Art Cashin: Traders excited for Friday's jobs data

Art Cashin, UBS' director of floor operations at the NYSE, said whisper data for Friday's jobs report has Wall Street excited, hinting a buy-the-dip trade may be in play.

"For now it's mostly happy talk, at least that's what I'm hearing," he said. "That's helping to put a little bit of a bid under things."

Stocks have seesawed between gains and losses despite a triple whammy of disappointing data. S&P/Case-Shiller home price data, Chicago PMI and consumer confidence all came in lighter than expected, further illustrating a choppy economic recovery.

Read MoreWatch Art Cashin: Traders may be buying the dip

According to Cashin, traders expect Friday's nonfarm payrolls report to show 230,000 to 300,000 jobs were added in this month; however, official consensus shows an estimate for 215,000 jobs.

Also helping are expectations August's dismal number of 142,000 jobs, which was the worst read this year, will be upwardly revised and/or that there will be some give back in September's number because of August's weakness.

Stocks got a bounce out of the gate after ultralow inflation data in the euro zone sparked hopes the European Central Bank will act more aggressively with easy monetary policy. The ECB will issue a policy statement Thursday followed by a press conference with President Mario Draghi.

During September's press conference, Draghi unveiled stimulus measures in the form of buying securitized loans and covered bonds that will start in October. Just last week he vowed to keep monetary policy loose for as long as it takes to lift very low inflation in the area.

"They really have problems in trying to figure out how to do a full QE," Cashin warned. "They don't have a kind of sovereign debt market that we do."

Tuesday's market close marks the end of the month and the quarter with the rebalancing of several major indexes, including the Russell 2000.