Connect with us

Hi, what are you looking for?


S&P 500 could sell-off again next week: Art Cashin

Earlier this week, Invezz reported consumer prices to have eased meaningfully to 7.1%.

But that doesn’t necessarily mean an all clear for the S&P 500 from here on out, says Arthur D. Cashin – the Director of Floor Operations at UBS Financial Services.

S&P 500 must hold the crucial 3,900 level

Responding to a slowdown in inflation, the U.S. Fed switched to a smaller 50 basis points hike on Wednesday. On the flip side, it now sees a terminal rate of 5.1% (higher than before) in 2023 (find out more).

The update on terminal rate has the benchmark index in the red this morning. It’s down close to a 3.0% at writing – and down any further from here, Cashin warned on CNBC’s “Squawk on the Street”, could mean another sell-off next week.

You’ve got to try and hold the 3,900 level. If you break 3,900, be careful as to how the rest of the day goes. If it develops into washout selling, that could get new selling on, not on Friday, but on Monday and Tuesday.

S&P 500 is currently testing the 3,900 level.

Morgan Stanley’s Wilson is dovish for 2023

Also on Thursday, Mike Wilson of Morgan Stanley reiterated his dovish view on the benchmark index. While he does agree that inflation will continue to ease in 2023, it’s the earnings estimates that suggest more pain ahead, he noted in a separate CNBC interview.

Inflation has peaked, we’re pretty confident it’ll come down hard next year. But the growth slowdown is not yet priced in. So, on the index level, we’re pretty pessimistic that we can support these prices.

More alarmingly, he’s not forecasting a minor miss on the earnings front. According to Wilson, earnings could fall up to 20% short of the current estimates for 2023.

His recommendation for next year is simple; avoid the index and invest in stocks you’re convinced will positively surprise in terms of earnings.

The post S&P 500 could sell-off again next week: Art Cashin appeared first on Invezz.

Enter Your Information Below To Receive Free Trading Ideas, Latest News And Articles.

    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like


    Reprinted from the Future of Freedom Foundation President Biden’s campaign to banish (or maybe outlaw) political paranoia took a wallop last spring. In April,...


    Inflation appears to be on the decline. The Personal Consumption Expenditures Price Index (PCEPI), which is the Federal Reserve’s preferred measure of inflation, grew...

    Editor's Pick

    It’s already a cliché, but technology is rapidly improving. And for many businesses, it’s hard to catch up. However, it’s not just the average...

    Editor's Pick

    At Broadband World Forum 2022, Fibocom launched 5G module FG370 based on MediaTek T830 platform, aiming to empower the deployment of 5G FWA for...

    Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2022 All Rights Reserved.