Art Cashin says the yield on the U.S. 10-year note remains the "North Star" for stocks and if it tops 3 percent we'll see some "outright selling" in the stock market.
Cashin, UBS' director of floor operations at the NYSE, said on CNBC, "Interestingly, on Friday it spiked up to 2.93. Stocks hesitated a little bit, but it came right back below it."
Referring to Friday's Dow gain of almost 200 points after the government reported stronger-than-expected jobs growth in November, Cashin added, "I'm going to be very watchful. Wall Street folklore says that big moves on the payroll day, both up and down, tend to dissipate over the next three days or so."