Marks and Spencer Targets Return to Profit Growth in Fiscal 2027 After Cyber Attack

Marks and Spencer Group (MKS.L) raised its full-year dividend by 16.7% and said it expects to return to profit growth in fiscal 2027 as its transformation program gains momentum.

The British retailer said Wednesday that profit growth resumed in the second half of fiscal 2026 after a cyber incident weighed on its first-half performance. For the 52 weeks ended March 28, its attributable profit declined to 259.4 million pounds sterling from 295.7 million pounds a year earlier, while revenue climbed to 17.27 billion pounds from 13.82 billion pounds.

The food division remained the company's strongest-performing segment, with sales rising 7% year over year. Sales in fashion, home and beauty declined 7.7%, while international sales slipped 7.2%.

M&S said it expects profit growth to resume in fiscal 2027 as it accelerates investment and expands cost-cutting initiatives. Capital expenditure will increase to between 650 million pounds and 750 million pounds, two-thirds of which will be used to pursue long-term growth opportunities in the food business.

"Retailers face a triple whammy of headwinds with increased taxation, a greater regulatory burden and ongoing global conflict. At M&S we are unshaken by short-term events," the company said. "We have a clear plan and there is much within our control as we reinvest in value and quality for our customers."

The retailer will pay a full-year dividend of 0.042 pound per share, up from the 0.036 pound per share paid previously.

The company's stock was up more than 3% in early morning trading.

Nasdaq, S&P 500 Fall For Third Day as Yields Jump

The Nasdaq Composite and the S&P 500 fell for a third consecutive session on Tuesday and Treasury yields jumped, while traders assessed US President Donald Trump's latest remarks on the conflict with Iran.The Nasdaq declined 0.8% to close at 25,870.7, while the S&P 500 lost 0.7% to 7,353.7. The Dow Jones Industrial Average dropped 0.7% to 49,363.9. Six of the 11 sectors ended in the red, led by materials' 2.3% decline, while healthcare paced the gainers."Investors are still navigating a market shaped by geopolitics, oil prices, and rising bond yields," Saxo Bank said in a report.US Treasury yields were higher in Tuesday late-afternoon trade, with the 10-year rate up 4.2 basis points at 4.67% and the two-year rate rising 2.6 basis points to 4.12%.Global bond yields have climbed, which could be attributed to the rise in long-term inflation expectations, particularly in the US, Macquarie said in a report."That's making nominal coupon-paying assets less attractive, and putting upward pressure on long-term yields," Thierry Wizman, global foreign exchange and rates strategist at Macquarie, said. "Aggravating this move in the US is that the (Federal Reserve) has been late to signal that it has moved toward a neutral policy bias, let alone a tightening bias."West Texas Intermediate crude was last down 0.8% at $107.77 per barrel, while Brent fell 0.9% to $111.09.Trump told reporters Tuesday that the US may need to strike Iran again, Reuters reported.That followed his statement on Monday that the US had postponed a planned military strike on Iran amid ongoing negotiations.The delay would last for "a limited period of time," CNN reported, citing Trump."Oil prices are gyrating between yesterday's increase after tough talk from Trump over the weekend and today's slight pullback after Trump said he held off on launching additional attacks on Iran following appeals from Gulf states," Scotiabank said in a note earlier in the day.Washington and Tehran have had a series of talks, but are yet to finalize a framework on a peace deal."The net effect is that oil prices have been higher since Friday and this reflects the general perception that there is no traction in negotiations," Scotiabank said. "Nor should any progress be expected in what is likely to be a stalemate."In company news, Home Depot (HD) reported fiscal first-quarter results above market expectations despite consumer uncertainty, while the home improvement retailer reiterated its full-year outlook. The company's shares rose 0.9%.Nvidia (NVDA) shares ended a choppy session 0.8% lower. The chipmaking giant is scheduled to report results after the closing bell Wednesday.Nvidia's fiscal first-quarter sales are expected to outperform market projections, with potential for "enhanced" cash returns likely to be among the key areas of focus, BofA Securities said in a note e-mailed Tuesday.Gold was down 1.2% at $4,504.40 per troy ounce, while silver lost 3.6% to $74.65 per ounce.

Dow JonesNasdaq CompositeS&P 500$HD$NVDA

NextEra-Dominion Merger Likely Faces Lengthy Virginia Review, RBC Says

The NextEra Energy (NEE) and Dominion Energy (D) merger likely faces a lengthy regulatory review in Virginia, RBC Capital Markets said in a note emailed Tuesday.The companies announced an all-stock deal on Monday that would create the largest regulated electric utility in the world. Dominion's shareholders will hold a 25.5% stake in the combined entity.The expected statutory timeline in Virginia is up to six months, Dominion Chief Executive Robert Blue said during a conference call on Monday, according to a FactSet transcript. "If we expect to file in July, then you're looking at a decision from the Virginia (State Corporation) Commission in January," he said.RBC expects the Virginia commission to take the full time before deciding on the application, in line with how it has handled past deals, analyst Stephen D'Ambrisi said in the note. Dominion unit Virginia Electric and Power Co.'s size relative to companies involved in prior mergers is another reason this regulatory process may take time.The companies said they plan to offer $2.25 billion in bill credits for Dominion customers in Virginia, North Carolina and South Carolina over a two-year period after the deal completes.That move is aimed at trying to get ahead of "potential regulatory pushback," D'Ambrisi said.Regulators are also expected to scrutinize the combined company's New England Power Pool position for potential divestiture requirements, RBC said.NextEra's Seabrook facility in New Hampshire and Dominion's Millstone facility in Connecticut control more than 10% of the New England Power Pool's generating capacity, according to the RBC note.RBC reiterated its sector perform rating on Dominion's stock and raised the price target to $72 from $66 to reflect the implied deal consideration.Price: $89.67, Change: $+0.63, Percent Change: +0.71%

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First-Quarter Down Payment Hits Lowest Since 2021 as Housing Market Tilts Toward Buyers, Realtor.com Says

First-quarter down payment in the US reached its lowest level since 2021 as the housing market slowly shifts toward more buyer-friendly conditions, News Corp's (NWS, NWSA) Realtor.com said Tuesday.The typical down payment dropped 19% year over year to $23,400 in the March quarter, marking the fourth straight quarterly decrease and the lowest level recorded since 2021, according to the online real estate portal."Down payments are falling as the housing market slowly tilts toward buyers," Realtor.com Senior Economist Hannah Jones said. "High prices and borrowing costs continue to test affordability, and while conditions are improving, some of the buyers re-entering the market are doing so via government-backed programs that have lower down payment requirements."In terms of key US regions, the softening in down payments was most pronounced in markets where inventory has recovered most fully and home prices have cooled most, with the South and West seeing the biggest drops. The Northeast continues to be the most competitive market, according to the report.Down payments in the US peaked at $32,700 in the second quarter of 2024 following years of soaring house prices and intense competition, but the pandemic-era highs are now steadily unwinding. Down payments reached their first-quarter high in 2025 with a median of $28,900 and an average of 14% of the purchase price before steadily easing lower, the report showed.The buyer pool is expanding with marginal improvement in affordability, though many are stretching their finances and increasingly relying on government-backed loan programs to finalize their deals, according to the report.Together, Federal Housing Administration and Veterans Affairs loans now account for more than a third of all purchase mortgages, Realtor.com said."Government-backed programs are serving as a critical pressure valve, keeping the door to homeownership open for buyers who might otherwise be shut out entirely," Jones said. "The growing reliance on FHA and VA financing also reflects how much the conventional path to homeownership has narrowed for buyers without significant cash reserves."Price: $30.22, Change: $-0.01, Percent Change: -0.03%

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