It's Jim Kramer here. You're listening to the opening bell of CBC's Squawk on the Street.

Don't miss a minute of the action. Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Kinteneer with David Faber, Mike Santoli, a post-9 of the New York Stock Exchange. Kramer has the morning off. Coming off our first back-to-back S&P gains of the month, futures look to give a little bit back at the open as we await some of this

week's high profile inflation data, beginning with Jolts in about an hour, 10-year 422. A roadmap begins

with, as we said, first back-to-back gain since July. Still on pace, though, for the worst month of

the year. Plus, drug price stocks, the White House names Merck Amgen, Abbey products amongst the first 10 drugs

for the first ever direct negotiations between Medicare and those manufacturers.

And Commerce Secretary Romando, making her way to Shanghai this hour.

This as she continues that four-day trip overseas. We will take you live to China.

Let's begin with the markets as we start talking about the month of September.

Yesterday, Mike, it was Sam Stolvall who said, look out.

It's the month where you're more often down than up, although bespoke now says when you're up double digits going into September for the year to date, not nearly as bad.

Usually strength on some level begets further strength. I feel like we've been hyper-focused

on the seasonal stuff this year. It's worked. That's part of the reason. But we also peaked in the

S&P 500 literally on July 31st. So it went right to script. There have been a bundle of years where you did

have it a week of August, followed by a week September, so it's not as if you get one of the other.

That said, I think it's going to have to be about more than just the calendar and working off

the rally that we had going through July. I was just looking at the valuation levels as well as the

absolute market levels at the end of July. So the S&P 500 got up to the kind of peak for this

rally of like 19.7 times forward earnings. Since then, markets down a few percent. Let's call it,

you know, three and a half percent since the closing high.

You've had the forward earnings forecast for the S&P 500 go up two and a half percent.

So it's moderated the valuation to like 18 and a half. Not cheap, but it's definitely if you needed to come off the boil there, it has done so.

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