U.S. jobless claims rose more than expected last week—by 17,000 to 474,000—after five straight weeks of declines, according to the Labor Department. Art Cashin, director of floor operations at UBS Financial Services, shared his market insights.
“I think [markets are] still depending on the joy from the non-farm payroll data and look at this as a potential blip—and if it were to worsen again next week that will be a problem,” Cashin told CNBC.
“There’s always a theory here that in the month of December, you’ll limit initial unemployment claims because no one wants to fire anybody in front of Christmas."
"And you do get some temporary hiring going on, so people aren’t filing claims.”
Cashin said it is important for the S&P to stay above 1,080.
“If you went substantially 1 percent or more below 1,080 or close below 1,080, that might give a new sell signal,” he said. “Right now, we’re in neutral or slightly positive territory and it needs to stay above that area.”
Cashin added that oil and gold prices have been “Pavlovian” and follows the DXY U.S. dollar index closely.
“[The DXY] had a tremendous influence on gold, which has gotten battered as the dollar has risen; and has battered oil,” he said.
The DXY "is in a resistance area of 76 to 76.30—if it breaks above 76.30, you can get some real short covering and it could put a dent in gold, oil and stocks.”
- Watch Cashin's Previous Appearance on CNBC (Dec. 8, 2009)
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No immediate information was available for Cashin or his firm.