Stocks were mixed Thursday despite a batch of relatively positive economic news. Art Cashin, director of floor operations at UBS Financial Services shared his market outlook.
“Things are still looking shaky in Europe, which might put a cap on the Santa Claus rally,” Cashin told CNBC.
Meanwhile, the 10-year treasury yieldtouched a session high of 3.54 percent, up from 3.52 percent late on Wednesday.
“If rates are going to move up from 3.5 to 4, then I think that might cause a bit of trouble—That’s what happened before,” Cashin explained. “There was an article that said [Pimco’s founder Bill] Gross put $17 million of his own money into bond funds over the last week, so he’s betting that rates aren’t going to go higher.”
“So you could get a spurt when the house passes on the tax compromise, but you’ve got to keep your eye on the dollar, mainly.”
Scorecard—What He Said:
- Cashin's Previous Appearance on CNBC (Dec. 14, 2010)
More Market Intelligence:
- Stocks Likely to See 8-12% Upside Next Year: Chief Investor
- Strategist's 'Ron Paul' Trade: Avoid Stocks, Stay Long US Dollar
CNBC Data Pages:
Thursday's Dow Laggards (As of Mid-Morning):
Procter & Gamble
No immediate information was available for Cashin or his firm.