why would people want prosperity to increase. >> you can say good guys. there's some people who argue when we say it's a good day because you're looking at the upside. we'll take that. >> if we listen to everything people said, we wouldn't be able to say anything. excusemy ba my back. cabrera's there. he's won a u.s. open and masters. ernie's won two. i see tiger -- >> there he is. okay. about midway through. >> tiger is wearing gray today. i've got some gray pants on. total coincidence. but there he is. he's starting, what? >> yours are kind of charcoal. >> he's starting out, it looks like, with some very -- short little backswing on some sand wedges. see him? a beautiful backswing. >> along with this incredible lineup behind us, we also have two very special guests who are with us for the next three hours. jeremy segel, professor of finance at the wharton school at the university of pennsylvania. and barry knapp, head of u.s. equity strategy at barclays. we've already been chatting these guys up because they walked through the mud with us. they are very good sports. >> i rode out with them. >> i caught up with them as we were tromping through. >> do you know what jerry gets at dunkin donuts in the morning. >> i do. you told me. >> hot chocolate. what does coffee do to you? get you more excited? >> i'm sensitive to caffeine. >> are you sensitive to caffeine? we all are. that's why we drink it. >> plenty to talk about with the volatile japanese markets. big recovery rally in the united states on thursday. a fed meeting ahead next week. lots to talk about that including the golf. but before we get to all that, let's head back to inglewood cliffs with some of the top stories. andrew, good morning. >> he's supposed to be here. >> he's not a chicken. he's doing us a favor. >> a chicken? i was -- >> andrew is holing down the fort. >> i was happy to come. i was happy to come. >> i think this is a situation where he is -- we didn't know if we'd get a single shot. >> we thought you would have bad weather. it looks like it's actually better. >> it looks better from tv. >> it's actually worked out better. you had tiger woods walking through the live shot at 6:00 a.m. >> that would not have happened on most days. >> he did go like this. >> he didn't want anyone to know. >> headlines real quick and get back to you on the course. in the meantime, the swrap neez markets staging a partial recovery overnight following yesterday's better than 6% drop from the nikkei. rebound bed by nearly 2%. helped in part by up beat u.s. economic data. also perhaps the piece in the journal. nonetheless, japanese stocks did post their fourth consecutive weekly loss. steve is giving me a face. >> i'd be happy to talk about it. we don't have time, though. keep reading. >> also, markets in turkey this morning, they are rallying. tensions in that country are easing after the prime minister there met with protesters who've been trying to prevent the redevelopment of an istanbul park. they've struck a deal on what to do. we'll explain that in a bit. bonds are trading higher. even as that situation in turkey is cooling, it's becoming more intense in syria this morning. the administration now saying it has confirmed that the government there has used chemical weapons against rebels. it now plans to provide more aid including military support for rebels who oppose president assad. we're going to have more on both of those stories in syria and turkey coming up. corporate headlines this morning. europe's newest passenger jet, the airbus a-350 successfully began its maiden flight. the rival to boeing's 787 dreamliner took off from the airbus facility in toulouse frans watch bid over 10,000 workers aspectators. boeing plans to unveil new plans for the dreamliner. a larger version of the jet will be announced at the paris air show next week. current versions carry anywhere from 210 the 290 passengers. have you been on one, michelle? >> i think so. i'm not big on planes. the futures now, even though the futures are negative territory and fair value is in negative territory, i don't know. last i looked, they were higher. all right. now it's negative open. dow opened lower by roughly six poin points. show you what's going on with oil at this point. higher by 29 cents for tti. present trading at 105.34. higher across the energy complex. 10-year note is climbing. credit is rallying across the world right now based on two stories that look a lot like plants. we'll be tdiscussing this more later on in the show. 10-year yield down to 2.1 from 2.2. gold is higher by 60 cents. 1378. asian stocks rebounding overnight following the previous day's savage selloff. cnbc joins us from singapore with more. >> michelle, you know, it has been a crazy week out here. some of the investors on this side of the world wouldn't mind hitting the links and maybe grabbing a drink to calm their nerves. today the arrows behind me, they're all green. yesterday they were all red. regardless of how much the nikkei regained today, which by the way wasn't enough to bring it out of official bear territory, you really are to take a step back and marvel just at what's been going on in japan and the rest of asia. can you guys believe the nikkei 225 has fallen for a fourth straight week since hitting its 5 1/2 year peak on may 23rd? nearly 700 billion u.s. dollars in market capitalization has been wiped off the nikkei. kathy lean of bk asset management says the question now is when the bank of japan is going to cry uncle and give into market demands. that is more stimulus. meantime the rest of asia has been getting hammered as well. we'll take a look at some of the emerging market indexes. they've been getting slammed despite the rebounds that we saw today. the emerging markets like thailand and the philippines and jakarta, they have really been some of the best performing markets in the world. leading a four-year rally in global stocks. but over the last few weeks, they've been hit particularly hard by this tapering talk. money went in when investors were searching for higher yields. now with all the talk of tapering they have really been slammed. i want to show you guys one more chart -- three more charts. rather two. hang seng and shanghai comp. this is where they stand year to date. they've been hit this week. it's really been a brutal one for them all year so far. joe, back over to you. >> okay. thank you. we actually could see -- we're obsessed. >> we're obsessed. >> yes, we are. let's get back. range is here. k.j. choi is right here. he's going to win one of these one of these times. there's tiger. the way that his club head, barry, lags his hands. you can see i'm always out in front. it will never happen for me. jeremy segel, professor of finance at wharton. the university of pennsylvania. barry knapp is head of u.s. equity strategy at barclay. as we rode out in the car together, it was very interesting. because we talked about lehman brothers. jeremy segel is a great historian of the market who actually was with milton freedman at university of chicago. we got that out of the way. >> i didn't know that. >> yep. barry knapp. samuelson was there as well. he was a young upstart, wasn't he? >> well, samuelson was at m.i.t. at the time. bernanke and draghi. they were on "newsweek" magazine every week. a big debate. i came down firmly in the -- >> i would have never guessed. >> luckily we now -- it's been proven the keynesians were right. things are going so swimmingly right now. how are things going right now, jeremy? what do you think? how is your long term bullish thesis holding up? >> i'm still at 16,000 to 17,000 by year end. >> on the s&p? >> not quite. >> on the dow. >> on the dow. i think all eyes are on the fed. next week's meeting is really going to be key. >> do we need to get that out of the -- greenspan. it does loom. is it going to be a messy exit? >> first there's tapering. then there's stopping. then way down the road is when they start raising rates. people are acting like it's going to happen tomorrow. >> that's the hillson aspect. >> i was looking at the fed funds futures market. and it prices in a 50% probability that the fed funds will be 50 basis points in january of '15. i mean, you know, so wow. that's down the road. a few years ago we'd all talk about it's going to happen the next meeting or meeting after that. now we're talking about just -- the tapering is just stage 1aa. >> barry, you're a little more concerned about the near term, at least. >> actually, i'm more optimistic on the economy than i've been. i think that so far the drop in public policy certainly seems to be helping business investment, labor investment, capital investment. the consumer is proving far more resilient to the tax hikes than i expected. that does bring this whole exit strategy process forward somewhat. now, if you think about '04, by the time we fwot to the first rate hike, the adjustment was almost done. the stock market bottomed five weeks after the first rate hike. this go round i think the adjustment begins when it's confirmed tapering is going to occur. you pull everything forward. once you get past that you start to process. yeah, it'll be a difficult, complex process for the market to go through. but that's at the point where you can start getting much more bullish from my perspective on equities out right. this was always a risk that was looming. >> i'm listening. i heard -- i did. i heard everything you said. >> i want to go back over that. we will. >> we will. we've got to hit all our breaks. we have sponsors or something. we went by the lincoln financial stadium. barry and jeremy will be with us for the rest of the hour. >> we are just getting warmed up this morning. we're here at the u.s. open. we are also back in inglewood cliffs. pepboys ceo michael o'dell, famed golf coach butch harmon, rodney martin, plus a rare interview with michael price. dawn zier. toll brothers chief douglas yearley. it's a big lineup. "squawk box" is back right after this quick break. take a look at the futures, everybody. you'll see right now things have barely budged after all the chaos we've seen in recent days. yeah. at this point, barely lower. you can basically say flat line for all of this. we'll see what happens. >> more on the storm that soaked the east coast. reynolds wolf joins us from the weather channel. which we need. we need more -- i'm glad we own them. i am. he's jacketless today. you start talking about philadelphia. if you lie, i'm going to know. because i'm outside. >> i know. >> you know, watch -- normally we give you a free pass. what's going on, reynolds? >> i hear you, man. >> are they going to get this round in? >> joe, it's going to be iffy today. saturday is the best day. sunday showers back in. i think they'll hold off till later in the day. joe, you're always good to me. i'll try to be good to you guys. a lot of rain we had yesterday sweeping its way back into the atlantic. sunny skies in the ohio valley. fantastic for them. this weekend what we can expect is another round of severe weather. i know. we don't need it. we don't want it. it looks like we might have some pop up in parts of the central plains. perhaps even into portions of the central rockies. notice sunshine expected for much of the weekend in the northeast. maybe late sunday you might see the showers run through. hopefully it will get better for you, though. take a look. air travel, come on, computer. wake up. we're going to be seeing backups in the parts of the northeast. namely we could see them in places like boston. moderate chance of backups. also delays possible in philadelphia, minneapolis by the afternoon, you might have some slowdowns on the tarmac. guys, back to you. joe and the crew. >> reynolds, you're messing with us. now you're doing the eric fisher. that's exactly how -- i'm even a caddie groupie. that is the new zealand -- tiger's old caddie that got into -- >> steve. >> yeah, steve. yeah. you're doing the -- did you do that on purpose? you're messing with us? rolling your sleeves up? you look just like eric now. usually you've got the, you know -- >> to be honest with you, we just found out -- my wife and i found out we're expecting our fourth baby, our fourth kid. so the mind's been a little bit crazy lately. actually left today and left the jacket at home. >> way to go. congratulations. >> number four. wow. getting it done. >> we're in trouble now. it's game over. >> you are a wolf. you are. all right. coming up, all right, guys. syria, turkey, and other international stories moving markets. we'll have much more from merion golf club. you should try getting in here today to where we were. also, butch harmon is going to be here. we're going to talk the business of golf on the green with usga president clint nager. "squawk box" will be right back after this. it's muddy, look. >> tiger still there. ♪ [ female announcer ] it's time for the annual shareholders meeting. ♪ there'll be the usual presentations on research. ♪ and development. a few distribution issues will be resolved. some new members of the team will be introduced. as usual the i.t. department is always there to lend a hand. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you're responsible for liquid assets. and employee incentives. you just need the right professional to help you take charge. because you don't measure your success by the size of a pie chart, but rather by the quality of the pie. ♪ ♪ time for the fwloglobal mar report. some people call -- they think they need to say u.s. open because of this small tournament they play. >> ross would probably say that. >> let's get to ross westgate. i know he loves the game. we watched the open. poulter, ross, was going to be with us. but he started -- got three straight birdies right out of the gate at 10, 11 and 12. we're 40 minutes away from where his hotel was. he would have had to come here, go back, come here. his manager said are you out of your mind? it's the u.s. open. but this is going to be great. luke donald. i guess you saw that. it's been a while. >> 4 under? >> yeah. >> did you have the same preparation as phil, joe? did you kind of last minute fly in and then shoot 3 under, shoot 7? >> i didn't shoot 3 under. we did come down late last night. yeah. phil, i think he's finished second. had better finishing than anyone else who hasn't won. he wants this really bad. you know who really wants it bad to get back on the major track is tiger. he's still hitting over there. >> he's still right here. >> he's still hitting over there. ross, i'm going -- >> by the way, you got the right footwear, right? it's not a day for classics. you've got to wear the try joys. practice ground looks really wet. >> it is. >> what are dry joys? >> becky selected some white jeans to wear. if she had slipped, it was very easy. >> we were walking down the hill. >> i wasn't hoping for it. >> yes, you were. >> it would have been interesting. >> i would have taken you down with me. >> yeah, you would have. >> white trousers. very bullish call i would say. joe, i'm going to watch with interest. i'm insanely jealous, as you can imagine that you're sitting there and i'm here. great show, guys. 8-2 advances outpace decline. following that rally on the u.s. yesterday. continued in asia overnight. we've stopped four days of losses for european equities. ftse 100 was just up. was just up five points yesterday. slim gains today. only up seven points. we've come back from the earlier session highs. cac up .2%. dax up .4%. ftse mid down a quarter. sector breakdowns. see how we're weighted to the upside. some of the notables. resources for once having a better day. a serial underperformer because of the weak growth -- weaker than expected growth coming out of china. utilities health care. the more defensive end. bond yields are a little bit lower as well across the board today. 10-year bund yields down. spanish yields down as well. just adding to a certain amount of comfort factor here in europe. that's where we stand. let's move away from merion. take you back to the u.s. studios and michelle is there. >> hey. >> why are we in studios, michelle? >> we're in studio -- well, we were worried about the weather at the u.s. open. >> we knew we were -- we knew there was going to be serious news this morning. >> there's serious news. >> in syria, no less. >> that's right. ross, good to see you. i know how much you love golf, too. the white house promising to step up assistance to syrian rebels after determining the assad government has used chemical weapons against the rebels. it's also studying the possibility of a no-fly zone. steven cook is a senior fellow if for middle eastern studies at the council on foreign relations. a major policy change by the obama administration in the last 24 hours saying they are going to assist the rebels in some form or fashion. reporting indicates it's going to be at least anti-tank weaponry but not anti-aircraft weaponry. consensus is that the rebels are on the verge of collapse. is this enough or is it too little, too late? >> well, it's unclear whether this is going to be too little, too late. clearly the rebels are on the defensive. the introduction of large numbers of fighters from hezbollah has made a significant difference for the syrian forces. anti-tank weapons will certainly help them. but they've lost kucera. syrian army are approaching aleppo and homs. this is a dire situation. we've all known the syrian regime has used chemical weapons for quite some time. >> steven, you bring me to -- i'm going to ask the cynical kind of question about process rather than substance that i usually hate from journalists. you bring up this point. everybody seems to have known chemical weapons were in use. what's different now? does this have anything to do with the fact president clinton came out and was critical of the white house for not doing more? >> well, i'm not sure whether it's directly related to what president clinton said. but it's clear, united states's closest allies have said for months now that the syrians have been using chemical weapons. there's also the revelation that 93,000 syrians have been killed in this conflict. that the prospect of iran prevailing in this conflict, the iranians, the syrians and hezbollah would tilt the balance in the region so much would affect u.s. position there for years to come. this is clearly forcing the united states to act. the question is, as you put it, is this too little, too late? my sense is, it probably is. >> okay. so if it probably is, and now we have this iranian dominance in the region and all those things you discussed, what does that mean for the united states, our security, our future foreign policy in the region? >> well, now it's time to back fill. we're going to have to convince our allies in the region, sau s saudis, israelis, turks and others we are, in fact, serious about the iranian challenge in the region. all of these months have gone by in which people rb saying if we do not engage more seriously on syria it's going to send the iranians a message they can fight in the region and advance their influence in the region. now when it is infinitely more complicated the united states is going to have to get more deeply involved in a variety of areas in the region. >> should we -- i'm sorry. we're going to hit a commercial break. turkey. should we be more optimistic now? it looks like there's going to be some kind of court decision about what happened in taksim square? >> i'm not sure this is much of a deal. i think prime minister erdogan remains in a very strong position. but the protesters in gezi park aren't just about the park. they're about the authoritarian turn in turkish politics. >> got it. steven, thank you so much for joining us t