Art Cashin: My Take on Goldman Sachs, CIT

Monday, 13 Jul 2009 | 12:02 PM ET

Contrary indicators: Banks stocks jumped Monday as Wall Street expects very strong earnings from Goldman Sachs — but star analyst Meredith Whitney also predicted 13 percent unemployment, which would hobble financials' longer-term recovery.

Trader Talk With Art Cashin
Art Cashin, head of floor operations at UBS, has the buzz from the NYSE.

Art Cashin, director of floor operations at UBS Financial Services, offered CNBC his stock-market outlook.

"Everyone's focusing on Goldman [Sachs] and the financials," Cashin said.

"It'll be interesting to see how long the shelf-life is on this thing...if they can sustain it," Cashin said.

  • Top 20 Financial Stocks: Real-Time Quotes

Cashin used a classic colloquialism for unofficial wall Street consensus to voice his caution:

"On the charts, on the cocktail napkins, the market looks quite vulnerable here."

"We're concerned they've broken out of a so-called head-and-shoulders* formation. I'd be a little wary" of stocks right now, he said.

Cashin pointed to upcoming housing data as a cause for concern.

He weighed in on reports that lender CIT Group, the "smallest stock" on the S&P 500, is asking regulators to increase liquidity.

"It's a lifeline to a lot of [smaller] companies. Even if they're saying it doesn't pose systemic risk, at a time when they're talking about taking TARP money to help small businesses, it'd be ironic to let CIT go under, since they do help small businesses."

More from Art Cashin:

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* CNBC Glossary:


Term referring to a chart formation in which a price exhibits three successive rallies, the second one being the highest. Believed by technical analysts to be a bearish indicator.

Visit the CNBC Education Center for full glossary, classic Treasurys strategies and more.

CNBC Slideshows:


CNBC's Companies in the News:

Goldman Sachs

CIT Group

General Motors

Eli Lilly

Bank of America


Disclosure information was not available for Cashin or his company.


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