AP - Ford Motor Co. posted a strong second-quarter profit Friday but trimmed its U.S. sales forecast and predicted weaker results in the second half as the economy slowly recovers.

AP - North Korea inflamed already-high tensions in the region over the deadly sinking of a South Korean warship by threatening the United States and South Korea on Friday with a "physical response" if they carry out military drills as planned on Sunday. The U.S. refused to back down, saying any new talks with the North are unlikely in the current standoff.