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Art Cashin: Euro Zone Fears May Cap Santa Claus Rally

Thursday, 16 Dec 2010 | 10:24 AM ET

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.”

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Scorecard—What He Said:

  • Cashin's Previous Appearance on CNBC (Dec. 14, 2010)

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More Market Intelligence:

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CNBC Data Pages:

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CNBC Slideshows:

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Thursday's Dow Laggards (As of Mid-Morning):

American Express

Boeing

3M

Procter & Gamble

Microsoft

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Disclosures:

No immediate information was available for Cashin or his firm.

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Disclaimer

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