IBT Staff Reporter

U.S. stocks mostly edged higher on Tuesday after growing optimism the Federal Reserve will soon make another cut in interest rates offset warnings from two leading retailers and weak economic data.

The premiere of Ken Burns' new documentary series The War brought in 7.3 million viewers Sunday night, PBS said.

Amazon.com Inc launched an early version of its highly anticipated digital music download store, which is seen as a potential rival to Apple Inc's dominant iTunes system.

An earnings warning from Lowe's Cos Inc and a slashed September sales forecast from Target Corp hammered retail stocks on Tuesday as skittish consumers rein in spending, fueling concerns that the holiday shopping season could be the weakest in years.

The cries of tens of thousands of people led by Buddhist monks, who are staging anti-junta protest rallies in Myanmar at the risk of a government crackdown, has reached the ears of the US President George W. Bush, who is expected to take up the issue in his speech Tuesday to the General Assembly and urge the U.N. to uphold its pledge to fight for freedom and impose new sanctions against the repressive military regime in Myanmar.

Japan's parliament on Tuesday installed Yasuo Fukuda as the new prime minister of the world's second largest economy, setting the stage for the seasoned moderate to form a cabinet that must confront a feisty opposition keen to force an election.

American investors may soon earn more of their retirement savings in faraway places as nearly half of all U.S. fund managers predict new geographic markets will be their biggest sources of income, a new survey shows.

The U.S. Treasury on Monday issued the first of a series of papers aimed at jump-starting debate over Social Security reform, saying the system faced a present-value deficit of $13.6 trillion.

Negotiators for the United Auto Workers union and General Motors Corp have resumed bargaining on Tuesday while more than 73,000 factory workers participated in the second day of the first national strike against the automaker in more than 30 years.

Satellite television operator EchoStar Communications Corp said it may spin off its technology assets and announced plans to buy Sling Media, the maker of a device that relays TV programs to laptops and cell phones.

Hedge fund Appaloosa Management LP said in a U.S. regulatory filing on Tuesday that its offer for bankrupt auto parts supplier Dana Corp could be conditioned on there not being a strike at any of the major U.S. automakers.

The pace of existing home sales fell sharply in August to a 5.5 million-unit annual rate while single-family home inventories swelled to an 18-year high, the National Association of Realtors said on Tuesday.

Royal Bank of Scotland Plc said on Tuesday it will establish a new global banking centre in Amsterdam if its joint bid for Dutch bank ABN AMRO is successful.

Britain's government has appointed U.S. investment bank Goldman Sachs to advise it on Northern Rock, a source close to the Treasury said, as the stricken bank told politicians its business was sound.

Shares in China Construction Bank (CCB) closed 32 percent higher on their Shanghai debut on Tuesday, beating other big Chinese lenders' first-day gains and boosting hopes for future large Shanghai share offers.

The London Stock Exchange said in a trading statement on Tuesday it would report very strong first-half results and was very close to completing its merger with Borsa Italiana.

Amazon.com Inc launched an early version of its highly anticipated digital music download store, which is seen as a potential rival to Apple Inc's dominant iTunes system.

Austrian oil and gas group OMV upped the ante in its battle to take over Hungary's MOL on Tuesday, telling MOL shareholders it would pay $20 billion if they overruled board opposition.

Microsoft Corp began selling Halo 3 on Tuesday, hoping the acclaimed alien shooter game will widen its lead over Sony Corp in the battle for industry dominance.

Yasuo Fukuda, a seasoned moderate lawmaker, was chosen Japan's prime minister on Tuesday, then tapped veteran ministers from his predecessor's cabinet to confront a resurgent opposition keen to force an election.

The dollar steadied above the previous day's 15-year troughs against a basket of currencies on Tuesday, as investors awaited U.S. data to determine how deeply the global credit crunch has affected the economy.

Home builder Lennar Corp posted a quarterly loss on Tuesday weighed down by charges and write-offs in a deteriorating housing market, and said it will cut more jobs in the fourth quarter.

Japanese markets mostly failed to react to the appointment of Yasuo Fukuda as leader of the Liberal Democratic Party on Sunday. The appointment opens the way for Fukuda to take over the reins of departing Prime Minister Shinzo Abe.

Treasury bonds rose on Monday, and yields dropped as investors looked to lock in gains from last week's strong stock market showing.

Nationstar Mortgage, the subprime unit of Fortress Investment Group LLC, said it is no longer accepting new loan applications from brokers, a signal the lender is winding down operations.

Singapore lender DBS Group's chief executive resigned on Monday, after a run of bad news battered the company's share price, leaving an unfulfilled quest to make the bank a big Asian player.

The head of Wal-Mart Store Inc's India operations said on Monday that the retailer is confronting issues securing real estate and talent, but it remains reasonably confident it can open its first cash-and-carry store in the country by the end of 2008.

Investors cashed out of China Eastern Airlines on Monday, sparking a 10.5 percent drop in its shares as hopes waned that Cathay Pacific Airways would unveil an alliance with Air China to buy part of the Shanghai-based carrier.

Countrywide Financial Corp, the largest U.S. mortgage lender, said on Monday it expects to modify terms on nearly 25,000 home loans this year to help people avoid foreclosures.