Caution is in the air as the market awaits Thursday's jobs report, veteran trader Art Cashin told CNBC Wednesday, but not necessarily because investors are worried the numbers will be bad.
The ADP jobs report, viewed as an indicator of the non-farm jobs numbers, reported better-than-expected numbers Wednesday. In turn, the 10-year Treasury yield spiked.
"It looked like it might be just too much of a good thing," Cashin said in an interview with "Closing Bell."
That may have investors worrying about Thursday's jobs numbers, which could possibly impact the 10-year yield and the discussion about when the Federal Reserve moves to raise interest rates.
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"Caution is in the air and that's why we're not moving any further," he said.
"I really think it's hysterical we're all sitting around talking about a market that is worried that prosperity might break out."
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Stocks closed mixed Wednesday, with the Dow and the ending slightly higher.
That said, Cashin, director of floor operations at the NYSE for UBS, thinks there is always potential for some kind of a market melt-up like Jeremy Siegel predicted earlier in the day on "Halftime Report." The renowned Wharton School professor told the show he thinks the Dow could possibly go to 20,000.
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"There is a lot of money on the side. People are not getting a return. They're desperate looking to get some return," Cashin said. "You could get a move that surprises everybody."
—By CNBC's Michelle Fox