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Watch Cashin: 'Mild bafflement' on stock drop

Thursday, 2 Jan 2014 | 2:20 PM ET
Cashin says: A case of 'mild bafflement'
Thursday, 2 Jan 2014 | 11:40 AM ET
CNBC's Bob Pisani and Art Cashin, of UBS, discuss the market's first-day drop and the case of "mild bafflement" that has traders trying to figure out why.

Art Cashin says there's "mild bafflement" on the NYSE floor about why stocks are down on this first trading day of the year.

Cashin, UBS' director of floor operations at the NYSE, told CNBC's Bob Pisani around midday that "you have some disjointed things. Gold has popped. We were kind of looking forward to that given the tax selling... But they're also looking for prefunded IRAs and other things to take the stock averages higher and that hasn't occurred."

Cashin adds, "I've been hearing convoluted theories about it having something to do with the pop in the (U.S.) dollar but I can't get anyone to explain to me where that arbitrage lies."

He does think there could be something to the theory that U.S. stock are reacting to weak economic data from China. "It could be that China overrides everything."

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