Art Cashin, director of floor operations at UBS, remains skeptic in his analysis about the markets and the notion that perhaps we are seeing the beginnings of an embryonic bull market. Despite reported corporate quarterly results that beat analyst estimates from companies as diverse as Caterpillar (NYSE:CAT), Merck & Co. (NYSE:MRK) and Coca-Cola (NYSE:KO), Mr. Cashin cautions that “there’s a mild thread of disappointment [about these earnings] because again…revenues seem to be coming up short.” According to Cashin, companies are improving their earnings and matching estimates simply by cutting cost. If you hit your costs down to zero, he says, you can’t go any further than that.
Mr. Cashin also said the market is working on its own internal technicals, “so this is kind of a critical week.”
