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Good afternoon. Here's what you should know today, Oct. 8: | |
- Israel is still battling intruders after Hamas's cross-border attack.
- Efforts to pick a new House speaker just became more urgent.
- Investors are placing hope in a new earnings season.
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| Thanks for reading What's News! Look for the 🔐 to enjoy a free article on us—and share the link with a friend (or forward the whole newsletter!). | |
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 | | Israeli security forces walk by a destroyed police station that had been seized by Hamas militants in the southern city of Sderot, close to the Gaza border. PHOTO: ATEF SAFADI/SHUTTERSTOCK | | |
1. Israel's mission after the Hamas assault: Retake control, secure the border. | |
| Roughly 36 hours after Hamas militants flooded into Israel from Gaza, Israeli troops were still engaged today in fierce fighting to regain control of territory in the country's south and struggling to seal the border to further incursions (🔐read for free). More than 600 Israelis and at least 370 Palestinians have been killed since the fighting began Saturday, according to authorities. Hamas says it is holding dozens of Israeli hostages spread across Gaza, and Israel's military says it expects its conflict with the Palestinian group to be "a long, long haul." | |
| Conflict Widens on Second Day (Follow Live Updates) Israel Wrestles With Question: How Could This Happen? (Read) 🎥 How the Hamas Attack on Israel Unfolded (Watch) 🎤 Live Q&A on Monday: What Is Happening in Israel? (Join) | |
2. The attack on Israel adds urgency to GOP efforts to elect a new House speaker. | |
| House Republicans will try to decide in the coming days who should take over from ousted Speaker Kevin McCarthy, aiming to put a tumultuous chapter behind them and get back to work as critical deadlines loom. They head into a conference vote as soon as Wednesday with two strong candidates and no clear favorite between House Majority Leader Steve Scalise and Trump-backed Rep. Jim Jordan. Lawmakers have emphasized that a delay in filling the role could slow any efforts to help Israel. | |
3. The U.S. economy has a secret weapon: seniors with money to spend. | |
| Why has consumer spending proved so resilient as the Federal Reserve has raised interest rates? One important reason: Consumers are getting older. People in the 65-and-over age group make up a greater share of the population now than at any other time on record. They're less reliant on borrowing and less at risk of layoffs than other consumers, making them a spending force to be reckoned with. Younger Americans aren't so cushioned from high interest rates, and so could stand to benefit if inflation data due this week suggests the Fed has room to ease off in its fight against rising prices. | |
| The Outlook: Big-Company Bankruptcies Hang Over Economy (Read) | |
4. Investors are counting on earnings season to revive stocks. | |
| For much of 2023, U.S. stocks roared higher despite lackluster corporate profits. But an accelerating selloff in bonds has pushed longer-term yields near their highest levels in more than a decade, denting enthusiasm for stocks. An expectation that the Fed will keep interest rates higher for longer is adding to investors' anxieties. In the coming days, they'll be reviewing results from some of the country's biggest banks, including JPMorgan Chase and Citigroup, as well as PepsiCo and Walgreens Boots Alliance. | |
| Wall Street Isn't Sure It Can Handle All of Washington's Bonds (Read) | |
5. A divided West Maui reopens to tourists. | |
| Starting today, the area is officially open again, two months after a firestorm incinerated the town of Lahaina and killed at least 98 people. Leaders in Hawaii want to slowly welcome visitors crucial to the economy, but some residents say it is too soon. | |
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🎙️ Get a better grip on the markets with Take On the Week, WSJ's new podcast. | |
| How will big U.S. banks respond to rising government bond yields? WSJ's Take On the Week looks ahead to this week's earnings reports from three of the biggest banks—Citigroup, Wells Fargo and JPMorgan Chase—to examine what these economic shifts mean for the way banks are handling your money. | |
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