Stocks turned sharply lower on Wednesday following news that showed new home sales hit a record low last month. Art Cashin, director of floor operations at UBS Financial Services, shared his market outlook.
“The market’s done some technical damage to itself,” Cashin told CNBC.
“We all were happy to see it move up above its 200-day moving average and then we’re seeing those vague hints of double dips.”
Cashin linked the weak markets to Tuesday’s disappointing housing data, weak mortgage application news from this morning and the falling Baltic Dry Index—a leading economic indicator to gauge global demand for dry commodities, via shipping.
“So there’s this nagging fear that we don’t have a fully sustainable recovery going on,” he said. “If it turns out that the market’s not sustainable without heavy government influence, we’re not getting back where we are.”
Cashin warned that the next two weeks can be “very critical” to where the markets trade for the rest of the year.
Scorecard—What He Said:
- Cashin's Previous Appearance on CNBC (June 21, 2010)
Opposing Market Views:
- Market Will 'Feel' Like a Double-Dip—But It's Only Volatility
- Markets Will Rise 8-9% by Year-End: Strategist
- Stocks Are 'Still Pretty Cheap'—and Economy Will Lift them
CNBC Data Pages:
Earnings This Week:
Bed Bath & Beyond
Research In Motion
No immediate information was available for Cashin or his firm.