Net Stocks Recover Losses from Hacking Wave
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Internet issues recovered slightly from midday levels on Wednesday. News that successful hacking attempts were spreading to some of the Web's most popular sites had a major impact on the day's trading.
internet.com's Internet Stock Index closed off 2.00, or 0.22 percent, to 922.33, the Nasdaq Composite fell 63.56 to 4363.94 and the Dow Jones industrial average plunged 258.44 to 10699.16.
SoftNet Systems (SOFN) lost 2-5/16 to 42-3/16. CMGI (CMGI) and Compaq Computer (CPQ) will invest $100 million in an initiative with SOFN to bring broadband and mobile Internet services to global business travelers.
The FBI said in a news conference Wednesday morning it is investigating the rash of "denial of service" attacks. Such attacks involve using automated tools to flood Web sites with traffic until they are overwhelmed with requests and will no longer function.
The attacks were good news for Internet security specialists whose stocks moved higher in Wednesday's trading. Those benefiting included Keynote Systems (KEYN), up 4-15/16 to 118-1/2, ISS Group (ISSX), gainede 7-7/8 to 81-3/4 and Axent Technology (AXNT), up 5 to 28-1/4.
Cisco Systems Inc. (CSCO) added 3 to 128-13/16. The company Tuesday reported a fiscal second-quarter operating profit of 25 cents a share, beating analysts' estimates by a penny. The company also announced a 2-for-1 stock split.
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