The Dow tumbled more than 150 points Tuesday after a report showed a sharp drop in existing-home sales, confirming the market's worries about the recovery. Art Cashin, director of floor operations at UBS Financial Services, discussed his insights.
“The comments out of Stiglitz* that Europe might be rolling over…and there was [Martin] Wheale—who is on the British equivalent of the FOMC—he said a double-dip cannot be ruled out,” Cashin told CNBC.
“That got the currency markets a little bit roiled up and it’s put pressure on the futures.”
Cashin said the S&P 500 is approaching some “critical support” levels at around 1,056 to 1,060.
In addition, Cashin said yields have been lower on the 10-year and the 30-year bonds, which reinforces the idea that the economy looks “really bad.”
“The lower those yields go, the more people say there’s real palpable fear out there,” he said. “A London economist wrote: ‘There’s a growth market in pessimism these days and bonds are underscoring that.’”
*Joseph Stiglitz, nobel laureate & economist. Track his outlook:
- Fed Corrupted by Banks (March 8, 2010)
- US Does Not Have Capitalism Now (Jan. 19, 2010)
- US Facing Long Recession (Apr. 25, 2008)
Scorecard—What He Said:
- Cashin's Previous Appearance on CNBC (Aug. 23, 2010)
More Market Analysis:
- Avoid Treasurys, They’ve Had 19-Year Rally: Marc Faber
- Cramer Sees ‘Very Negative’ Trend in Market
- Gold Market Is Like Tech in '1999': CIO
CNBC Data Pages:
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No immediate information was available for Cashin or his firm.