ADRs in Focus: Latin American airlines decline

Light, sweet crude for August delivery rose as high as $142.93 a barrel on the New York Mercantile Exchange before pulling back slightly to trade up $2.80 at $142.44.

That helped send Latin American airlines lower. Airline shares often trade opposite the price of oil because fuel represents one of the industry's biggest costs.

Chile's LAN Airlines SA lost 36 cents, or 3.5 percent, to $10.07 despite an upgrade from Citi Investment Research of shares to "Hold" from "Sell." Stephen Trent said the ADR appears to be more reasonably priced, though he still expects little from the stock.

Brazil's GOL Linhas Aereas Inteligentes SA gave up 12 cents to $11.19. The ADR hit a four-year low of $10.92 earlier in the session.

Aircraft manufacturer Empresa Brasileira de Aeronautica SA lost $1.08, or 3.9 percent, to $26.83 after touching a four-year low of $26.53.

TAM SA, also based in Brazil, bucked the trend, adding 13 cents to $18.88.

Broader ADR markets were lower as U.S. indexes retreated. The Bank of New York Latin America ADR Index fell one point to 454.49.

The Bank of New York Composite ADR Index gave up 0.53 points to 165.82. ADRs, or American Depositary Receipts, are securities designed to allow U.S. investors to trade shares of companies based overseas.