Dow Jones Newswires -- June 1, 2000
UBS Warburg's Dudack Sees Cisco Leading A Nasdaq Rally
Dow Jones Newswires
NEW YORK -- UBS Warburg Chief Investment Strategist Gail Dudack sees Cisco Systems Inc.'s (CSCO) gains heralding a continued rise in the Nasdaq market.
Cisco's shares, which recently traded at 60 13/16, up 4, or 7%, passed a key support level at $50 that was a turning point marking a continued uptrend.
"It's one of the reasons why I think the Nasdaq is in for a little bit of a bounce in here, with Cisco as the leader," said Dudack in a CNBC interview Thursday.
"If Cisco can break through $66, maybe this rally in the Nasdaq can carry on through most of summer. If it can't, then I think it's just a bounce within a bigger trend."
Cisco is a technology bellwether that charts the course for - and outperforms - the broader Nasdaq market, which is currently trying to break above its 200-day moving average, said Dudack.
"Watching these two things together can be helpful in terms of (assessing) the duration of this rally," she said.
Dudack thinks the Nasdaq is likely to trade between 3000 and 4000 for the foreseeable future.
"But if we can get Cisco moving higher, and the Nasdaq through its 200-day, maybe we can get higher than that," she said.
However, Dudack cautioned that the possibility of continued increases in interest rates continues to hang over the market.
"There are risks on the long-term horizon. But on the near-term horizon, we're actually in a bit of an information vacuum, and that's the time that markets can rally," Dudack said.
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