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Art Cashin: Higher yields, lower oil weigh

Art Cashin, UBS' floor director at the NYSE, says rising bond yields hurt stocks out of the gate, causing the Dow Jones industrial average to briefly touch Wednesday's low before rebounding.

The 10-year Treasury yield rose to its highest level in two months, touching 2.6 percent Friday morning.

Market watchers have warned a sudden spike in the yield from the current level to, say, 3.5 percent could derail the rally.

Art Cashin
Adam Jeffery | CNBC
Art Cashin

Higher yields, coupled with crumbling commodity prices, have pushed stocks lower this week with the S&P 500 down 1 percent over the past five days.

Lower oil prices highlight deflationary pressures.

Read MoreArt Cashin: What dropping commodity prices mean

"They're really pounding down on Brent [crude]," said Cashin. "I'm sure in the White House they're chuckling because that also puts pressure on Mr. Putin with lower oil prices."

Falling oil prices benefit the consumer; however, they hurt shale stocks like Whiting Petroleum and Diamondback Energy, which are down about 3 to 4 percent this week.

Cashin said the concern du jour is the Federal Reserve meeting next week. "Today traders want to tiptoe into the weekend, cross their fingers and address the problems [the Fed and Europe] next week."

—By CNBC's Kristen Scholer