Stocks climbed on Monday following news that China is dropping its informal peg of the yuan to the dollar, a move investors believe will boost Chinese demand for exports as well as commodities. Art Cashin, director of floor operations at UBS Financial Services, shared his market outlook.
“We’re going to go to the second-tier resistance this morning, which is around 1,128 to 1,131" on the S&P, Cashin told CNBC.
“I’m not so sure that the Chinese [currency] move is an unalloyed victory, however,” he said.
“It's putting some pressure on Treasury bonds and it may mean we’re going to have a little bit more difficulty funding some of those deficits.”
Cashin said he is watching for the weekly jobless claims figures, due Thursday.
“This employment situation is not as rosy as people were hoping for and if anything drags on us again, that might be it,” he said.
Scorecard—What He Said:
- Cashin's Previous Appearance on CNBC (Jun. 18, 2010)
More on the Yuan:
China Forex Move Could Thwart US Hopes: Roubini
CNBC Data Pages:
Monday's Top Dow Gainers (as of this writing):
No immediate information was available for Cashin or his firm.