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Watch Art Cashin: 'Good news, bad news, which news?'

Art Cashin says the stock market is a "little bit edgy" as the yield on the U.S. 10-year note tops 2.8 percent.

Cashin, UBS' director of floor operations at the NYSE, told CNBC's Bob Pisani around midday the stock market should have been encouraged by the fastest growth for the U.S. manufacturing sector in 2-1/2 years.

Instead, that stronger-than-expected ISM number hurt stocks by "spooking" the bond market into thinking the Fed may be getting closer to tapering its asset purchases.

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