Stocks Struggle For Direction As Software Stocks Lag

Stocks are a mixed bag at midday, as tech weakness weighs on the broader market and artificial intelligence concerns continue to pressure software names. The S&P 500 Index (SPX) and the Dow Jones Industrial Average (DJIA) have edged higher after a choppy open, while the Nasdaq Composite (IXIC) is lower but has pared its steeper losses.

In commodities, gold prices are down 2.9%, while oil slips 1%. Elsewhere, Wall Street's "fear gauge," the Cboe Volatility Index (VIX), is eying a fourth-straight day above 20, potentially its longest span since November.

Wendy's Co (Nasdaq: WEN) is seeing an unusual amount of activity in the options pit. So far, over 155,000 puts have changed hands -- 66 times the average intraday amount. The most popular contract is the February 7 call, followed by the March 6 call, with positions opening at both. WEN is down 9% to trade at $6.81, after the fast food chain announced the closure of 5-6% of its restaurants in the coming months. Barclays (BCS) and UBS (UBS) chimed in with price-target cuts to $8 and $7.50, respectively.

Paramount Skydance Corp (Nasdaq: PSKY) is one of the top performers on the Nasdaq today, after restarting negotiations with Warner Bros. Discovery (WBD). The CBS parent signaled it would be willing to raise its offer and now has seven days to submit its final offer. PSKY was last seen up 6.2% to trade at $10.96, but still is facing a 18.5% six-month decline.

IPG Photonics Corporation (Nasdaq: IPGP) stock one of worst names on the Nasdaq today, after profit-taking triggered a sharp decline, following the company's post-earnings rally that pushed shares to a four-year high. At last check, shares are down 13% at $133.86, and should today's losses hold, IPGP will snap its three-day win streak.