IBT Staff Reporter

Shares of pharmaceutical giant Merck put pressure on the Dow, after losing 10 percent as the Food and Drug Administration rejected its cholesterol drug Cordaptive, one of the key drugs in its pipeline.

Oil giant BP said on Tuesday that its profits had risen 48 per cent to $6,588 million in the first quarter of 2008. The company said that its net cash from operating activities in the quarter was $10.9 billion, up from $8.0 billion one year ago.

Relatives of a woman and her son who died after receiving treatment with the drug Heparin made by Baxter International Inc. urged a congressional subcommittee Tuesday to protect patients from unsafe drugs.

Mastercard Inc., the world's second largest credit-card company, said its earnings more than doubled in the first three months of 2008 on higher use outside the US, helping the company to surpass its larger rival Visa Inc.

Gold futures fell sharply Tuesday, as the U.S. dollar strengthened against major currencies and declining oil prices pressured investment demand for the precious metal.

McGraw-Hill Cos Inc said on Tuesday quarterly earnings fell 44 percent on a slump in its Standard & Poor's ratings agency, which critics accuse of helping to inflate the credit bubble. The company has also lowered its full-year forecast.

Crude futures fell more than $3 a barrel on Tuesday as the North Sea pipeline restarted operations and the dollar gained strength versus the euro.

Dollar paired gains due to profit booking after a three day rally ahead of the FOMC meet.

Sterling rose against the dollar yesterday as the traders took clue from the slightly brighter stock market sentiment.

Treasuries rose on Monday in light trading as bond investors expected a Federal Reserve cut in the benchmark interest rate later in the week.

Honeywell International Inc. a diversified technology and manufacturing company said on Monday that it will buy Metrologic Instruments Inc. for $720 million and the company will merge with Honeywell's Automation and Control Solution business.

Merck & Co. reported late Monday the U.S. Food and Drug Administration didn't approve the MK-0524A treatment or Cordaptive a cholesterol drug.

The dollar rose slightly against the euro and yen on Tuesday in Tokyo ahead of Wednesday's meeting of the Federal Open Market Committee.

General Motors Corp., citing rising gas prices and a slowing economy, said on Monday it will cut back its production of large trucks and sport-utility vehicles at several plants, resulting in about 3,500 hourly employee job cuts.

A top Iranian judiciary official has warned against the destructive cultural and social consequences of importing Barbie dolls and other Western toys.

Four countries have been given the go ahead from a newly issued UN resolution to chase and thwart off- would-be Somali pirates from their coasts and in their waters.

Regulatory filings released on Monday showed that a major shareholder in Circuit City Stores Inc has urged the retailer to proceed forward with the proposed buyout offer from Blockbuster Inc.

Shares of Max & Erma's closed 29.5 percent up on Monday as the company announced it agreed to be acquired by G&R Acquisition Inc in a $10.2 million deal.

Visa Inc, the world's largest credit and debit processor, said its second fiscal quarter profit grew 28 percent in its first quarter as a public company as payments and transactions grew across all regions worldwide.

Nigeria's oil output was cut by around half on Monday after Exxon Mobil said all of its oil production in the country has been shut due to a workers' strike, while recent attacks by Niger Delta rebels affected Royal Dutch Shell output.

Intel sealed an alliance deal with maker of supercomputer, Cray Inc, to increase its competitive advantage against Advanced Micro Devices (AMD) which just introduced its first computer brand, early on Monday.

Bank of America Corp, seeking approval to buy the largest U.S. mortgage company, said it would help reduce home foreclosures by modifying or working out hundreds of thousands of mortgage loans to help more than 265,000 customers.

Hospira Inc. said it expects to take pretax charges of about $35 million as it plans to stop close a manufacturing plant in California.

Shares of RadioShack Corp. fell on Monday after the electronics retailer said its first-quarter net income fell worse than expected, dropping 8.7 percent on weaker results from its Sprint Nextel Corp. wireless business.

Sugar declined for the fourth time in New York on speculation of increased sugar output from Brazil flooding the market.

United Airlines and US Airways Group Inc are in advanced merger talks prompted by Continental Airlines Inc's decision this weekend to cancel similar talks with UAL, according to media reports.

Billionaire investor Kirk Kerkorian revealed on Monday that his investment company has accumulated a 4.7 percent stake in Ford Motor Co. shares and will seek to bring its total to 5.6 percent through an offer to buy stock.

U.S. newspaper circulation fell sharply in the six months leading through March, with the exception of the two largest national dailies, USA Today and The Wall Street Journal, as more readers turn to online sites to read the latest news.

Gold futures rose on Monday after crude-oil contract hit a new record, raising the appeal of precious metals as a hedge against inflation.