Stocks rose Monday morning, as investors moved back into the market after some signs of new merger and acquisition activity. Art Cashin, director of floor operations at UBS Financial Services, discussed his outlook.
“I think we do have a couple of things working for the bulls,” Cashin told CNBC.
Potential acquisitions are a sign that companies are confident the economy will grow and business will improve in the coming quarters, he noted.
“The interesting thing about the sudden bump in mergers is that the acquirors tend to be using cash, which says: ‘I don’t want to use my stock for currency because I think my stock is undervalued,’ so that helps the [equity] bulls out,” Cashin said.
Scorecard—What He Said:
- Cashin's Previous Appearance on CNBC (Aug. 19, 2010)
Market Views—Across the Board:
CNBC Data Pages:
Some Major M&A News:
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No immediate information was available for Cashin or his firm.