Seagate stock rises; Supermicro declines after soft earnings report

Shares of the data storage provider rose after the company announced a deal to swap debt for cash and stock. Meanwhile, an artificial intelligence (AI) server maker came under pressure after posting lackluster earnings results.

Major US stock indexes rose after the latest ADP private sector employment data showed a return to private sector job growth in October after several months of declines. The private payrolls report is in the spotlight as official government data releases remain on hold during the government shutdown, which on Wednesday entered its record 36th day.

The S&P 500 rose 0.4% on Wednesday. The Dow Jones advanced 0.5%, while the tech-heavy Nasdaq rose 0.7%. All three market metrics rebounded from losses recorded in the previous session. Read more at Investopedia Daily market summary.

Shares of Seagate Technology (STX) rose 10.1% after the maker of hard drives and other data storage systems announced a deal with lenders to exchange $500 million in debt for cash and stock. Data storage companies have benefited from strong demand related to building AI infrastructure. Shares of Seagate competitor Western Digital (WDC) rose 5.2%.

Other stocks exposed to artificial intelligence enjoyed strong gains on Wednesday, many rebounding from losses suffered in the previous session amid concerns about soaring valuations. Shares of memory chip maker Micron Technology (MU) rose 8.9%, offsetting the sharp decline seen the previous day.

Johnson Controls (JCI), a provider of smart building technologies, reported better-than-expected revenue and adjusted earnings per share for the third quarter. Growth in Europe, the Middle East, Africa and the Americas helped offset pressures in the Asia-Pacific business, which was affected by lower trading volumes in China. Johnson Controls shares jumped 8.8%.

Shares of medical device maker Zimmer Biomet Holdings (ZBH) fell 15.2%, losing the most of any stock in the S&P 500. The maker of hip and knee replacements missed quarterly sales expectations and cut its forecast for organic sales growth for 2025, citing weakness in Latin America, European emerging markets and non-core businesses.

Super Micro Computer ( SMCI ) fell on sales and revised earnings estimates for its fiscal first quarter, and shares of the artificial intelligence server maker fell 11.3%. The company said part of the shortfall was related to changing delivery schedules for major AI deals, which resulted in revenue being postponed to the following quarter.

Shares of Live Nation Entertainment (LYV) fell 10.6% after Ticketmaster’s parent company reported lower-than-expected adjusted earnings for the third quarter. Although revenues rose year-on-year, supported by strong spending on live events, higher direct operating costs impacted profitability.