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The Cleveland-based bank slashed its dividend and reported a $171 million loss for the first quarter. Its shares sank almost 28 percent by early afternoon.

The nation's 10th-largest bank said it has secured $985 million from New York-based Corsair Capital LLC, which has experience with troubled financial institutions internationally. The rest of the money will come from other investors, including current institutional shareholders.

National City also is cutting its dividend to 1 cent per share from 21 cents per share to help strengthen its capital position.

Earlier this month, the Wall Street Journal reported that Fifth Third Bancorp had emerged as a possible buyer for National City Corp., a union that would combine Kentucky's two largest banks.

AT&T's earnings met Wall Street's forecast while McDonald's and DuPont reported stronger-than-expected numbers. But DuPont said a U.S. slowdown will offset growth abroad and McDonald's said an important metric of its sales showed a decline for March. All three companies are among the 30 stocks that make up the Dow.

The comments gave trading a cautious tone. With hundreds of companies still to report results, investors are anxious over what the figures might say about the prospects for the economy.

"We've melted here, but it isn't a plunge," said Art Hogan, chief market analyst at Jefferies & Co. "We're in a day-to-day assessment of how good earnings season is, and right now there's more bad news than good news - the parade has been less positive than we've anticipated."

Investors appeared little moved by news of continued weakness in the housing sector. Sales of existing homes fell 2 percent in March to a seasonally adjusted annual rate of 4.93 million units, while the median sales price dropped for a seventh straight month. The National Association of Realtors also said sales rose in the Northeast and West but fell in the Midwest and South.

The fast food behemoth easily topped Wall Street forecasts Tuesday when executives said it earned $946.1 million, or 81 cents per share, during the January-to-March period. That's up from $762.4 million, or 62 cents per share, during the same period last year.

Revenue climbed 6 percent to $5.6 billion.

"I'm confident our global momentum will continue," said Chief Executive Jim Skinner.

Analysts surveyed by Thomson Financial expected a quarterly profit of 70 cents per share on revenue of $5.4 billion.

Crude oil set a record for the sixth day in a row -- closing above $117 a barrel -- after an attack on a tanker in the Middle East rattled investors.

Diesel prices at the pump also struck a record high, of $4.20 a gallon, according to AAA and the Oil Price Information Service. That's sure to add to truckers' costs and drive up the price of food, clothing and other goods.

"You and I are going to pay more," said Bob Costello, chief economist of American Trucking Associations.

Gasoline and diesel prices are expected to keep climbing.

BANK OF AMERICA EARNINGS FALL

Bank of America, the nation's largest retail bank, reported on Monday a 77 percent drop in first-quarter earnings. It quintupled the money it set aside for loans that go sour, and hinted that consumer weakness and the housing slump means that the economy will not get better for some time. Bank of America's shares dropped 95 cents, or about 2.5 percent, to $37.61. Its write-downs, largely due to more and more people missing payments on their credit cards and home loans, led Bank of America to report a 77 percent decline in first-quarter profit of $1.21 billion, or 23 cents a share, on $17 billion in revenue. That compared with net income of $5.26 billion, or $1.16 a share, a year earlier on $18.16 billion in revenue.

KENTUCKY

CENTRAL BANCSHARES' EARNINGS RISE

Fenske, an attorney by training who has also worked as a forest ranger, was an environmentalist long before hybrid cars such as the Prius hit the market. In the early 1990s, he ran unsuccessfully for the Wisconsin state legislature on a renewable energy platform.

But he recently decided to go one step further and make an environmental statement with his car.

"My decision is a very political decision. I want to get people in this country off their dependency on foreign oil," said Fenske, 48, who lives at the Copper Mountain ski resort near Frisco.

A growing number of buyers feel like Fenske. U.S. registrations of new hybrid vehicles rose 38 percent in 2007 to a record 350,289, according to data released Monday by R.L. Polk & Co., a Southfield-based automotive marketing and research company.

Revenue was $1.4 billion for the year, up 14 percent from the year before. The company no longer has to release its net income, as it has paid out a series of bonds it once held as part of a partnership with Comcast that has since ended.

One of the growth drivers remained high-speed Internet service, which accounted for 21 percent of revenue, up from 19.1 percent of revenue in 2006. Broadband's year-over-year revenue growth rate was 25.2 percent.

Only the company's telephone offering saw a higher year-over-year revenue growth rate -- 77 percent -- but that segment contributed just 6.3 percent of overall revenue.

The company's main revenue generator continued to be basic cable service, which accounted for $678.9 million, or 47.2 percent, of overall revenue. Average monthly revenue from a basic customer was $88.85 in 2007, up from $80.53 in 2005.

By delivering earnings and revenue Tuesday that surpassed analysts' estimates, Yahoo added credence to its board's contention that the Sunnyvale-based company is poised for a dramatic turnaround that justifies a higher sales price than Microsoft's initial bid of $44.6 billion, or $31 per share.

But neither the first-quarter results nor Yahoo's outlook for the rest of the year may be compelling enough to cause Microsoft to sweeten its offer.

"This isn't going to make Microsoft come and out offer $35," predicted Canaccord Adams analyst Colin Gillis.

That leaves the rivals at an impasse, just as they have been since Microsoft stunned Yahoo with its unsolicited takeover attempt nearly three months ago.

The dollar's drop to a record low Tuesday against the euro helped draw more funds from investors who see commodities such as oil as a hedge against inflation and a falling dollar. A weaker greenback also makes oil cheaper for investors overseas.

"The bulls are certainly in control of the oil market right now," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "The dollar continues to face a lot of pressure, it is likely to further weaken and that will continue to underpin prices."

Many analysts expect the Federal Reserve to cut interest rates further this year to try to shore up the ailing U.S. economy, a move that would likely further weaken the dollar.

Light, sweet crude for June delivery fell 7 cents to $118.00 in electronic trading on the New York Mercantile Exchange by midmorning in Singapore.

The euro rose as high as $1.6018, more than a penny above the $1.5916 it bought late Monday. The 15-nation currency, which was introduced in 1999, has traded as low as 82 cents. It has surged recently, rising 20 cents against the dollar in just five months and 10 cents in just two months.

The euro hit its last record of $1.5982 Thursday. It dropped back Friday after a Wall Street rally generated optimism that the worst of the U.S. credit crunch may be over, but the euro rose again Monday when Bank of America's first-quarter earnings fell short of expectations.

The dollar's slump is a boon for U.S. companies that rely heavily on exports, but it's the bane of travelers as worldwide inflation rises, air fares climb and prices rise in dollar terms for everything from beer in Munich to fine wine in Paris to gondola rides in Venice.

Tuesday's remarks by Yves Mersch in the Financial Times Deutschland and comments made by Christian Noyer to France's RTL radio showed the governing council of the ECB is committed get euro zone inflation back around 2 percent, below the current 3.6 percent it is at now.

The disclosure came as formal contract negotiations between SAG and Hollywood studios entered their second week.

The person, who was not authorized to speak publicly about the deals and requested anonymity, said representatives of the productions have signed guaranteed completion contracts with the guild that clear the way for film companies to raise financing and start work.

The Alliance of Motion Picture and Television Producers, which represents studios, declined to comment on the deals.

Both sides have been tightlipped about their formal contract discussions, which began April 15. They are trying to avoid a replay of the 100-day strike by Hollywood writers.