Jobs and financials each gave investors cause for relief — and continued questions.
Art Cashin, UBS Financial Services director of floor operations, offered CNBC his insights on the bank stress tests, the economy and the stock market.
"The [jobs] numbers are subject to a great deal of revision," Cashin said. "So while they're all happy with today's number, it's a little suspect."
He noted several wrenches in the works throwing off trustworthy labor calculations, including the U.S. Census, which boosted employment in the short term with its army of temporary hires.
"And there's the new paradox. There's a tug-of-war going on: If you get good news for the economy, it should be good for stocks, but at the same time, it'll hurt bonds, yields will go up — and that's going to tug backward on stocks."
As to financials, Cashin said, "I think they'll move off center stage now." He foresees a levelling-off period in which banks try and consolidate their recent gains and good psychology coming off the stress tests, raising capital to meet their upcoming needs.
Cashin has another concern: "The Fed is raising money here, banks are raising money there. So the credit markets are going to get a little tough here."
CNBC's Companies in the News:
Bank of America