Stocks advanced on Monday and the Dow surpassed the 11,000 mark. However, Art Cashin, director of floor operations at UBS Financial Services and Brian Piskorowski, managing director at Wells Fargo Advisors said investors should be mindful of a possible pullback in the near-term.
“We’ve got a market that’s subsisted on a diet of positive news and that news is getting less bang for its buck at this stage of the rally,” Piskorowski told CNBC. “We’re due for some consolidation and the market hasn’t seen anything more than slightly less than a 5 percent pullback over the last 9 months.”
Piskorowski said although he expects earnings and economic growth to pick up in the second half of the year, it’s not going to be “blockbuster” type of year.
“The majority of GDP growth this year stems from government spending and consumer is still somewhat reluctant,” he said.
In the meantime, Cashin said he sees a 3 to 4 percent pullback going forward.
“We have to watch the advance declines,” said Cashin. “We shouldn’t overanticipate, but if they weaken and pullback from the highs, then you can see something more formal.”
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Top Dow Gainers (As of Noon):
Alcoa
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General Electric*
Chevron
Kraft Foods
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Disclosures:
No immediate information was available for Cashin or Piskorowski.
GE is the parent company of CNBC and CNBC.com.
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