France the leader in terms of at least downside. The 10year note yield you ask, show you where we are. 1. 54 and crude is, of course, one of the key parts of the story here. It is up, but yesterday started up, and ended down. Took us with it on the broader markets. It would seem oil once again starting to core core late with the market overall. We will be watching it closely. Lets get to our road map this morning. And were going to start with Hillary Clinton. Getting a big endorsement from a major gop player, meg whitman, as the hewlettpackard executive calls donald trump a demagog. Time warner takes a 10 stake in hulu and the company raising its outlook, Strong Quarter, stock up on the news. We will give you more. Aig shares up nicely after that company beat earnings estimates. Helped by lower expenses. Announcing a 3 billion increase in its buyback. By the way we will talk to its ceo Peter Hancock later in this hour. There you go. Because that is the biggest upside surprise to them. Yeah. Aig is an interesting one to be watching. Looks like its going to be up decent percentage. For as much as kate spade is down. Probably ask about kate spade. Im sure Peter Hancock on kate spade where im going right away. So much today. Lets get to some of it on the broader markets. I need you on time warner. We cant. We have to producers spend hours laboring over the show how they want us to go about doing it. Ive been up since 3 30. Went to bed at 12 30. Its not a contest in terms of lack of sleep. Okay. Ahead of the key report data released by adi showed private sector added 179,000 jobs slightly above street forecast. June payroll growth revised to 176,000. Futures are lower one day after the dow extend the the losing streak to 7. Yeah. I was not sure, 7 or 6. Thank you. Lets talk broader markets then i promise we will get to time warner and talk about the hulu thing in particular. Thats what im fascinated by. We got this adp number, jim. Keep going down. The journal writing a fairly negative piece on earnings. Another i dont know which one was more, that or the piece about biogen getting a couple bids. Honestly, mcdonalds okay, mcdonalds wasnt as great as expected. No. The stock barely down. Cocacola off 0. 58. Revenue growth barely there, earnings down, multiples continue to be high and therefore do you buy this market or are you concerned. A gdp number for the Second Quarter not good. Adp number this morning, 179,000 in july following net upward revisions of 17,000 to the two prior months, a bit ahead of consensus. Keeps the fed on call. Where are we . Its incredible. Its so variable, panera says that the numbers are really good. Dine equity, applebees is down as much as panera bread is up. The mixed day to day, the banks going down off of oil but you dont have chevron going down off of oil. This is an inconsistent market to the point where you just literally can make no judgments other than on a moment to moment. The insurance companies, travelers had a decent number. The stock went down. Aig had a decent number, the stock is flying. The reaction to stocks, fitbit has beaten the quarter for four straight quarters. Today it matters. Today. Today it matters. Hasnt mattered before. Right. The market is putting various different spin on things is what im saying. Its very hard to figure out what its going to spin i felt that Procter Gamble was okay and the stock up on a down day. I thought cvs was good, stock up 4 yesterday. Yeah. 4. It was fairly good. A fine merlot quarter. Of course mr. Merlot is the ceo of cbs. You couldnt have its a good one. Keep going to it. Yes. I have to. Its a good vintage. It is. Im saying, the action, after a quarter, has been so insane that its hard for me to make a determination of whats happening unless its so clearly good, like time warner and then it makes it easy for us. And we want to talk about time warner. You know, it is nine years ago you talked about the fed you went on your famous rant. Nine years ago. Yeah. Time does have a way of going by quickly. Erin burnett works for time warner. Works for the cnn network which is doing quite well. Always glad that tim geithner thought i was spot on in that. Here at cnbc its like a National Holiday we have to play the sound of you on your rant do you mind . Its fine. Lets listen. My people have been in this game for 25 years and they are losing their jobs, and these firms are going to go out of business and hes nuts theyre nuts they know nothing i was sitting on the second floor at our headquarters in the back where where my desk still is and i was i wondered what in the world was going on. We hadnt started that i heard you throughout the building. Because it was i mean, contrary so what some people might have thought it was about a couple brokerage houses i thought were going to go out of business and they did. Proved you right. History has proved you right. I was trying to get people out of them, not into them. On that rant. And they didnt really know. I mean they didnt and, you know, you go back and look at the minutes that was released subprime is contained. Did you see the transcript, five years later, where i was a big laugh line. Did you see cramer. I know. They had it. Laughs. Like laughs. Meanwhile, i dont think you feel that way about the fed at this point. I think i think that both yellen and then subsequently bernanke was very aware of how bad things got, but he wasnt he wasnt at the sometime. Criticized me in the book. Listen, they did not understand the way that so much of subprime was linked as a result of the vast securitization that took place. You did. Slowly. It was an education. That was an education for all of us through 07 to understanding all the linkages and why were in deep, deep trouble. I mean look, i was getting a call from one of the top ten subprime lenders saying listen we just had an expansion of minus 5 default loans to minus 9 over a threemonth period. Unheard of. Okay. And then another subprime to say listen, we can hold it together. And i didnt know you were falling apart. The language was so bad. A broker that said that 2006 2007 vintage of homes was the worst vintage ever since 1934. And then called me back and said its worse than 34. I mean you just had a lot of people and then we were just i kind of lost my cool. I remember the next day matt lauer had me on did i lose my was i off my meds and the post made fun of me three straight days. You go back, it wasnt so bad. Talking about not so bad, time warner was better than expected. That stock is moving higher this after earnings and full year guidance were raised. Earnings above, the Company Announcing its going to take a 10 stake in hulu and will join disney, 21st century fox, our parent comcast though a silent owner comcast has no rights there. Its part of hulu. In some ways, that perhaps the more interesting part of this, jim. I dont want to give short shrift to time warner because the numbers themselves were a beat on and a raise. The stock is up. The call is going on right now. Well share anything we hear from the conference call. The stock was huge at one point, david. Started coming down. It did. Double digit affiliate fee growth, hbo saw affiliate fee growth. Things seem to ramp up for time warner. And the stock was in the 60s when they had the faded Analyst Meeting where he didnt say the numbers were going down but it was interpreted as numbers going down. An amazing buying opportunity of which jeff went on to kind of a charm offense saying listen its not as bad as you think. Recall this year, there was a lot of discussion about potential activist. Finally i think at the time i reported was not going to happen but generally speaking a good year for time warner. I want to get to hulu though. People were thinking they should spin off hbo to bring up value. Just a trade. Yeah, it was. Stock is going to be still up. The hulu deal is interesting, jim, in part because it does seem they are moving towards creating a streaming service at hulu. Separate from their Subscription Service to get ads or not ads and access to tv shows. But the streaming service is going to be very interesting because it is going to have a lot of networks on there. Including, of course, now tnt and the turner networks. And when you think about where theyre going to price that and thats interesting and we dont know and theyre going to roll it out next year. Netflix no, no. They will price it. It has to be higher than netflix. Hulu priced similar to netflix, all the video on demand stuff but this is going to be a streaming service that is robust. In offering you a lot, local stations as well. So this will replace your cable. All right. This will be auto true overthetop offering. Sling tv out there, sony out there, but this could be more significant. Other than now time warner at 10 stake. Fox and disney the key owners here. Give this thing away a couple years ago. What happened . Well, theyre theyve changed the makeup of it. Theyve done pretty well in terms of attracting people who want hulu as an on demand service. Right. But i think streaming will be the key. We continue to hear from everybody, video subs are not going anywhere. When there are robust streaming alternatives over the top where you can get it on your broadband and fill your entertainment needs it will be interesting. Except espn. They will have sports. Fox. Some fox sports. Youre right. Becomes important about sports but a nonsports interested family, maybe its enough for you. The price will be key. Im really curious to see where theyre going to price this service when it comes out. Very big cable bill and part of that is because i do want some sports, probably of course may be one of your other homes, many other homes, maybe you are just happy with that. You keep the sports to the home that youre using when you know youre going to be around the weekend, but for the other house that maybe you use once a month, twice a month, that one. Can i tell you my late father once said after one of these shows that i think youre over extended in this home thing. Because i listen to david faber. Dad, im not over extended. I think youre over extended. David faber wouldnt be saying this. Hes a very good reporter. No. Listen, we cant invest in the stock market. Youre putting it in the Charitable Trust but youre right. In that this is the battleground. The stock, the disney quarter, is viewed as a complete battleground in referendum on the hulu versus the disney. Right. I think this is really important because people keep saying, you know, how do you feel disney long term. Long term will be fine but short term this is in the grips of it, right . Yep. This is important. It is really important. Yeah. By the way, the investment im told is around 560 million, others have it at 580 million, valuing hulu if you want to do the math at 10 stake, around 5. 6 to 5. 8 billion below what some people anticipated the company itself was worth. And on time warner to put it out there, epps is the range, 530 to 540, had been 535 to 545. Im sorry, 535 to 545. Their range goes up a bit and thats why youre seeing the stock up with the affiliate fee growth. Lets get to politics a bit here. Hewlettpackard ceo and republican fundraiser meg whitman, once running for governor of california as a republican, endorsing Hillary Clinton saying she has the Global Experience for the job and Facebook Post whitman slammed donald trump saying, quote, his unsteady hand would endanger our prosperity and national security. His authoritarian character could threaten much more. Whitman, of course, first sounding off about trumps character on squawk on the street. Yeah. Five months ago. We needed to stand up and you can see now many people across the country are standing up against who i think would be a dangerous president. I think donald trump is a din honest demagog. She was early when her man christie she was supporting went to trump she immediately came out very forcefully denouncing both christie and trump and that was actually during our typical Quarterly Earnings interview that we do with meg, but she was shes many months ago. Called him basically a terrible businessman. I asked her will you vote for Hillary Clinton and she kept deferring but now made that decision she will support the democratic nominee. All right. Aig is one of todays gainers on earnings. And were going to have a live and first on cnbc interview with ceo Peter Hancock coming up. Take another look at futures here. You can see we are set up for another lower open, perhaps another lower day, would be eight straight if the markets end lower. More squawk on the street live from post nine when we come back. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. So i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices. The markets hot. Sync your platform on any device with thinkorswim. Only at td ameritrade. Aig as you can see up nicely in the premarket. The company posting quarterly operating profits 98 cents a share, above estimates, helped by lower costs, strength in underwriting, aig authorizes 3 billion in share buybacks. Were going to have a live interview with aig ceo Peter Hancock later this hour. Up next, cramers mad dash as we count you down to the opening bell. Approaching medicare eligibility . Dont put off checking out your Medicare Options until 65. Now is a good time to get the ball rolling. Medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement insurance plans, they could help save you in outofpocket medical costs. Taking informed steps really makes a difference later. Thats what it means to go long™. Call now and request this free decision guide and explore the range of aarp Medicare Supplement plans. All plans like these let you choose any doctor or hospital that accepts medicare patients. These are the only Medicare Supplement insurance plans endorsed by aarp. Call now and request your free decision guide. And start gathering the information you need to help you go long™. They said a bottle was just a bottle. That no one would ever notice me. But i knew i could be more. That one day, i would make people smile. [woman speaking indistinctly] all right. We have about ten minutes before we have the opening bell. Youve come across interesting research, jim, that i think is worth us discussing here which involves the pension fund of japan. Yes. And the government pension, buying enormous quantities of u. S. Stocks. Yes. James gentily came up with this, pun dering why is the market so strong the bid underneath during the fact when oil was coming down, when this Government Pension Fund weve been saying, joe ki buying anything, a billion and a half of alphabet, old google, 100 million worth of whirlpool. Do these aggressively you moving the stocks. How thin this market is. The time period this is the most recent filings at the beginning of august. Just came out. The willingness of bank of japan to buy anything and everything. Big part of the strategy. Etfs, stocks, real estate, bonds, buying it all including our market. Well im wondering whether we remember, in this thin market you can move a kummins. Why are they buying individual names . Whos making these decisions . Are they smart . Maybe japan is actually, you know, thinking these are under valued. David, i find that the again tilly story astonishing and did not know this. Trying to figure out why the stocks act well. Eaton up big. For all i know the japanese are buying on the quarter. The japanese used to come in 87, that was individuals, and move the market up. This is concentrated buying by the government. They had to have been the biggest buyer of ge in the last month. 2 billion is a decent amount for the marketplace. When you go in and buy whirlpool reported a quarter. Huge market cap company. Quarter just okay and look, i mean remember, if you can come with guns blazing in this vin market and buy Something Like whirlpool, they bought they bought 180 million in eaton, 150 million worth of roper. 75 million of intech. Ame. I mean, theyre buying like industrials that people have forgotten about. Its crazy, david. Its just crazy. Well, and a lot of people say its theyre nuts its hard to understand nine years after the rant you may want to go on one about the bank of japan, negative Interest Rates and everything else. Your suit on similar to what erin was wearing that day . She never wore it again. Hanging in the closet somewhere. It is. Crazy. This is crazy. Fascinating. We got a lot more stocks. Were going to be talking about when the opening bell arrives few minutes from now. Stay with us on squawk on the street. Youre here to buy a car. Janei. Youre watching cnbcs squawk on the street live from the Financial Capital of the world. The opening bell will be ringing a few minutes from now. And this is the point at which i turn to my coanchor and ask, today, wednesday, august, what is it 3rd . The key to this market . Okay. I know that this is going to sound a little nutty, but im actually looking at a company that is going to determine a lot of the semis thats been the hot group and looking at corvo. This qrvo. And they reported a quarter where it had bad Gross Margins and at mitted we screwed up on a product. They would have read through it to apple which they shouldnt. Ubs said good things about apple but be aware corvo had been doing great along with skyworks, broadcom and this is confusing people. But if you read through the quarter it is corvo, but there will be a read through on the red hot group that is the semis that has been very strong throughout. Because of takeout. Theres no takeout coming for consolidation has been the key themes amongs