Expectations are high for Friday's jobs report, in which some economists anticipate a rise in October nonfarm payrolls and a decline in unemployment. But to some degree, a good jobs number could be bad for the stock market, veteran trader Art Cashin told CNBC on Wednesday.
"People are expecting a reasonably decent number, but that's becoming its own little problem and paradox because you're starting to hear the same thing again: Are things getting so good that the Fed's going to have to move early?" Cashin, director of floor operations at the New York Stock Exchange for UBS, told "Squawk on the Street." "You're now beginning to look like the unemployment rate can get down to 5 percent at the very beginning of 2015 when the Fed's projection doesn't have it doing that till the end of 2015."
Private employers added 230,000 jobs last month, more than estimated and the largest gain since June, according to the ADP National Employment report, which casts a positive light on the labor front two days before the payrolls report.
Read MoreU.S. private sector creates 230,000 jobs in October -ADP
The better-than-expected jobs data helped the stock market to rally in mid-morning trade on Wednesday. Stocks also rallied on the outcome of the midterm elections the day prior, in which Republicans took control of the Senate.
Historically, midterm elections come along with healthy equity returns, as investors embrace the certainty, at least in the short term, the results bring. But Cashin noted the S&P 500 index and Nasdaq were not able to push past Monday's highs, which could suggest a level of resistance.
—CNBC's Kate Gibson contributed to this report.