done that with things like staples, o.j., eggs and milk a lot are going to buy bulk, like costco and sam's club sam's is starting to increase prices for membership. >> by the way, this is where the comparison shopping by, say, product ounce is in play because then you don't have had to do the math yourself, the grocery store is doing it for you. dom, thanks. >> it's like a whole "curb your enthusiasm" episode right there. thanks for watching "power lunch. the dow clawing its way back from a 300-point decline the nasdaq and s&p are still in the red. the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen take a look at where we stand right now in the market. at the lows of the day we were down 290 on the dow. now we're up about 18 points or so s&p 500 is only down a third of

1% because it's balanced in between sectors. you've got strength and utilities defensive, health care and consumer staples, but also communication services are strong following through on yesterday's rally. names like netflix, dish, comcast, that's helping the nasdaq but it's still down about 1% that is being weighed down by software and chips take a look at the names dragging most on the nasdaq o10. okta earnings lowered their guidance and the stock is down 32%. nvidia we'll talk to in a moment that's the hardest-hit part of the market on tech coming up we'll talk to theceo of regional bank keycorp about the latest surge in treasury yields and how student loan debt forgiveness could impact their lending business. plus the ceo of chargepoint will join us on the back of earnings that sent the stock

higher this week. we'll kick it off with the market dashboard as always mike santoli what are you watching today? it feels like a split market. >> it's split and also really a quick turn in the middle of the day with this bounce off of, you know, these lows that go back to late july. 3900 and charge on the s&p 500 it seems to me the rally was mostly about -- we've been talking about it the last couple of days, which means the market is getting short term oversold we went down 300 s&p points. down to 3900 this morning. that's more than 7% in a week so that's a pretty heavy short-term loss we do have the jobs number tomorrow, which usually when you have a big known catalyst coming up, the market as i always say likes to get a little more neutral as opposed to leaning too far in one direction that's probably what we have going on right now 3900 was a pretty widely watched area here in terms of potential support. we'll see. as i said, we did get pretty oversold

also if you drew a line trying to connect that entire july -- june to august rally, this is where basically it's either going to stay in place or get challenged the economic numbers, this morning ism manufacturing better than expected. actually accelerated the sell-off bond yields went up and it exacerbated this idea that fed hawkishness is going to be a continued drag on the markets, tightening financial conditions. the economic surprise index is up nicely since the lows in june, sara, which was good initially because it alleviated some of the most acute recession fears. but this little run that we've seen since then, it seems like now that the fed is saying they're not simply going to back off just because they expect inflation to go down, it seems like unfortunately it's a good news equals bad news for the markets type of story. so that's the setup it seems to me going into tomorrow's jobs numbers. >> the takeaway from jackson hole and now that the dust has settled on powell is that they're fine with a recession. >> in a sense.

they feel like something near a recession if not an outright bad one is part of the process. >> and i say it because we've gotten a lot of disinflationary data if you looked inside that -- you said prices paid had a big monthly drop we're seeing it all over commodities prices coming down usually the market would rally on that, but now treasury yields just march higher and stocks sell off because the threshold for the fed on pain on the economy and weaker inflation is much higher. >> that's what they have said. we'll see if that remains consistent remember, a couple of months ago it was headline inflation and gasoline prices. gasoline prices have crashed and now they're talking about core inflation and we need to see financial conditions tighten >> mike, stay with us if you would. we're going to dig into the tech space. nvidia and amd sales to china are in trouble both companies were warned by the u.s. government to stop the export of some ai chips to china. nvidia is applying for a license to continue some exports but unclear whether the u.s. will grant an exemption

nvidia and amd plunging on the back of this announcement and the whole chip sector is getting dragged along. joining us is harsh kumar. you were able to speak with management what did you learn about how big of a deal this is? >> sara, thank you for having us on your show so about five days ago on august 26th, nvidia got a letter from the u.s. government saying that the latest chips may not be sold to the chinese customers of course nvidia sells these chips to china like alibaba, et cetera and such. and so this was a pretty big blow to a company that had already seen its gaming business get eviscerated from the consumer backing offand excessive inventory. so now what that means is the beloved data center business was now coming under pressure. investors love the data center business

it's what they like about the company more than anything else. it's why the multiple is so high and the impact was about 400 million for the current quarter. and we think eventually some of these customers will get a license and some of these customers will be able to get the chips. but nvidia is doing what it can, which is mitt igation efforts to get them to buy all their products and such like that. >> the stock is down 8.3%. i know it's been obviously a long-term winner but if they're quantifying it as a $400 million hit, is that overdone? >> it's $400 million on a $4 billion per quarter revenue stream and so the problem here is tha this brings back flashbacks of the china trade war. you know, who knows where the buck will stop and eventually what will happen but it does bring in about 10 to 11 to 12% of uncertainty to what i mentioned was the beloved data

center business. this is the business the street cares about the most within nvidia so when that particular business gets hit to the 10 to 12 to 14% tune, the stock will have to pay the price and that's what's happening here. >> it's also a reminder, mike santoli, that chips are squarely in the middle of this fight between the u.s. and china, as harsh says, which brings back memories of the trade war. you wonder what comes next. >> for sure. it's also this yet another thing. in bear markets, bad things tend to happen, even out of left field. and it does just create another negative catalyst for at least some companies in this group, like an nvidia where i would argue as much as it was down, it just had such a boom and premium valuation that there was more to be bled out of it. look today, texas instruments is holding up it's a completely different business mix and everything else texas instruments, qualcomm. it seems like the cheaper semis maybe can be a little bit more resilient in this environment

but when it comes to nvidia, everyone loves it and the street has a $205 consensus price target on it. >> even harsh has taken down the price target from 235 to 200, so you still clearly like it at this level who else is at risk? >> so we think effectively what's happening, and you guys were talking about this earlier on your show, that inflation is hitting the consumer pretty hard we had another company that reported last night, a smaller cap play that knocked about doom and gloom in the locked-up sector the general notion that all around china, things are starting to crack a little bit so that message followed by the nvidia message was not well received but the fact is that anybody who supplies to the cutting edge hyperscalers in china would have to take a hard look at their revenues for example, intel or amd, how much of that may come into the

licensing requirement. amd received such a notice but the effect is neglible to their overallrevenue stream which it is not so far for nvidia. >> we got a new lockdown in china last night as well harsh, thank you very much. yields are marching higher again today. that has been the backdrop lately the two-year yield hitting levels we haven't seen since 2007 we'll talk to the ceo of keycorp. the dow is climbing here, up 86 points you're watching "closing bell" on cnbc. my finances were all over the place. and my banking relationship was getting...

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dramatic moves in the bond market u.s. treasury yields rising this week again the 2-year hitting its highest level since 2007 joining us now to talk about what that could mean for the banks is keycorp ceo chris gorman i can't figure out if it's a good environment for the banks because you want to see higher yields, higher interest rates, or we're seeing this deeply inverted yield curve i can't figure out what kind of environment that is for you. >> sara, first of all, thanks for having me. look, i think in general where all the banks are focused is what is the impact of these higher rates and i'm frankly surprised that the rates are higher i think the fed has been pretty clear from the very beginning that its ability to control

inflation is at the top of the list i think the markets thought the fed rates would go up to 3.40, 3.50 and start coming down in 2023 i think chairman powell was pretty clear last friday that the fed is going to continue to do what they need to do to control inflation. what does that mean for credit quality? i think that's what the bank investors are focused on. >> what does it ultimately mean for credit quality and for yyour business >> we think we're really well positioned we've been derisking over the last decade. as we look at the health of our consumer and commercial clients, an interesting statistic our consumers today in non-interest bearing accounts have 60% more cash in their accounts than they did going into the pandemic. so we feel like our customers are well positioned for what will be probably an inevitable downturn they'll be able to weather it. >> 60% more cash deposits than

pre-pandemic that still holds today even though we've seen savings being drawn down >> exactly so that is one of the things that gives us confidence of the resilience not only of our customers but of the customers throughout -- throughout the country. you know, on the commercial side, sara, the real challenge there is not so much inflation, is not so much their business slowing down yet, it's the scarcity of labor and that's where our commercial customers are focused. >> you painted a pretty optimistic portrait about loan growth, both commercial and consumer is that holding up >> it is we continue to see loan growth on a linked quarter basis and year over year part of that is, is the supply chains, sara, become a little less -- free up a little bit people are able to, one, get inventory. secondly an environment where there's a lot of inflation,

people are more likely to go long on inventory than they have in the past, particularly given some of the challenges people have dealt with in terms of availability >> so from your vantage point, it sounds like, chris, you think the economy looks pretty okay. are you expecting a recession? >> i do. i think -- look, it's inevitable that the economy will slow down. we're slowing down as we speak and then the question is, you know, how deep, how long and i think that really remains to be seen we're kind of in uncharted territory. you have -- coming out of the pandemic, you have very significant rate increases one thing a lot of people aren't talking about is the federal reserve unwinding its $9 trillion balance sheet so i am optimistic i do think a soft landing can be engineered, but it's complicated and it will be tricky. >> what about the student loan forgiveness, the new plan by the biden administration what impact does that have on your business and what do you

think of that policy >> so it's actually positive for our business first of all, we have a student loan refinance business that focuses on doctors and dentists. now that there's a definitive end to the federal loan student payment holiday, i think it was extended almost seven times, three years, so that will be good for that business because it removes that uncertainty. the other business that we have that's very interesting is we own a business called grad fin in addition to doing student loan counseling, they help people apply for public service loan forgiveness, a program that's been around for a long time but frankly has been underutilized. i think all the discussion around student loan debt forgive n ness is actually quite helpful to that business. >> wow, didn't expect you to say that but, chris, thanks for highlighting it. appreciate the time. >> thanks. appreciate it. >> chris gorman, keycorp. the dow holding on to some

small gains, but it is a turn-around from where we were earlier, down almost 300 the s&p 500 is climbing back to the flat line. it is being helped by utilities, health care, staples, communication services and now consumer discretionary has joined the positive sectors. you've got strength in a lot of the retail names bath and body works, yum brands, target look at chargepoint giving up a punch of its pop yesterday it's down 7% we'll talk to the ceo about wall street's action to the numbers and how the new inflation reduction act could impact his business we'll be right back.

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chargepoint shares are in the red after getting a 12% pop in yesterday's session the company reporting its second quarter results, seeing more than $100 million in sales growing 93% year over year joining us now is chargepoint's ceo. clearly investors cheered the

update, giving some back today so why are you confident in reiterating the full year sales forecast what are you seeing in terms of growth of the business >> well, sara, thanks for having me you know, we're continuing to see unprecedented demand for our products and services and that's on the back of unprecedented demand for electric vehicles in general in the population at large, both for consumers and fleets so as we commented in our remarks on the earnings call, we saw demand greater than we were able to ship given the supply constraints and our extraordinary growth rate. as we see it, this growth trajectory will continue and we're at the front end of a very, very long protracted multi-year growth cycle. >> obviously installations are going very fast. 70% i think you said what is the greatest challenge to meeting the incredible demand

that you're seeing >> so for us over the last few years, as the world has been grappling with a supply chain dislocation that, frankly, has been unprecedented in all our recent histories, we just basically are trying to maintain our build capacity in the face of the demand for our products with that overhang of a very, very challenging supply chain environment, which we see narrowing over time in the foreseeable future but right now too hard to predict. so that's been the challenge the last few years and we expect that to continue. >> so still supply chain what about the inflation reduction act? the stock is up sharply along with a lot of other ev players after this got passed. what direct impact does this have on you? >> well, we focused over the 15-year history of the company building a business that is -- based on a business model that

doesn't require or depend on subsidies or stimulus to basically be robust. we think critical infrastructure for passenger vehicles as well as fleets can't depend in the long term on any subsidies or incentives with that said, we think that this is good policy, it's balanced between vehicle incentives and infrastructure incentives, and it also really looks at fleets as well as passenger vehicles we think it's reasonably comprehensive. and relative to whether it moves our needle or not really depends on how fast the supply chain situation for us and auto oems clear up given that the demand exceeds supply, both in the infrastructure and auto market, it may have an effect only after the supply chain situations start to subside and we can

build to demand. >> but you do see light at the end of the tunnel on that front, right? >> yeah, we just don't know how far away the light is exactly. now, these policies, they exist for a reasonable period of time, so we're hoping that has things clear up on the supply chain side that people can really pull some investment forward. with that said, our growth rate is extraordinarily high and we treat any additional stimulus as upside >> so the stock is then pretty volatile i don't have to tell you that. it gets swept up sometimes when there are big sell-offs especially around higher rates because you're not profitable. it's a future growth story what is the path on that what are you telling investors about that >> well, we've been very consistent we've maintained that the cross-through cash flow break-even will happen inside of 2024 we haven't come off that guidance since we've been a public company

what you're seeing this quarter was substantial operating leverage, so the growth rate of the operating expenses versus the growth rate of revenue is substantially different now. we forecast that that will continue on a go forward basis based on our internal forecasting and modeling, we're confident that we will cross through crash flow break-even in 2024. >> thank you for joining me for an update. appreciate it. >> thank you look at the cloud stocks they are crashing today to earth. coming up, we're going to discuss what's behind the tf, the cloud etfs worst day since mid-june the dow continues to remain positive just turned positive in the final hour, up 15 points recovering from a nearly 300-point decline. we'll be right back.

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what is wall street buzzing about today? serena williams, of course after last night's stunning performance where she defeated the number two seed in the world in an upset and in incredible fashion, wearing diamond-encrusted nike outfit and sneakers, she will head to the third round of the u.s. open, the final tournament of her historic tennis career the serena effect immediately

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could do the same for finance and venture capcapital keep an eye on the dow, it's hovering between gains and losses the s&p is down one-third of 1%. it's held up by staples, health care and utilities those are the outperformers in the dow. the nasdaq is down a full percent. it's technology names like software that are getting hit the hardest along with the chip stocks disney is exploring a move to a membership program similar to amazon prime our next guest predicted this six years ago. he plays out what it could mean for the stock straight ahead. remember, you can listen to "the closing bell" on the go by following the "closing bell" podcast on your favorite podcast app. down about 30 points on the dow. we'll be right back. power e*trade's award-winning trading app makes trading easier. with its customizable options chain,

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finally, an edit button is coming to twitter. the long-awaited feature was announced by the company in a blog post today. the function right now is being tested internally, but it will roll out first to twitter blue subscribers later this month users will be able to fix their text and add tags to a tweet within 30 minutes of the initial publication. the company says this will help protect the integrity of the conversation and create a publicly accessible record of what was said. the changes come of course amid the company's legal woes with elon musk. back in april the company announced that it was working on an edit button after it was announced musk would join its board and after he conducted a poll himself asking followers if they wanted that feature clearly they do. i think it helps you don't have to erase messages now that have typos. in other media news, prime time for disney. "the wall street journal" reporting the company is

exploring a membership program similar to amazon prime. it could incentivize customers to spend more time on its streaming platform and its theme parks. our next guest made the prediction back in 2016, three years before the launch of disney plus. joining us is the author of that blog post, matt ball he's the former head of strategy at amazon studios. so it's wild that you made that prediction so long ago, matt why do you think this is a good idea for disney? >> the best way to understand this is to observe current disney behavior. there are families that consume different theatrical parts, the go to theme parks and cruises. when you put that behavior in the broader framework of disney into the original corporate strategy of walt disney himself in 1957, the idea that they would use digital technology to bring this all together, to keep

you always within the disney ecosystem, just made sense. >> do you think anybody else could do this in the media universe, like our parent company, comcast, which also has theme parks and streaming? >> we're definitely going to see more products bolted on to streaming services most of hollywood has spent the last five years trying to launch that core product, disney included as that starts to saturate but more importantly as they become more familiar with direct-to-consumer offerings in general that they add in ancillary parts of the business that two make sense. we're looking at two other companies, that would be nbc universal because of the parks department or perhaps warner media or now discovery warner because they have their games division, which is still one of the biggest game publishers globally and produces many of the celebrated titles in the d.c. franchise in particular. >> how should wall street look at this packaging of prime-type memberships across the media

universe, not really moving much on disney's stock price? it does seem to me it would be an opportunity to cross sell and add a new revenue stream. >> certainly the introduction of additional products into the disney plus application should help drive cross purchasing. today they use your love of captain america to recommend other titles within the marvel universe the ability to target just on a merchandise basis another purchase of an item, but most importantly to use that in more tailored advertising into a cruise package themed around the characters that you love should help with cross sell, upsell but we're looking to solidify a generational experience. the fact that a single family, your house so to speak, might be a disney member for decades, that's unique to the company >> yeah, it also i would think give disney a leg up to netflix, which i know is some of the

impetus to you writing this blog post where everybody was trshing disney because netflix was so ahead of the game. where do you think that rivalry stands right now >> well, we're still looking at a netflix which has 80% more subscribers and more recently two and a half times the rpu that's going to close considerably with a price hike we should also note that in november disney plus's three years in the market meaning their three-years of promotion comes to an end. in december, i'm going to go from $3.80 to more than $10 a month. that's going to close a lot of that subscribership data the disney bundle now has the lowest churn in the entire streaming service. that's going to drop a lot of that gap between these two large giants >> matt ball, thank you very much following this very closely.

lululemon under pressure after its earnings after the bell up next, the key numbers and themes investors should be looking out for. plus chips chaumd and okta plunging when we take you inside the market zone, next.

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we are now in the "closing bell" market zone. cnbc senior markets commentator mike santoli is here as always plus we've got kristina partsinevelos on the chip stocks and jon fortt in the pull-back on cloud names mike, we're seeing another day of selling for the s&p and the nasdaq, extending the declines for august we know september is always an ugly month i just wanted to bring up two points today a month ago would have been celebrated by the market oil prices settled down another 3% today, now at the lowest level since january. good news on the gas front, inflation front. the atlanta fed gdp forecast is now predicting 2.6% growth for the third quarter so that's like lower inflation and a soft landing which the market used to love but it seems like now that's completely flipped on its head. >> it has to a large degree upended the previous view that a soft landing was not only possible but was the objective

of the federal reserve now, it's not to say they're going to run away from that possibility, but they have essentially told us they're not particularly data dependent right now. now, if they are, it's because over multiple months they want to see inflation come down, but they're not necessarily going to take heart in what's happened to gasoline and oil prices, even though a few months ago that seemed like the whole ball game. i understand why the market is back on its heels. we firmed up today the market did set stretched the rubber band got stretched pretty far down. it has sprung higher 3900 on the s&p a lot of folks would argue is one place it should try and hold because we've gotten reasonably oversold to me the rally from june into august was both because fed rate expectations were moderating at the same time recession risks looked like it was going down. we still have recession risks looking like it's going down, even more so, but it's on the fed side that has had the bond market repriced and that's what

upended stocks. >> you've got a strong dollar and treasuries that are selling off. take a look at the semi conductors getting crushed led by that big sell-off of shares in nvidia, which is at the bottom of the s&p right now. amd getting hurt after the u.s. government imposed restrictions on chip sales to china kristina partsinevelos joins us. nvidia did get the green light to continue developing some of its chips in china what does that mean for the company at this point? >> it is a little bit of a positive you have to think that nvidia has two major chips that revolve around artificial intelligence one is currently in the development stages the other one has been on the market three years the one that's in development stages, nvidia did get the green light to continue developing that chip with chinese partners. the other one, though, the a-100, that one will need licensing requirements in order to export back to mainland china. however, if nvidia wants to sell this to france or italy, they

would just do so through their hong kong hub. overall this is news that comes after gaming revenue as a little weaker and data center sales are anticipated to grow but it's growing at a slowing rate. definitely news that put pressure on the stock. we're seeing lows close to march 2020 it's not just nvidia, amd also pointed out they may not have as significant of a monetary hit. you had nvidia say they could potentially lose $400 million this next quarter in a drop in china sales, but which other companies are going to come forward and how is china going to retaliate because they did accuse the united states of abusing their powers >> how have the chip companies, kristina, approached the china issue, whether it's the covid lockdowns or some of these geopolitical tensions as we keep an eye on what's happening at taiwan

they're clearly at the center of this how are they dealing with the china issue? >> it's a topic of conversation all the time nvidia said they will continue working with their chinese customers to offer them other technologies, other chips that the younited states is so worri about getting into the hands of china. maybe lowering the reliance in the long term or china given that china is such a big player and they're investing so much money in their chip sector and yet they still have no competition or no competitor to nvidia, especially with leading edge technology. you can't deny it, a lot of these tech companies do their development in the country so you can't say, hey, we're going to say good-bye to china, but it's a slow process to slowly break away from that country. >>inevelospartsinevelos, thank you very much.

campbell's stock is down today volumes were down 4% i did speak this afternoon with the ceo of campbell's soup, mark klaus. he told me they just finished the third wave of price increases and for the moment people pretty good about where they are some concerns today raised by analysts about promotions which did take a little off the top line, klaus told me it's just a normalization of the promotional environment coming out of covid. he said they're not sacrificing margin and it's also not outsized compared to what we're seeing broadly in the industry campbell's soup expecting strong sales growth to continue but the profitability will be hurt by a technical pension fund accounting change. the categories that he is in, especially soup and pasta sauce, are big beneficiaries of this kind of economic environment where there's pressure on consumers. he said consumers trade down to

his categories soup, for instance, is growing double digits. klaus also says that snacks are holding up relatively well some people think they are discretionary, but they're proving less so in this environment. also the team is innovated to keep the newer, millenial customers that came into these brands during the pandemic mike santoli, not sure if you've had the pumpkin spice gold fish, but these are better especiall if you're a pumpkin spice fan. has this stock reflected the fact that they are seeing pretty strong sales growth? there is inflation but volumes are down a little bit. >> i think one member of my household might be up for pumpkin spice goldfish it is the type of stock and business mix that holds up well. it's like $3 a share earnings, 3% dividend yield but steady so i don't necessarily think

that it's gotten overdone in this defensive environment that we've had in the market. sometimes that does happen with some of the food stocks but not necessarily here with campbell's then if you do have a little bit of benefit from reduced food costs, obviously we see what's going on in the commodity market and the supply chain is okay, it might seem like a little bit less of a dicey environment. >> no, on inflation, they're at the end of their fiscal year the worst is going to hit the beginning of next year and moderate throughout the year interestingly it's down today but a lot of the other staple stocks are up. look at the cloud stocks, not so much they're being hit hard the wisdomtree fund on pace for its worst day since back in june okta, the identity software company reporting better than expected quarterly results, but did warn it is re-evaluating some of its longer term targets because of unexpected problems integrating a recent

acquisition. earlier on "tech check" the ceo discussed the impact the macro environment is having on that business listen. >> we are seeing a little bit of macro change, a little lengthening of sales cycles. but i think big picture-wise that's a very small part of our mixed results. we have a lot of corrective actions we're taking that will yield to positive momentum in the future. >> jon fortt joins us. after that nterview, jon, what is your big takeaway on okta and the cascade it's having across software >> well, sara, on okta they are arguing that the macro is just a little piece of it it's really their sales execution and how they weren't able to integrated this other company well enough and partly because of the macro environment, because the labor market is so tight, their sales people aren't sticking around

for it to figure it out. they're losing sales people and that slows momentum a bit. it's down by a third it lost all of the market value that it accumulated since the beginning of 2019. you would think the business is falling apart but that's not really what these results show their competitive position seems to be relatively strong. their momentum being hampered a bit. in this environment there's very little margin of error, right, because the expectations have been high. investors are pretty concerned about what the macro's impact is going to be in the quarters ahead. >> right even though he said it wasn't that big of a deal, what are you getting on the macros from some of these other software companies? i'm looking at datadog which is always at the bottom of the list, down 8.3%, zscaler is down, crowdstrike. what are you getting on the spending environment >> there's a little bit of a accepts once you get outside of the hyperscalers or the big

software names that the story is getting a little bit worse quarter by quarter at first it was we don't really see any macro impact, but we're being a little conservative in case we do see it. sale cycles are lengthening. maybe they have to get extra sign-off, maybe they want to make sure that they expect a certain level of return on investment also you see these companies, okta included, shifting to shorter length of contract so customers committing less money up front, mainly because they want to preserve capital in case things go badly we saw c3ai. so there's more hesitation in enterprise spending whereas a couple months ago that was mainly a consumer thing. we're seeing that leak into enterprise now. >> a lot of good examples.

jon, thank you good to see you. look at lululemon, hopes are high even with the stock down 25% this year, which is actually better performance than nike, under armour and many retail competitors. here's what wall street is expecting. the quarter of the belt bag, it sold out pretty quickly. that should be a benefit on top of solid traffic the expectation is north of 20% sales growth for the question. some questions, inventories. we know they have been bloated across the industry. lulu is no exception promos lulu has not been big on sales and promotions in the past because it hasn't had to will t that stay the case? key question and guidance do they raise the annual guidance it will be a clue about how lulu is seeing back-to-school and holiday spending we want to know about the strength of the consumer, especially the high income

consumer which lulu caters to with $120 yoga pants and $70 bras there have been doubters before. jeffries is calling into question the five-year target. lulu has proven in the past that the strength of its brand has really kept the momentum strong both on sales and margins. i guess the question is valuation. by the way, we'll have the ceo, calvin mcdonald, on right after the results and bring you some of that sound. what do you think of where the stock is trading >> the valuation has been compressed quite a bit it does have a lot more growth runway in terms of market share and it's a smaller market cap. it's down in the 28 times forward earnings range but lower than it spent most of its history at i think it's a good test of the somewhat higher end consumer that has been very much a theme. recently people feeling as if

you want to emphasize those consumers, those brands that cater that direction so we'll obviously see on that front. and i always keep looking at the store expansion potential. it seems like there's really still a lot to go there. but the market has been pretty stingy in giving credit even to the retail and consumer names that have done better than others in this environment. >> all about the belt bag. it was such a good accessory for a summer of travel we've got just about two minutes to go in the trading day dow just hitting session days. what do you see in the internals? >> the market didn't want to lean too negative in front of the jobs number. you see we started out with breadth, 85% to the downside it's improved but still pretty well skewed toward the negative. the u.s. dollar index, i know you were focused on this as well, making you highs, above 1.09 it's more like a 20 plus year high but this is a one-year look at it.

very, very consistent uptrend going right there. we'll see if the jobs number is enough to inflame that even more the volatility index had popped toward 27 earlier but as the market has rallied, it has come back down in the 25 area keep in mind, s&p down something like 7% as of this morning's los in a week and we've gotten back let's call it a percent of that at this point. so clearly at the lower end of the recent range but still holding well above those lows. the debate as to whether or not we have to retest the june lows is still on. doesn't seem like a foregone conclusion that we have to. >> we've just gone positive on the s&p. which means we're going to break the four-day losing streak for the s&p and the dow. if you're looking at the dow, what's helping the most? it's the health care names amgen, united health care, mcdonald's, j&j. the s&p 500 is now higher by a third of 1%. health care, utilities,

communication services, stacples and guess what, the nasdaq 100 also just going positive in the final moments of trade the nasdaq composite is still down 0.2 of 1%, but you've had some buying here just in the last few moments or so, potentially positioning ahead of that all-important jobs report which comes out tomorrow morning. just the nasdaq and russell 2000 extend the losing streak the s&p a third of 1% higher that's it for me on "closing bell." into "overtime" with scott >> all right, sara, thanks very much we'll see you in just a bit. welcome to "overtime." i'm scott wapner we're just getting started here at post 9 at the new york stock exchange and it is good to be back broadcom and lululemon, we'll have those reports the moment they drop and the most important things you need to know as an investor in the meantime let's get right to our talk of tape. september is a historically hard