5 Gut checks pre open

Need to Know MAY 29, 2013 5 gut checks ahead of the market's open By Barbara Kollmeyer   That "high as a kite" economic optimism that drove Wall Street higher on Tuesday? It's stuck in a tree or hiding under a rock this morning. Global stocks and U.S. futures are in the red. Sentiment hasn't been helped by a warning from the OECD  that central banks backing out of easy-money programs will send yields spiking and damage the global economy. The OECD also cut its global growth forecast. That OECD warning comes a day after a monster rise for  the 10-year Treasury yield triggered by, uh, well, great data that triggered fears the Fed will be backing out of its easy-money program soon. Thats the  new reality, when good data mean you have to worry. It's also nearing month's end so as Andy McLevey at Interactive Investor, points out, why not some profit taking? Matthew Lynn says the end of QE could be a boon for most markets. HSBC analysts also got negative today, saying a global cyclical downturn is "nigh" and they are cutting exposure to growth and inflation-related assets -- like TIPS, gold and REITS. U.S. Treasurys are the "least-rotten apple in the barrel at the moment." Pragmatic Capitalism is focused on a note from Gluskin Sheff's chief economist David Rosenberg, whose latest note gives four reasons why this market is itching for a correction. And Mark Hulbert offers up another reason to be scared. Key market gauges: The Stoxx Europe 600  was in the process of reversing prior-day gains, taking an extra knock after the OECD also cut its euro-zone growth forecasts. Asia stocks  mostly rose, but it was nothing to write home about. In choppy (the usual these days) trading, the Nikkei  ended up 0.1%, while Hong Kong's Hang Seng Index  retreated 0.6%. The Bank of Thailand cut its key rates by a quarter point to try and tackle the rising Thai baht. U.S. stock market futures are down across the board, not as dramatic as this time on Tuesday, but red nonetheless. Oil was also down as supply data loomed, while gold was getting a lift from weakness in global equities. The economy: Empty U.S. calendar for Tuesday. The Bank of Canada meets and while no change is expected, the tone of its statement is expected to get perkier . The buzz: Smithfield Foods  is leaping ahead in premarket trading on news it's being acquired by a Chinese meat producer for $4.8 billion or $34 a share, a 31% premium to Tuesday's close. Fresh Market  shares rose nearly 4% after lifting its sales outlook . Trina Solar  is sinking after reporting results . Apple  may get some sideways glances this morning. At the D11 tech conference , which kicked off  Tuesday, Apple CEO Tim Cook said he was "extremely interested" in wearable devices. Michael Kors  will be reporting fourth-quarter earnings. The consensus is for 39 cents a share. The chart of the day: There are worries about those home prices that rose the fastest in nearly 7 years. Take a look at this chart, provided by ZeroHedge , which divided median new home prices by the average American's purchasing power via real disposable income per capita. Implies the impossible, says Tyler Durden, "that not only are homes the most unaffordable they have ever been, but that cheap credit propping up the housing market is bigger than it has ever been in history." zerohedge The call of the day:  Gold  and wine have been tracking each other in the past decade, but they're now diverging, notes Bloomberg . The Liv-ex Fine Wine 100 index  is up 5.9% this year, while bullion is down 17%.  As Chris Smith, a London-based investment manager at The Wine Investment Fund, notesthat wine gets more attractive when people get uncertain about the economy. "Now that governments are pumping money into the economy all around the world, that should in theory lead to inflation at some point," he says. The Liv-ex guage could rise another 7.6% by December's end, says Smith's group. Investing in wines? How to do it. Random reads: Residents in Wales were shaken by an earthquake in north Wales last night, giving even some in Dublin a shake.  Minimal damage from the 3.8 magnitude shaker. Apparently there was an earthquake in North Wales last night, this is probably the most exciting thing that has happened here in years — soph (@xxsophjones) May 29, 2013 Switzerland is weighing up a deal to reveal bank client names and pay a multibillion-dollar fine to the U.S. to help resolve that pesky and long-trunning dispute over tax evasion. Minnesota Republican and failed contender for the 2012 Republican presidential nomination Michelle Bachmann says she won't be seeking a fifth term in Congress next year. Lots of, er, anguish-venting on Twitter: Ding Dong! The Witch is dead! http://t.co/8x1zZFFlRP — Eric Miles (@ericmiles) May 29, 2013 And a fresh Pew survey says women are the primary breadwinners in four out of ten households. Cry in your beer. Another title loss for Manchester United . Get the latest news on our mobile site: http://www.marketwatch.com/m MarketWatch has sent you this newsletter because you signed up to receive it. To ensure you receive this newsletter in the future, please add marketwatchmail.com to your list of approved senders. Sent to: alanrussell@princetoncap.com Unsubscribe | Subscribe Copyright 2013 MarketWatch, Inc. All rights reserved. MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc. By using this site, you agree to the Terms of Service and Privacy Policy (updated 6/26/07). MarketWatch - Attn: Customer Service, 201 California St., San Francisco, CA 94111