Stock Movers: M&S Cyberattack Cost, JD Sports Sales Slump, UK Housebuilders Hit by Inflation

M&S Cyberattack Impact

• ⚠️ M&S is facing a £300 million hit to operating profit due to a cyberattack impacting its online business.
• 💰 The disruption to online sales of clothing and home goods is costing the retailer approximately £3 million per day.
• 📉 The stock is down around 2%, extending a month-long decline to 12% since the cyberattack news broke.

JD Sports Sales Decline

• 📉 JD Sports shares dropped significantly, around 10% at the open, following a bleak sales report.
• 📊 Like-for-like sales fell 2% in fiscal 1Q, with a 5.5% decline in North America specifically noted.
• ❓ Traders were spooked by the company removing specific numerical guidance in its statement, opting for a more general 'weaker' outlook.
• 📈 The stock is down 6% currently, after an initial 10% drop, and has fallen 30% over the past year.

UK Housebuilders and Inflation

• 📈 UK housebuilders like Taylor Wimpy, Barratt, and Redrow are down 1-2% due to higher guilt yields driven by rising inflation.
• 🏠 The sector's valuations are notably low, trading below book value, meaning companies are worth less than the land they own.
• 🎯 The market is not pricing in a recovery in homebuilding volumes, despite the UK government's target to build 1.5 million homes annually, with only 300,000 built last year.
• 🏦 With hotter-than-expected inflation, investors are not anticipating interest rate cuts, further pressuring the sector.