Cashin: 'Jobless Recovery' Poses Threat to Markets
The latest jobless claims show the economy is on its way to a "jobless recovery" that could be troublesome for the markets, Art Cashin, director of floor operations at UBS, told CNBC.
Government data Thursday showed weekly jobless claims dropping more than expectations to 601,000, but continuing claims of those unable to find a job remain high, causing concern among investors.
"Continuing claims continue to be a problem," Cashin said. "Anything over 600,000 is not pleasant for this economy, and it continues to look like if we get a recovery it will be a relatively jobless recovery and that'll be something we struggle with."
In the bigger picture, Cashin sees 960 as a key resistance level for the Standard & Poor's 500. If the market can beat that number investors would consider 1,000 "probably a lock."
"You're right at a springboard here," he said. "They haven't been able to penetrate certain moving averages and a couple of trend lines which are all bunched around 960. Punching through there might make 1,000 a reality."