Stock Market Update

[BRIEFING.COM] The major averages trade in a stable range, firmly higher.

Marriott (MAR 347.44, -25.39, -6.81%) is one of the worst-performing S&P 500 components after reporting mixed Q2 results this morning. Adjusted EPS increased 20% year-over-year to $3.19, comfortably ahead of expectations, while revenue rose 4.8% to $7.07 billion but fell short. Marriott also raised its FY26 outlook to adjusted EPS of $11.64-$11.81 and worldwide RevPAR growth of 3.0-3.5%. However, Q3 adjusted EPS guidance of $2.74-$2.82 fell below expectations, even as Marriott expects continued growth across RevPAR, fee revenue, and adjusted EBITDA.

Marriott's Q2 results indicate that underlying lodging demand remains healthy, with U.S. and Canada RevPAR posting the region's strongest growth in 13 quarters and strength extending across brand tiers and customer segments. Although the World Cup contributed to domestic strength, demand also remained solid across non-World Cup markets, and Marriott expects the broad trends that extended into July to continue. Internationally, RevPAR increased across Europe, APEC, Greater China, and the Caribbean and Latin America. However, the steep decline in the Middle East more than offset that growth and pushed overall international RevPAR slightly lower. Double-digit growth in gross fees and adjusted EBITDA highlights Marriott's solid operating performance, while improved economics from its new co-branded card agreements could provide an additional tailwind to fee growth.