The Dow soared more than 100 points at the market open on Friday after a government report showed far fewer jobs were lost in November than expected. The U.S. dollar also rose against a basket of currencies after the report, boosting hopes that the recovery is picking up steam.
Art Cashin, director of floor operations at UBS Financial Services, shared his insights on the data and what investors should watch for in the markets.
“We have to wait and see if [the dollar and stock relationship] plays out through the day,” Cashin told CNBC.
“But this is very important—the markets had a very critical juncture and if they can run them back and take the S&P up through the recent high of 1,117, then we’ll see if there’s a range of short covering," Cashin said.
"This could give the market new life and carry the rally into early January. Santa Claus may have come early with this number.”
Cashin said now is the “perfect opportunity” to find out if the markets can soar through the resistance level.
“Then you’ve got a new leg in the rally,” he said. “If they try, and fail, then we may go back into the tunnel.”
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No immediate information was available for Cashin or his firm.