Stocks opened lower on Wednesday as a slew of firms beating earnings estimates failed to generate much market momentum. Art Cashin, director of floor operations at UBS Financial Services, shared his insights.
“It’s too early to make a hasty generalization, but it’s beginning to look like some of the latter stage of the rally in the last couple of weeks was in anticipation of good earnings,” Cashin told CNBC.
“Even when they come in, they’re not causing any reaction. We’ll know over the next couple of days if it continues.”
Cashin said the S&P 500 is currently right near a “very important-looking resistance area” at 1,100 to 1,115.
“We’ll see if we’re into another sideways consolidation before an up-move or if we’re starting to roll over a little bit,” he said. “This is a conjuncture of all kinds of things—downtrend lines, wedge formations or a variation of things.”
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Cashin also said the influence of the dollar on both trading and earnings is significant.
“For example, Coke’s sales away from America were a big contributor to making earnings right,” he said.
“That’s not necessarily helping unemployment or other things in the U.S., so we’ve got a dichotomy of the stock market looking at the global world and then trying to figure out if the U.S. economy can get turned back on.”
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Companies That Reported Earnings This Morning:
- Wells Fargo Beats as Profit Up; Shares Fall as Bad Loans Jump
- Morgan Stanley Profit Falls, but Tops Forecasts
- Boeing Posts Loss on Charges From 747, 787 Tests
- Eli Lilly Profit Tops Street View; Raises Year Outlook
No immediate information was available for Cashin or his firm.