The US GDP shrunk at a slower-than-expected pace in the second quarter. What does it mean for the stock markets?
Art Cashin, director of floor operations at UBS Financial Sevices, offered CNBC his insights.
The market may temper optimism over the economy by analyzing "subsets" of the total GDP number, Cashin said: "How much of it had to do with fewer imports, for instance."
He fears that, despite the rally, the market could still return to its previous doldrums:
"If you give up [Thursday's] gains and get back into that trading rectangle...this could be an 'intermediate top'."
Second Opinions:
Cashin gave his outlook for next week:
"We've got a couple of cycles coming together. ... I'm going to be looking at Wednesday and Thursday in particular."
He noted that if the rally continues through to next Friday, "it will equal the length of the 1929, 1930 bounce — which also took back 48 percent. We'll see if there are further parallels, or if this rally will go off on its own."
Cashin suspects China pulled "Machiavellian" machinations in the US Treasury debt auction. Watch the full interview for more.
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CNBC's Companies in the News:
AIG
UBS
Citigroup
Bank of America
Ford Motor
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Disclosures:
Disclosure information was not available for Cashin or his company.