SAN FRANCISCO (AP) -- Hewlett-Packard Co. cashed in on rising international demand again in its second quarter, but that performance may not be enough to ease worries about the company's exposure to the ailing U.S. economy as it prepares to digest the second largest acquisition in its 69-year history.

The results released Tuesday came as no surprise because HP provided a snapshot of its latest quarterly numbers and outlook last week when the Palo Alto-based company jolted investors with the news about its plans to buy technology services provider Electronic Data Systems Corp. for $13.2 billion.

The deal has raised concerns that Plano, Texas-based EDS will compound the headaches that HP may be facing if U.S. demand for its personal computers, printers and other products and services remains flat or slumps as consumer struggle to cover high gasoline and food costs while businesses also clamp down on spending.

Among other challenges, HP will likely have to make substantial layoffs from a combined work force of 210,000 employees while trying to blend two different corporate cultures after the EDS deal closes late this year.

HP is counting on EDS to boost the demand for its services and computers among major companies and government agencies while improving its competitive position against IBM Corp., the leading seller of technology services.

Echoing remarks from a week ago, Hurd assured reporters Tuesday that the acquisition will pay off.

NEW YORK (AP) -- Just in time for the start of the summer driving season: Oil near $130 a barrel and gas getting closer to an average of $4 a gallon.

Crude prices spiked to yet another trading high Tuesday as supply concerns mounted. At filling stations across the country, the national average price for a gallon of regular gasoline touched $3.80 for the first time, having followed oil's spectacular rise.

The June contract for light, sweet crude traded as high as $129.60 on the New York Mercantile Exchange before settling at $129.07, up $2.02 from Monday's record high. The expiration of that contract, which ended with the close of Tuesday's trading, created additional volatility as traders scrambled to lock in positions.

It was the 10th time in the last 12 sessions crude prices have hit trading or closing records, if not both.

The July contract, meanwhile, hit its own new high, trading up to $129.29. It will become what traders call the front-month contract on Wednesday.

"I keep making projections, and they keep turning out to be too low," said Darin Newsom, senior analyst at market analysis provider DTN. "We're already pushing up against $130. If we clear that, there's no reason to believe crude oil can't get to $140."

Oil's march to new highs coincided with the Labor Department's report of an bigger-than-expected rise last