Markets opened higher on Tuesday as the U.S. dollar turned lower once again, boosting commodities and other stocks.
Art Cashin, director of floor operations at UBS Financial Services, offered CNBC his market insights.
“Apparently what might start [the market correction] would be some movement in the dollar—since the dollar is the orchestra leader now for all kinds of asset classes,” Cashin told CNBC.
Cashin said investors should watch for the end of the quarter when portfolio managers tend to stop buying.
“We peaked out at last Thursday’s highs—the bears are hoping that’s going to show a topping process of slowing down and the bulls are hoping to punch through, maybe catch some more shorts off base and get them rolling in and so near-term, that’s what we’re looking at,” he said. “And going into next week, we’re going to look at end of quarter.”
With third-quarter earnings season approaching, Cashin said companies might face challenges trying to raise their topline and revenues.
“You can probably make them by further cost cutting, but as we discussed, when cost cuts to zero—where are you?”
No immediate information was available for Cashin or his firm.
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