it will be interesting to see where we head in the future with the s.e.c., the cftc some split jurisdiction between them in terms of coming up with an actual framework for cryptocurrencies and how that might relate to the existing derivatives regimes, things like crypto futures. >> so i was surprised to learn, maybe i shouldn't be, maybe it's my innocence and naivete, that the vast volume of cryptocurrency transactions or trades are in the options and futures, the derivatives market as opposed to in the spot

market, by a factor of what, brett? >> by at least a factor of two or three in equities and equity derivatives, similar story there. think how much s&p 500 futures trade. derivatives are an excellent vehicle for hedging, for capital efficiency, and there's no difference in that in the crypto markets where people might want to have exposure to this asset class without needing to actually hold spot cryptocurrency in hot or cold wallets and deal with direct ownership or transferring of spot cryptocurrencies. >> this is something bob pisani has been reporting on, brett, that perhaps bitcoin futures sort of are the way to having a bitcoin etf. does this step kind of fit in with that idea, that we could see an etf emerge based on bitcoin futures which maynot

placate those who are more purist but if you're more purist, there's always the more straightforward way to go. >> it makes a lot of sense for the first step to having a crypto etf that we want to look to futures there's an existing very well understood, very well regulated futures market when you have an etf, you want to make sure that the underlying index cannot be manipulated. so looking to crypto futures for that kind of tran pasparent proc is an important step toward getting a good etf out there for us getting into that space, hopefully it means that we can have futures that will be included in an etf some day. >> this seems like a very logical i hesitate to use the world built on acquisition what should we infer from this about the future of ftx and

ftx.us are there other kinds of cryptocurrency-related businesses that you would be in the market to buy to round out your portfolio of offerings? >> so ftx.us, one of the great things about it is as an exchange it wasn't built specifically just for crypto you know, we're a full stack platform we offer a matching engine, an iphone and android app to trade, we're a risk and margining system it was built with the understanding that we would like to be the exchange for everything not just for spot cryptocurrencies but in the near future cryptocurrency options and futures. perhaps we'd like to get into other asset classes more traditionally available to investors. so vanilla stocks and vanilla options in the u.s. is an option for us so we're looking in general to find cases where we can use technology and our platform and our expertise and our culture of compliance to build a really,

truly excellent product for the population, both for retail and for institutions. >> a personal question if i may. >> of course >> not that kind of personal question but you were at citadel for your career prior to this you have a bachelor's, a master's from harvard in computer science what drew you into the crypto space? >> so it's an interesting story. for most of my career i was at g street capital i was a software developer building ot algorithmic trading systems, user interfaces while i was therei overlapped with a trader on the international etf desk we had worked together on a number of projects fast forward while i was at citadel securities, towards the end of my time there, we were texting back and forth as we had been doing and out of the blue he said, hey, do you want to come join ftx? at the time i really had very little experience in crypto. at the time citadel securities

wasn't doing anything in crypto. it seemed like an unbelievable opportunity to jump into the world and so that's how it happened >> so the offer came and then you became a bitcoiner i don't want to call you names that you wouldn't call yourself. no, it is just interesting obviously there's a lot of careers in flux as people ponder their futures on traditional wall street versus the crypto space. thank you for joining us today. >> thank you so much for having me. >> brett harrison. >> it's a little interesting, isn't it, that they have chosen -- they're going to have their name on the miami heat arena this year. when you look at major league baseball and the umpires, they all have ftx.us. so you're advertising on this hated class of -- who likes an umpire but you see it every night you watch the games. >> the miami heat i think have a better reputation, generally speaking, than baseball umpires. still ahead, we're tracking wearable health company whoop raising $200 million in its latest funding round backed by a

score of pro athlete investors their ceo will join us live to talk about their ambitions next. plus check out alphabet. it's up 65% since january. what's driving the gains we'll be right back. what happens when we welcome change? we can transform our workforce overnight out of convenience, or necessity. we can explore uncharted waters, and not only make new discoveries, but get there faster, with better outcomes. with app, cloud and anywhere workspace solutions, vmware helps companies navigate change-- meeting them where they are, and getting them where they want to be. faster. vmware. welcome change.

welcome back i'm rahel solomon and here is your cnbc news update at this hour president biden is scheduled to speak a little later this hour about the end of america's military mission in afghanistan. now that the u.s. is gone, the taliban is in control of kabul's airport. this video was shot by an nbc news producer showing them inspecting mill itary helicopte deliberately damaged so they couldn't be reused. the delta variant has helped push total u.s. covid cases above 39 million a new poll shows that only 20% of americans now say that they are not likely to get vaccinated that's a new low more parents plan to get shots for their young children once they're offered. after a slow start the 27 members of the european union have reached their goal of vaccinating 70% of adults by the

end of the summer. in the u.s., 63% of adults are vaccinated. google says that it will wait until early january to start welcoming workers back to their offices on a voluntary basis. that is a three-month delay from the previous october target. so i guess, kelly, we'll have to see if that actually holds i'll send it back to you. >> in january, let's hope things aren't raging in the winter. rahel, thank you very much. let's turn our attention to markets. dow down 45, s&p down, nasdaq up at this hour oil closing in a few moments crude is trading down a fraction in today's session here are some of the market movers today first up, a crypto schism. bitcoin lower and trading below $48,000 and ethereum is on the rise and adding 355% this year affirm shares are lower after massive gains yesterday. they announced a partnership

with amazon but we're down 5% after yesterday's big pop. finally check out lendingclub. the name is up 10% today and it's reaping the benefits of low interest rates at a time when n nonbank lenders are thriving >> thank you very much, kelly. ahead on "power lunch" the best alphabet. our next guest will tell you which name will come out on top in the clash of the tech titans. we are awaiting a speech from president biden later this hour we'll ing atbrth to you live when it happens. we'll be right back with more "power lunch." new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today.

welcome back to "power lunch. one of the hottest parts of the stock market over the past three months has been cloud computing-related stocks some of the biggest gainers are names like paycom software, zscaler and shopify. etfs that tracks that industry, the global x cloud computing etf, the ticker clou, has risen by 17% during that span. the fund hit a record high just yesterday so keep an eye on those stocks possibly more of a sign there's a tilt towards those growth oriented stocks.

ty, back over to you. global interest rates are rising on hotter than expected housing prices european cpi rick santelli is tracking the action for us at the cme tell us about it, rick >> yes, tyler. you know, normally the u.s. leads. if you look at a chart starting on august 1st of 10-years, you can see we definitely failed to get above 1.40% and for the most part we've been hovering although we turned up a bit. the interesting part is that bund yields have gone guns high. they closed at minus 38 basis points, 0.38%, that's a six-week high, high yield close and the distance between our 10s and the european 10s, which tyler was just referencing, is basically the tightest it's been in about a month we have sort of pad the baton on leading the charge to firm up and normalize. it doesn't seem to be the case now. the ecb has a meeting next

thursday and there's talk. they have two programs to purchase the pep program and the app program. there's talk to maybe reduce those. and finally if you look at a month-to-date of the euro versus the dollar, the euro is virtually at a one-month high. the dollar has been stagnating a bit. even though it's not at its worst levels, the hotter than expected cpi data not only boosted yields, but boosted demand for their currency. back to you. >> thank you very much. if you were searching for gains this year and bought alphabet, you clearly found them take a look. when you break douout the faang the google parent is up 65%. apple has 14% gain and amazon barely higher. alphabet is on pace for its longest monthly rally since 2009 it hid another all-time high yesterday. why are investors so bullish with me is gene munster. gene, it's good to have you.

what accounts for this breakout move by alphabet lately? >> there are two reasons first it was undervalued entering the year. google is in fact the oxygen of the internet second is that there has been this advertising boom. 82% of google's business is ad based. and the ad business saw this rebound with the reopening and also inflationary environment. when you put that together, the numbers are staggering because their ad business grew 70% in june, it grew 34% in the march quarter. so to answer your question is what has driven it, it has been largely those two factors. and then maybe add a little bit of other bets. they have got about seven other core businesses within that. these are things that fall under the line wamo pops its head up occasionally in the news that business is getting more

optimism and has been driving shares. >> so essentially advertising. so eyeballs online, let's call it you see google what it's doing, you see facebook up 40%, while apple and amazon are trailing. you know, still, apple and amazon would seem to be beneficiaries of people spending more time online why are they not participating in the same kinds of gains that google and facebook enjoy? >> the numbers have been so impressive when you look at google and facebook, those two, they had the biggest hit a year ago when advertisers started to pull back their spending and then they had the biggest lift here. and so these stocks have essentially traded largely along those lines. i gravitate back to the topic of apple, amazon, google, facebook. where is this going to play out. i think it's set up for investors to contemplate a major deceleration in google's

business we talk about 70% growth in the june quarter for the back half of the year analysts are expecting this to go to 30%. kelly, to answer your question, there's just been a more pro founding uptake in google and facebook's ad business but i think you'll see a changing of leadership here in the months ahead. kind of a gravitation back to apple and amazon. >> i see, gene, google as a one-stop shop for everything digital, from youtube to google docs to google classroom to had advertising to all the things they do. what is the regulatory risk for google >> well, the recent line, probably the biggest risk is not the most recent. the headlines recently are around stuff in the app store changes. the biggest risk is that they do give preferential treatment to their advertising business search is the lion's share of

that 82% of advertising revenue. what that means when you say preferential treatment, when you search, for example, for restaurants and you get google maps that comes up as the first answer, the first response from google, that preferential treatment could some changes around that. it's happened in europe and they have powered through it. probably the biggest regulatory risk is just talk of regulation. we are becoming increasingly more dependient on these companies which increases the target and this next chapter around regulation will probably be what we've seen in south korea. >> this story you're discussing still sees apple shares, shares of alphabet barely reacting. this would seem to be a major salvo in the fight to open up the app store. why not a bigger reaction, do you think? >> there's two pieces. number one is it takes longer

than just words and proposed legislation for these regulatory -- for the substance of it to take place, it takes years. second, these companies have had this incredible power to work around some of the challenges. for example, i was just outlining some changes in the preferential search treatment. or search and youtube, some of those connections. if they were to sever those, i suspect that just our behavior, our dependence on it the fact that this is the oxygen of the internet. investors recognize that when you need oxygen, you'll find a way to get it i think google will find a way to increase its price on existing ads or finding a way to navigate through this. >> the name alphabet looks more appropriate than ever after its performance this year. thanks for your time today gene munster up next, it is the one-year anniversary for three of the newest dow stocks. our trading nation team will take a look at how they have done and whether you should buy. plus, we are still waiting for president biden to make

comments about the final troops being pulled from afghanistan. we'll bring you that when it happens.

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welcome back to "power lunch. time for trading nation. it's been exactly a year since the dow welcomed its newest members. honeywell, salesforce and amgen. which of these baby dows should you bet on now let's bring in nancy tengler nancy, great to see you. you have interests in all of these. let's start with the one you've exited, which is amgen you sort of love it or lose it you lost it. >> we sure did you know, tyler, you've been in this business along time at some point you have to admit you're not just early, you're simply wrong we've owned the stock for a long time, great dividend it's underperformed the s&p and the s&p health care index by half so we finally realized there were better places for us to be and we exited a while ago.

>> so you loved the stock but it didn't love you back so get out of here, leave it behind crm sales force, that is one of your faves. >> yeah, it is given where we are in the economic cycle, we've been talking about growth is going to slow in 2022, it's just the math, not an original thought to us so we've been repositioning our portfolios to take on a little more growth we think this is one because it's underperformed for the last year, because they had blowout earnings, it wasn't just that revenue hit a new high but margins expanded nicely. they raised guidance, so up 23% this last quarter, up 24% guidance in 2022 and we think this is a place where you can step in and add to holdings it's hard to argue it's cheap on a multiple basis at 60 times, although it is in the peer group relatively cheap but on a relative price to sales ratio, what am i paying for sales this is in our 12 best ideas

portfolio. >> you love honeywell, it's one of your largest holdings you say the management team exceptional. nancy, always good to see you. that you for being with us. >> thanks, tyler. >> for more trading nation head to our website and follow us on twitter. we are still awaiting president biden's remarks on the withdrawal from afghanistan. we'll bring that to you as soon as it begins. plus the maker of a wearable fitness tracker being valued at $3.6 billion after its latest funding round backed by softbank and athletes like patrick moemo mahomes, eli manning and others. are they whooping the competition? and now the tralatest there trading nation >> a common mistake some investors make is searching for stocks with the highest dividend yield.

that could mean that the stock price has come down sharply or that the dividend itself is as risk of being cut. so before you reach for yield, be sure that the stock is also fundamentally sounding ng g. today, things can be pretty unexpected. but your customers, they still expect things to be simple. and they want it all personalized. with ibm, you can do both. businesses like insurers can automate it processes across clouds. so agents can spend more time on customer needs.

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welcome back to "power lunch. shares of textron are getting a boost outpacing the broader market thanks to analysts who have upgraded that stock to an outperform it was a prior market perform. the target price goes to $95 it was $75 they cited continued positive momentum in private and business jet usage as well as the ability to capitalize on the growing market for electric vertical takeoff and landing aircraft, or vtols it's behind bell helicopters and cessna and beechcraft planes. >> the evtols? >> all right, dom, thanks. turning to the wearable tech wars, health and fitness tracker whoop announcing the completion of a $200 million funding round.

the series f round was left by softbank's vision round two and will help them enter new markets. it's already an official partner of the lpga and pga tour it has raised funds from athletes like patrick mahomes, kevin durant and rory mcilroy and justin thomas. here now for a first on cnbc interview is whoop founder and ceo. will, congratulations and thanks for joining us. >> thank you thanks for having me. >> how do you get people to wear whoop when their apple watch does so much health tracking already? >> well, the focus for whop is really on unlocking huma performance. the product itself is a small sensor it's designed to continuously measure everything about strain, recovery and sleep i think our focus on behavior change and health monitoring has been a differentiator for us in the market you know, there's a lot of products or wearables, i should say, that have so many features

that you wonder what specifically they're actually set out to do. whereas to whoop, it's clear what we have set out to do, to be the best health monitoring on the market fort naturally whoop members around the world have been experiencing that, because they change their behavior and increase nair health. >> when i'm playing a round of golf, what am i going to do in looking at that device that will help me shoot a better score >> well, for professional athletes and very serious competitors, there's a big focus on recovery. so if you're a professional golfer like justin or rory other others, a lot of it comes back to understanding that other 20 hours of the day when you're not playing golf, or at least in a competitive setting. how are you recovering from that time

what are you eating? , are you preparing for bed properly what sorts of supplements are you putting in your body the notion that you're a professional athlete only when you're playing has changed you're a professional athlete 24/7, it turns out that same technology is now working for everyday folks who want to better understand their bodies and how they can perform better in their daily lives. >> how does whoop know whether i'm putting sauteed squash in my body or sitting after a round and eating cheetos and drinking a six. how does it know >> that's quite a diet you've got there. [ laughter ] >> you should see me on a good day. [ laughter ] >> yeah. one of the unique capabilities of whoop is that it has a whoop journal, where you can actually input 70 to 80 different lifestyle and behavior

decisions, and see how they affect your body so, for example, people tracking alcohol consumption, different supplements they take, different diets they take, maybe a new lifestyle decision like introducing meditation, mindsfulness, so even prescription drugs, things of that nature, people are tracking on whoop what it does a good job of showing you is, okay, these two or three things are positive for your body, these two or three things are negative. you, as an individual, can respond accordingly. we can see more than ever whoop's presence when we're literally watching golf tournaments, there's an icon if you call it that, during the pga tour that's giving you their heart 2k7 beat, i guess in real time it's a fun way to visualize more of what's going on in these players' bodies, even as they're performing out there on the course will, i want to ask you the obvious question for our audience

how do you make money? >> good question we sell a subscription, you know, we charge anywhere from $18 to $30 a month everything is included so hardware, software, analytics, all comes with the subscription bhoop is the first wearable business to be entirely a subscription can you sign up for as little as $30, and we sent you this fist dated piece of hardware included it's up to us to prove we can deliver value to you every day, week, month, year, as part of that subscription. i think the whoop business model is one of the most unique things about the company. >> i think he know my gift for tyler this year for christmas. will, thanks for joining us. good to see you. >> thanks for having me. >> and a good sport to boot. one ratio shows this is the most expensive market in decades. we're going to look under the microscope next.

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the major averages are near new highs. there's one measure that shows the market hasn't been this expensive in at least two decades. dom chu is here to take a look >> we often talk about this notion from a price-to-earnings perspective the markets are near these elevated levels.

who can blame them the market keeps making steady highs. it's been a real up trend this entire time. with the rising prices have also come along with it the notion of rising earnings expectations weft metrics is price-to-earnings ratio. what that simply means is you're looking at the earnings estimate this year. that metric has gotten elevated, but kind of come down to maybe aier or go mean if the markets keep going higher, that means estimates have to keep going higher. that one metric we're talking about is forward price-to-sales ratio. what that simply means is what analysts think the consensus revenue estimates will be for the s&p 500 in the coming year, and then the price you attach to them today by many measures, it's been at least 20 years

we have not dean a forward price-to-sales ratio as high as we have seen today, so that implies, tyler, kelly, if you look at the overall market from a sales or revenue perspective, you are paying more for every expected dollar of revenues that the s&p will make in the coming year than you have again, like you said, tyler, at least 20-some years. >> so sales will have to keep going up, up, up, at a robust pace can't have economic slowdown here, or that the market will get even more expensive. >> oftentimes there are some folks investor analyst-wise that like to look at sales as a be measure of valuation it is a lot harder to kind of make it or move things around with regard to the overall revenues you make, as opposed to earnings where you can take charge or put things back, adjusted ebitdas all of those things make

earnings perhaps less transparent. you can do stock buybacks and fiddle with the eps. >> the way you look at the acceleration of that chart, it does get you thinking. no sign of the president yet, but -- >> he'll be along. thanks for watching. "closing bell" will take it forward from here. we are standing by for the president as well. welcome, everyone, to "closing bell." the major averages are mixed on this final day of august as the s&p 500 looks to wrap up its seventh strike month of gains. >> let's have a look at what is driving the action the nasdaq the biggest winner in august, but fluing the flat line chip stocks also taking a step back case-shiller had the biggest rise on record, an