Stocks opened higher on Monday, after economic bellwether FedEx raised its earnings outlook and sparked careful optimism. Art Cashin, director of floor operations at UBS Financial Services, discussed his market insights.
“Not only did [FedEx ] come in with terrific earnings, they also gave good guidance,” Cashin told CNBC.
“That follows on the back of UPS earnings last week. And so, if the shippers are having a good time, that must mean there must be some business out there.”
In addition to the positive news from the shipping firms, Cashin also noted that:
- General Electric* recently raised its quarterly dividendand
- Sanofi-Aventis is considering an unsolicited bid for Genzyme .
“So that mountain of sideline money at the corporations must be moving,” he said.
However, Cashin said he is still reluctant to jump into the markets.
“You’ve got some real resistance here—first, we need to get the S&P over 1,105 and then above 1,115 to 1,117; so there’s a wall to be scaled here,” he said.
Scorecard—What He Said:
- Cashin's Previous Appearance on CNBC (Jul. 22, 2010)
More Market Intelligence:
- S&P Heading to 1155 then 940 by October: Charts
- Is the Next Leg of the Bull About To Begin?
- This Trading Range Will Break Higher: Stock Picker
CNBC Data Pages:
No immediate information was available for Cashin or his firm.
* General Electric is the parent company of CNBC and CNBC.com.