Reuters - U.S. retailers are expected to post lackluster May sales this week, as consumers spent tax rebate checks on gas and food or used them to reduce debt, rather than buying discretionary items like clothes and jewelry.

AP - Wall Street fell sharply for a second straight day Tuesday as investors grew more worried that the financial sector is still suffering badly from the credit crisis. The Dow Jones industrials, up modestly in earlier trading, fell more than 140 points.

Reuters - Massachusetts authorities sued H&R Block Inc on Tuesday, charging that its mortgage unit discriminated against black and Latino borrowers and escalated a crisis over property foreclosures in the state.

Reuters - Stocks sank to session lows in mid-afternoon trade on Tuesday as shares of Lehman Brothers Holdings Inc extended losses, falling more than 12 percent, as investors feared financial institutions may have to raise more capital.

Reuters - Federal Reserve Chairman Ben Bernanke on Tuesday issued a rare warning on the inflationary risk posed by a weak dollar, but said U.S. interest rates were "well positioned" for an economy facing both price pressures and threats to growth.

Reuters - Lehman Brothers Holdings Inc shares fell on Tuesday to their lowest level since the meltdown of Bear Stearns on concern that Wall Street's smallest surviving brokerage could need to raise more capital.

Reuters - General Motors Corp on Tuesday reported a 30.2 percent fall in May U.S. auto sales on an adjusted basis, led by a 39 percent decline in truck sales.

Reuters - Wachovia Corp ousted its chief executive, sending the bank's shares lower on speculation that loan losses tied to the purchase of a big mortgage lender could widen.

Reuters - General Motors Corp , facing a sinking U.S. market for trucks and SUVs, is expected to unveil steps on Tuesday to conserve cash and cut production of slower-selling models in a bid to shore up a faltering restructuring now in its third year, according to analysts.

Reuters - Lehman Brothers Holdings Inc may raise billions of dollars of fresh capital, suggesting the investment bank will post its first quarterly loss since going public, the Wall Street Journal said on Tuesday, citing sources familiar with the matter.

Reuters - Yahoo Inc executives dismissed a search-advertising deal with Google due to antitrust concerns, one day before Microsoft Corp made its takeover offer earlier this year, according to court documents made public on Monday.

AP - Investors examine the same key economic reports at the start of every month — on manufacturing, the service sector and employment. This week, they'll be looking at these indicators for inflation clues as much as they will for insight into economic growth.