Watch Art Cashin: Stocks aren't in the clear yet

Thursday, 16 Jan 2014 | 3:53 PM ET
Cashin says: Yen rally could hurt carry trade
The 10-year yield and U.S. dollar are virtually motionless, and the equity market still shows signs it is interested in reducing risk, says Art Cashin of UBS, talking with CNBC's Mary Thompson about today's market action. We would be in deeper trouble if it weren't for Caterpillar adding many points to the Dow, adds Cashin.

Art Cashin says the U.S. 10-year yield and the dollar are "virtually motionless," indicating Friday's currency "panic" didn't spill into today's session.

But Cashin, UBS' director of floor operations at the NYSE, told CNBC's Mary Thompson around midday that "the equity market still shows signs of reducing risk. People are a little bit concerned about exposure and they're pulling back."

He notes that "we'd be in deeper trouble" if today's earnings-driven surge for Caterpillar wasn't supporting the Dow.

Cashin is keeping a close eye on Japan's yen. "If that continues to rally, that's going to cause problems in the carry trade, and we'll have some difficulty then."

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