ADRs in Focus: Emerging markets airlines slide

Light, sweet crude for August delivery soared to an all-time high of $147.27 a barrel earlier in the day, before pulling back slightly to trade at $145.61, up $3.96 on the Nymex.

ADR stands for American Depositary Receipt, which is a security designed to allow U.S. investors to trade shares of companies based overseas.

Calyon Securities analyst Ray Neidl cited worry on Latin American airlines, citing "higher fuel costs and their decreasing ability to pass through these costs."

"We are still positively inclined toward this segment of the airline sector, though cautiously, as fuel costs remain unpredictable and the possibility of an economic slowdown in the region exists as a result of the slowdown in the U.S. economy," Neidl said in a note to clients.

He upgraded TAM SA to "Buy" from "Add," but lowered his price target to $25 from $27. The company may surprise Wall Street with positive second-quarter earnings, he said. Shares of the Brazilian carrier fell 40 cents, or 2.3 percent, to $16.86.

Neidl kept an "Add" rating on GOL Linhas Areas Inteligentes SA, but slashed his price target to $12 from $18 and said he expects the company to report a "significant loss" for the second quarter. Shares of the Brazilian company fell 41 cents, or 4.5 percent, to $8.64.

Neidl kept a "Buy" rating on LAN Airlines SA with a $19 price target, and said he expects second-quarter earnings to meet Wall Street's expectations. Shares of the Chile-based company slipped 36 cents, or 3.8 percent, to $9.13.

Meanwhile, shares of China Southern Airlines Co. fell 58 cents, or 3 percent, to $18.50, and shares of China Eastern Airlines Corp. fell 7 cents to $29.36.

The Bank of New York Mellon Emerging Markets ADR Index--which includes shares of companies based in China, Chile, Brazil and more--lost 3.48 points to 327.72.