NEW YORK — Lehman Brothers Holdings Inc., the nation's fourth-largest investment bank, said Tuesday robust stock trading and buyout business pushed second-quarter profit up 27 percent, in what may be a harbinger for other brokerage earnings due this week.

Gains from stock trading amid a record run on Wall Street, as well as fees charged to companies for advice on takeover deals, helped drive Lehman's business during the quarter. This tempered a slump in its fixed-income business, particularly from the sagging performance of mortgage-back securities hurt by a squeeze in subprime loans.

This bodes well for other Wall Street firms — Goldman Sachs Group Inc. and Bear Stearns Cos. post results on Thursday. They are expected to show that sharp international growth, trading and investment banking offset any weak areas — a key as financial institutions face the possibility that interest rates will not fall this year.

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BUSH PUSHES REPUBLICANS ON IMMIGRATION OVERHAUL

WASHINGTON — President Bush pressed divided Republicans on Tuesday to support him on immigration overhaul, saying "status quo is unacceptable."

In a rare visit to the Capitol for lunch with the Senate's GOP membership, Bush said he recognized that immigration was an emotional issue and that many do not agree with him. Still, he said, "Now is the time to get it done."

The measure supported by the White House, which legalizes up to 12 million unlawful immigrants and tightens border security, stalled last week in the face of broad Republican opposition.

Bush's personal effort to salvage the derailed bill came as key lawmakers reached for a deal that could quickly revive the measure. He needs to change enough minds among GOP senators to push through a top domestic priority.

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MORE OVERSIGHT OF HUMAN TISSUE INDUSTRY SOUGHT

WASHINGTON — A federal agency's review of the billion-dollar body parts industry calls for more inspections, but experts in the field say it ignores the problems that led to two recent scares involving human tissue destined for transplant.

An internal task force report Tuesday recommends the Food and Drug Administration require more extensive tracking of non-organ tissue such as tendons, bones and heart valves — from the cadavers where they are retrieved to the patients where they are implanted.

The in-house review also advocated what is essentially the doubling of FDA inspections of companies that remove and handle body parts.

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OIL, GAS FUTURES FALL

NEW YORK — Oil and gasoline futures fell Tuesday as traders took profits from the previous session's rally and priced in expectations that a government report Wednesday will show increases in gas inventories and refinery utilization.

Traders largely shrugged off an International Energy Agency report that raised the prospect of a global oil crunch this year due to higher-than-expected demand and below-par supply from the Organization of Petroleum Exporting Countries and other producers.

At the pump, gasoline prices accelerated their retreat from late May's record of $3.227 a gallon. The average national price of a gallon of gas fell 1.5 cents overnight to $3.066 a gallon.

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FORD FUELS SPECULATION ON JAGUAR, LAND ROVER SALE

LONDON — Ford Motor Co. said Tuesday it was reviewing its position on Jaguar and Land Rover, fueling speculation that the Dearborn-based company is getting closer to selling them.

John Gardiner, a spokesman for Ford's Premier Automotive Group, which includes the two brands plus Volvo, said Ford has been reviewing all of its operations for a year. The company has said in the past that a sale of the two brands is possible.

Ford may be more interested in selling the two British brands now because the U.S. automotive market has softened in recent months and Ford may be in need of more cash, said David Cole, chairman of the Center for Automotive Research in Ann Arbor.

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CHINESE INFLATION AT HIGHEST LEVEL IN 2 YEARS

BEIJING — Chinese inflation rose to its highest level in more than two years in May, driven by soaring prices for pork and other food, according to government figures released Tuesday.

The government has been worried that China's sizzling economy, growing at an 11 percent pace this year, could accelerate politically dangerous inflation. The official inflation target is 3 percent.

Consumer prices rose by 3.4 percent in May, the National Bureau of Statistics said. That was the highest rate since prices rose 3.9 percent in February 2005.

Food prices jumped 8.3 percent from a year ago, up from April's 7.1 percent, the bureau reported.

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BLOCKBUSTER OFFERS DEAL ON ONLINE ORDERS

DALLAS — Blockbuster Inc. is offering lower-priced plans for online movie rentals as it competes with Netflix Inc. in a market that some analysts believe could grow more than 40 percent this year.

Blockbuster said Tuesday it would cut prices $1 a month for customers who order movies only online and not at stores.

Analysts said Netflix could be forced to drop prices, which would reduce its profits.

Shares of Netflix tumbled $1.85, or 8.4 percent, to $20.08, while Blockbuster shares slipped 12 cents, or 3 percent, to $3.95.

Blockbuster said it would offer a plan letting customers place online orders to rent three movies at a time for $16.99, a buck cheaper than its most popular offering, called "Total Access." The movies are mailed to the customer.

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MIDWEST AIR WON'T MEET EARNINGS EXPECTATIONS

MILWAUKEE — Midwest Air Group Inc. said Tuesday it won't meet analysts' earnings expectations for the second quarter and full-year results will suffer as a result of lower airfares and longer flights.

Rival AirTran Holdings Inc. said the move shows Midwest should reconsider its latest offer, which the Milwaukee-based airline has steadfastly rejected.

Midwest, operator of Midwest Airlines and Midwest Connect, said it would announce revised guidance for the full year soon. It had expected earnings per share of $1.30 to $1.50. But that was revised in April from its first estimate of $1.70 per share, due to what Midwest said was a bumpy first quarter with a series of storms disrupting air travel.

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COURT UPHOLDS ANHEUSER-BUSCH TRADEMARKS

BRUSSELS, Belgium — A European Union high court upheld several Anheuser-Busch trademarks and dismissed a challenge from Czech brewing rival Budvar on Tuesday, the latest ruling in a century of disputes relating to the name "Budweiser."

Budejovicky Budvar NP asked the court to overturn 12 EU trademark applications of Anheuser-Busch Cos., claiming they infringe on Budvar's right under French law to the term Budweiser.

The trademarks cover promotional goods including clothing, beermats, neon signs and glassware.