Exchange traded funds that invest in consumer discretionary stocks shook off a 6% decline in Marriott International (NYSE: MAR) shares Thursday after the sector ETFs recently hit an all-time high.
Marriott shares were under pressure following quarterly earnings in line with expectations. However, Wall Street was disappointed in the hotel chain’s outlook for the rest of 2011.
Marriott was expected to report a 37-cent uptick in earnings per share, according to analysts, while revenue was seen rising 8%, according to a preview from TheStreet.com.
“While the second quarter was generally in line, we believe the guidance reduction suggests continuing difficulty forecasting in a volatile worldwide macro environment and is bearish for the shares in the near term,” said Jefferies analysts in a note on Marriott earnings Thursday. For the full year, earnings guidance was reduced by 2 cents at the high end and is now between $1.35 and $1.43 a share, they wrote.