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The U.S. Navy shot down anti-ship ballistic missiles on Tuesday launched by incoming Iran-backed Houthi missiles in the Red Sea, signaling a significant escalation in the region, a senior defense official told Fox News. 

The Navy engaged three ballistic missiles provided to Yemen’s Houthis by Iran. It was the first time the Navy shot down an incoming anti-ship ballistic missile in combat, officials say.

Naval assets, including the USS Laboon and F/A-18 Super Hornets from the Eisenhower Carrier Strike Group, shot down 12 one-way attack drones, three anti-ship ballistic missiles and two land attack missiles fired by the Houthis over a 12-hour period, U.S. Central Command said.

Nearly 100 drones operated by the Houthis have been shot down since Oct. 17. The group has attacked more than 21 international vessels in the region, which has disrupted global shipping.

IRAN CLAIMS TO BE DEVELOPING ‘SMART’ CRUISE MISSILES FOR NAVY ARSENAL 

The Swiss-based Mediterranean Shipping Co. (MSC) said Tuesday that its container ship MSC United VIII was attacked around 12:25 UTC while en route from King Abdullah Port, Saudi Arabia to Karachi, Pakistan. 

‘Currently, all crew are safe with no reported injuries and a thorough assessment of the vessel is being introduced,’ MSC said in a statement. ‘Our first priority remains protecting the lives and safety of our seafarers, and until their safety can be ensured MSC will continue to reroute vessels booked for Suez transit via the Cape of Good Hope.’ 

Attacks in the Red Sea have soared following Israel’s military offensive against Hamas in the Gaza Strip. 

Major shipping companies, including Denmark-based giant Maersk, have been avoiding the Red Sea and sending their ships around Africa and the Cape of Good Hope, adding costs and delays. 

Tuesday’s engagement came after three U.S. service members were injured in Iraq on Christmas Day when terrorists with Kataib Hezbollah, an Iranian proxy, attacked Erbil Air Base. One of those injured was in critical condition. 

In response, U.S. forces conducted airstrikes on three facilities used by Kataib Hezbollah and affiliated groups in Iraq,’ Secretary of Defense Lloyd J. Austin said.

Fox News’ Bradford Betz contributed to this report. 

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JERUSALEM — A leading evangelical Christian leader, the Rev. Johnnie Moore, accused Hamas of pulling the plug on Christmas lights and festivities in Bethlehem, the birthplace of Jesus Christ. This comes as the number of Christians in the city continues to dwindle.

‘It is Hamas, not Israel, which cut off the Christmas lights in Bethlehem. Hamas tried to sabotage Christmas in the Holy Land for the world’s 2 billion Christians. Jesus is the prince of peace. Hamas hates peace,’ Moore, who is the president of the Congress of Christian Leaders, told Fox News Digital.

The U.S. government and the European Union have classified Hamas as a foreign terrorist organization.

Moore added, ‘Instead of taking a page from Hamas by further politicizing religion, the Palestinian leadership in Ramallah and in Bethlehem should have defied Hamas’ hate by having the biggest celebration they could imagine to spread the message of the Prince of Peace, Jesus … from Bethlehem.’

He continued, ‘But, that’s fine. One only has to drive a mile to Jerusalem where Christmas is alive and well. Jerusalem is alive with holiday celebrations because Israel is, even now, fiercely protecting its sanctity during this time of terror and war. Or, if you want a dose of hope that peace is not only possible but will come, then drive up north to beautiful Haifa. It is a city where Jews, Christians and Muslims live in peace with one another and not only side-by-side but by sharing their lives, joys and sorrows together.’

Palestinian Christian leaders said during the war that celebrations would not unfold in the West Bank, where Bethlehem is located. Many Israelis refer to the West Bank by its biblical name Judea and Samaria.

While the number of Christians in Middle East countries has plummeted, Israel continues to experience growth of its minority Christian population. 

According to newly released data from Israel’s Central Bureau of Statistics, roughly 187,900 Christians live in Israel, which is a 1.3% rate of growth when contrasted with last year’s statistics. Israel’s current population is approximately 9.795 million people and is expected to soar past 10 million in 2024.

Yet for Bethlehem, things aren’t as rosy. In 2016, the National Catholic Reporter wrote that Bethlehem and its surrounding villages had a Christian population of 86% in 1950. In 2016, the paper reported, the number of Christians sunk to a mere 12%. According to the National Catholic Reporter, there were just 11,000 Christians in Bethlehem.

In 2023, an estimated 10,000 Christians lived in Jesus’ birthplace among a total Bethlehem population of roughly 75,500 residents.

IRAN PROXIES ENGAGED IN ‘INVISIBLE JIHAD’ AGAINST CHRISTIANS IN MIDDLE EAST, REPORT WARNS 

The Rev. Petra Heldt, a leading Christian scholar who has lived in Israel for 40 years, told Fox News Digital that she pins the blame on the Palestinian Authority (PA), which rules over Bethlehem, for the lack of Christmas festivities.

‘The PA ordered the demolition of Christmas decorations in Bethlehem. This came in the wake of the statements of the heads of churches in Jordan (Greek Orthodox, Anglican and Catholic; they have churches in Gaza) on Dec. 1. The statement is written in the spirit of Hamas, if not dictated by Hamas. The heads of churches are hostages of Hamas,’ Heldt said.

She added, ‘In Jerusalem, the Orthodox and the Catholics do not take their statements too seriously. For instance, yesterday the Catholic Church and the International Christian Embassy joined forces in a joyful open Christmas sing-along in Mamilla Mall. There is a huge Christmas tree in front of the YMCA in King David Street.’

The rapid decline of the Christian population in Bethlehem under the rule of the Muslim-majority Palestinian Authority has been the subject of some news reporting over the last decade. 

‘There are no reliable figures for the numbers of Christians in Bethlehem,’ Heldt said. ‘The numbers are extremely low in comparison to 1993, before [the Oslo Accords established a peace framework between Israel and the Palestinian leadership]. Conservative estimates speak of 5% of Christians in Bethlehem as [contrasted] to some 90-plus percent before 1993. The hardship for Christians in Bethlehem is beyond words. Fear, threats and intimidation is the norm, not because of Israel, because of the PA.’ 

Yet, some dissenting voices suggested Israel’s response via its declaration of war on Hamas in self-defense to the jihadi movement’s Hamas’ massacre of 1,200 people, including more than 30 Americans, on Oct. 7 is why Christian leaders canceled Christmas in Bethlehem.

The Rev. Dr. Jack Sara, the general secretary of the Middle East and North Africa Evangelical Alliance, told Fox News Digital, ‘Sadly, this is not the first time that Palestinian Christians have decided to cancel all the festivities in Bethlehem. It was done before, during the first intifada and second intifada, and now.’

Intifada is an Arabic word that means ‘shaking off’ and has been frequently interpreted as ‘uprising’ to describe violent Palestinian protests against Israel in the disputed West Bank territory in 1987. A second intifada erupted in 2000 with Palestinian suicide bombing attacks against Jews in Israel.

Sara said about the cancelation of Christmas festivities in Bethlehem: ‘The reasons are obvious. How can Christians celebrate when their own people are going through such tragedy? It’s tragedy after tragedy. We lament the killing of all civilians, including those who fell on the 7th of October. But what followed that is also very tragic and makes us lament more innocent lives, over 20,000 now, over 1.5 million refugees; and, in addition, even our Christian community in Gaza is struggling to survive because of the war on Gaza.’ The 20,000 deaths are numbers provided by the Hamas-run ministry of health.

Israel’s government and many Mideast experts reject the number of 1.5 million Palestinian refugees because of an allegedly biased and antiquated U.N. definition of what constitutes a Palestinian refugee.

In contrast to other standard definitions of a refugee that refer to a person (and not his or her descendants) who has fled a conflict zone, the United Nations Relief and Works Agency (UNRWA) says that descendants of a Palestinian refugee who were displaced during Israel’s War of Independence in 1947-1949 warrants refugee status.

FAITH GROUP TO MARCH ON WASHINGTON TO RAISE AWARENESS FOR RELIGIOUS PERSECUTION 

When asked about the demise of Christian life in Bethlehem, Sara, who runs a Bible college in Bethlehem, said, ‘True, but the numbers were higher before 1948 and before 1967. I don’t believe it’s related to the Oslo agreements, the Christians’ numbers dwindled always, even in what we call ‘better time,’ meaning no escalation of the conflict.’

He added, ‘Christians have had families immigrate or leave the country since 1948, so they have relatives all over the world and that connection makes it easier for them to immigrate. Christians in general, like anyone else, fear for their children’s future living in a conflict zone, under occupation, so they opt to find a safer place with no fear of uninvited violence.’

Fox News Digital sent numerous press queries to the Latin Patriarchate of Jerusalem and the Bethlehem municipality for comment.

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JOHANNESBURG – New misery on a biblical scale has been forced upon the people of Sudan this week as the Biden administration is accused by some of standing ‘idle.’ Amid the war, Russia’s Wagner Group continues to mine and export Sudanese gold to finance the Kremlin’s war against Ukraine.

Rebel militia from the Rapid Support Force or RSF, are terrorizing residents and looting everything they can lay their hands on in the regional capital of Wad Madina, according to eyewitnesses who have talked to Fox News Digital.  

At least a quarter of million people have fled the area in the past few days, on top of the six million who have already had to quit their homes, according to U.N. sources.

Many of these have only recently run from fighting in the capital, Khartoum, to a place they thought they’d be safe. 

‘This is a terrible and traumatic turn of events,’ Mathilde Vu, advocacy manager for Sudan for the Norwegian Refugee Council, told Fox News Digital. ‘Wad Madani has been a safe haven for 84,000 people who fled Khartoum just a few months back.’

‘Many of them have lost everything already: their homes, their assets, sometimes even their relatives. Now they are living this nightmare again – only this time, with even less resources and abilities to flee.’

‘Sudan is a state that has collapsed,’ intelligence analyst Jasmine Opperman told Fox News Digital.

Secretary of State Antony Blinken earlier this month accused the two sides in Sudan’s conflict, the government’s Sudanese Armed Forces (SAF), and the rebel Rapid Support Forces (RSF) of war crimes, and singled out the RSF for committing ‘crimes against humanity and ethnic cleansing.’

Both sides, he added, ‘have unleashed horrific violence, death and destruction across Sudan.’

‘Across Sudan,’ Blinken continued, ‘the RSF and allied militias have terrorized women and girls through sexual violence, attacking them in their homes, kidnapping them from the streets, or targeting those trying to flee. In haunting echoes of the genocide that began almost 20 years ago in Darfur, we have seen an explosion of targeted violence against some of the same survivors’ communities.’

Over 12,000 have been killed since the conflict began April 15, according to the U.N. Office for the Coordination of Humanitarian Affairs (OCHA). 

In addition, a State Department spokesperson told Fox News Digital, Sudan has ‘one of the world’s largest displacement crises.’

‘About 5.3 million people have been displaced within Sudan,’ OCHA stated this past week, citing the International Organization for Migration Displacement Tracking Matrix. It added that about 1.3 million people crossed into neighboring countries.

‘Achieving a sustainable solution requires ending violence and resuming a civilian-owned political process to form a civilian government and restore Sudan’s democratic transition,’ the State Department spokesperson continued. ‘Our message is clear and consistent: The United States and our regional and international partners are unified in calling for the parties to immediately end the fighting in Sudan, and for the SAF and the RSF to silence the guns.’

The message may be clear, but critics say it is not being delivered with sufficient persuasion.

‘It is difficult to end such a war unless a powerful regional or international force would intervene directly,’ Walid Phares told Fox News Digital. Phares is a Washington-based foreign policy expert and secretary general of the Transatlantic Parliamentary Group. He is the author of 15 books, including ‘Iran and Imperialist Republic and U.S. Policy.’  

‘But no neighboring government, Arab country, or international party was willing to partake in such a mission,’ Phares added. 

‘In the era of the Ukraine war, and now since Oct. 7 and the Gaza war, literally all players are focused on their national interest and not peacemaking in a difficult and large country. Sudan is too large and too complex to digest.’  

‘The Biden administration is dealing with too many crises as it is entering its election year. From today’s attacks by the Houthi Iran-backed militia against civilian ships in the Red Sea, to the Ukraine war, to the transfer of power to the Taliban, and last but not least the Gaza War, the Biden administration is perceived as weak and unable to act internationally. Thus regarding Sudan, Washington is idle, vague and seems to not intervene to stop the tragedy,’ Phares said.

Opperman agreed. She told Fox News Digital: ‘Any intervention through peace talks will merely be words on paper. Indeed, a hopeless case. There needs to be a complete rethink beyond the two leaders, the two bullets, now at play. That will take time.’ 

‘What is the United States doing with its sanctions?’ Opperman asked: ‘Its voice, and its influence is diminishing by the day.’ 

Opperman believes the leaders of both warring factions in Sudan ‘have one aspiration, and that is to become president. But we are currently looking at warlords in full force. To talk about an official Sudanese army at this point in time is a joke.’

Sudan researcher Eric Reeves also has little faith that peace talks in Saudi Arabia, in which the U.S. are involved, will bear any fruit. He is concerned that such fruit, and other food and aid, are not getting through to Sudan’s civilians. ‘The convoy routes from Port Sudan (a principal supply corridor) are even more dangerous – and thus less used – than just a few weeks ago,’ Reeves told Fox News Digital. ‘The perfect storm for large-scale famine is visible… and the international community really has not engaged in a useful way. It is an unspeakably grim outlook.’

Enter the Russians, in the shady shape of the Wagner Group, literally a combination of mercenaries and precious metal extractors. 

Phares notes, ‘The Wagner group now seems to have chosen a partner in Sudan, the (rebel) RSF, complicating the situation further.’ 

Opperman added: ‘Wagner cannot be ignored in Sudan.’ The Wagner Group mines gold in Sudan, and exports it, with the proceeds reportedly helping to bankroll its war against Ukraine. Wagner reportedly supports the anti-government RSF and, Opperman told Fox News Digital, wants this African conflict to continue: ‘Wagner will counter any attempt at seeking a democratic consolidation within Sudan, because of the economic profits they are making from the mining industry. Ignoring darkening Sudan will be a pivotal mistake.’

Sudan is a key country for Russian President Vladimir Putin, Rebekah Koffler told Fox News Digital. Koffler is president of Doctrine & Strategy Consulting, and a former Defense Intelligence Agency officer. ‘Moscow views Sudan as the key ‘gate to Africa.’ Gold mining and the establishment of a Red Sea naval base at Port Sudan are top priorities.’

‘Now that Iranian proxies have turned the Red Sea into a battlefield disrupting maritime traffic through the Suez Canal,’ Koffler continued, ‘Putin wants to make sure Russia is positioned well in this geographic choke point.’

‘Putin is not necessarily pulling the strings in Sudan, but Russia is taking advantage of the conflict and is fueling it to some extent, by flowing new weapons, riot gear and fighters, through the Wagner Group.’

‘Wagner is not acting on its own’, claims Koffler. ‘They are a proxy force of the Russian government that directs their activities at the strategic, but not tactical, level. Wagner is effectively executing Putin’s ‘Great Game’ in Africa.’

Meanwhile, many of the ordinary men, women and children of Sudan are homeless – and hungry. ‘The humanitarian appeals for Sudan are largely unfunded,’ the Norwegian Refugee Council’s Vu told Fox News Digital, ‘After nine months of constant violence and displacements, we are reaching the limits. The international solidarity must step up and fund the response.’

Opperman is pessimistic about the future: ‘Sudan, yet again, is repeating its own history and inclination to destroy itself by means of warlords.’

As a solution, Phares believes the U.S. should move firmly, and now. ‘Washington should have at least moved to stop the most recent massacres in West Darfur perpetrated by the old Jihadi Janjaweed, who were responsible – according to the U.N. – of a genocide against Black Africans in 2004-2005,’ he said. ‘The U.S. should lead a peace force, enter Geneina, the capital of Darfur, and establish a safe zone.’ 

However, Phares has reservations: ‘One could believe that short of a massive change in U.S. foreign policy by early 2025, the Sudan conflict will still be raging, and possibly all other tensions in the region as well. One more time, it is a presidential election in the U.S. that could impact Sudan and the world.’ 

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A large Russian landing warship in Crimea was struck by cruise missiles launched by Ukraine overnight, killing at least one person, Russia’s Defense Ministry said Tuesday. 

The landing ship, called Novocherkassk, was hit at a base in the city of Feodosia by plane-launched guided missiles, the ministry said, and footage posted online shows a huge fireball rising into the night sky as a result of the attack. Further explosions detonating could also be seen as well as fires burning.

In addition to the fatality, four others were injured, according to the RIA news agency, Reuters reported.

The ministry added that two Ukrainian fighter jets were destroyed by anti-aircraft fire during the attack which took place at around 2:50 a.m. local time. It is unclear if the anti-aircraft fire caused injuries.

Exact details about the extent of the damage to the ship were not immediately clear. However, Ukrainian Air Force Spokesperson Yuriy Ihnat said he does not think the Novocherkassk will easily be able to resume its typical operations. 

‘We can see how powerful the explosion was, what the detonation was like. After that, it’s very hard for a ship to survive, because this was not a rocket, this is the detonation of munitions,’ he told Radio Free Europe.

Ukraine used cruise missiles in the attack, Ihnat said, according to Reuters. Both Great Britain and France have provided cruise missiles to Kyiv.

A post and an accompanying photo put out by Ukraine’s defense ministry on Tuesday morning claimed the vessel had sunk.  

Ukrainian President Volodymyr Zelenskyy wrote on Telegram that his country contributed to Russia’s submarine fleet in damaging the ship.

‘The occupiers will not have a single peaceful place in Ukraine,’ he said.

Reuters and the Associated Press contributed to this report.

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Iran has boosted its production of highly enriched uranium after a slowdown earlier this year, the U.N.’s nuclear watchdog said in a report on Tuesday, according to Reuters and the Associated Press.

Iran is currently enriching uranium up to 60%, which is reaching the 90% needed for weapons, at its Pilot Fuel Enrichment Plant (PFEP) in the Natanz complex and at the Fordow Fuel Enrichment Plant (FFEP).

Rafael Mariano Grossi, the Director General of the International Atomic Energy Agency (IAEA), said in the report that Iran had ‘increased its production of highly enriched uranium, reversing a previous output reduction from mid-2023.’

A State Department spokesperson told Fox News Digital they are ‘greatly concerned’ by the report, and that Iran has ‘no credible civilian justification for enrichment up to 60%.’

‘Iran’s nuclear escalation is all the more concerning at a time when Iran as well as Iran-backed militant groups and Iran’s proxies continue their dangerous and destabilizing activities in the region,’ the State Department spokesperson said. ‘This includes the latest drone attack against U.S. personnel in Iraq, Houthi attacks against commercial shipping vessels in the Red Sea as well as Iran’s latest armed-drone attack against a chemical tanker in the Indian ocean.’

The State Department said Iran must fully cooperate with the IAEA so its nuclear activities can be verified and make sure there is no diversion or misuse of nuclear material.

The U.N. nuclear watchdog said its inspectors had verified the increased rate of production since the end of November at the facilities to about 9 kilograms per month, up from 3 kilograms per month since June and representing a return to earlier levels of production, according to the Associated Press. 

Enriching uranium means increasing the percentage of uranium-235, the isotope of uranium that can be used in nuclear fission.

Weapons require 90% purity, but the level Iran has reached far exceeds the 20% it produced prior to the 2015 nuclear deal, meaning the country has far exceeded the 3.67% cap the deal had mandated. Iran gradually abandoned those limits after the U.S. withdrew from the accord and imposed sanctions.

If enriched further, Iran could make three nuclear bombs, according to the IAEA’s theoretical definition, and more at lower enrichment levels, Reuters reports. Iran denies seeking nuclear weapons and has maintained that its nuclear program is peaceful with treating and preventing the spread of cancer as one of its objectives. 

Many diplomats believed the slowdown, which had begun by June, was the result of secret talks between the United States and Iran that led to the release of U.S. citizens held in Iran earlier this year, according to Reuters. 

The news comes two weeks after Iran’s foreign minister warned that the war in Gaza could lead to a ‘big explosion’ of conflicts in the Middle East, with Lebanon and Yemen already ‘involved’ and more countries poised to join. 

Militant groups have launched a at least 90 attacks against U.S. bases and troops in the Middle East since Oct. 17. Meanwhile, the Iranian-backed Houthi rebels, which control a large part of Yemen, have also attacked several commercial vessels with drones and ballistic missiles in recent weeks leading to heightened tensions in the region. 

On Christmas Day, three U.S. service members were injured in Iraq when Iran-affiliated Kataib Hezbollah terrorists attacked Erbil Air Base, according to Secretary of Defense Lloyd J. Austin.

Fox News’ Peter Aitken, the Associated Press and Reuters contributed to this report.

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Three U.S. service members were injured in Iraq on Christmas Day when Kataib Hezbollah terrorists attacked Erbil Air Base, according to Secretary of Defense Lloyd J. Austin.

Austin announced late on Monday night that American forces ‘conducted necessary and proportionate strikes on three facilities used by Kataib Hezbollah and affiliated groups in Iraq.’

‘These precision strikes are a response to a series of attacks against U.S. personnel in Iraq and Syria by Iranian-sponsored militias, including an attack by Iran-affiliated Kataib Hezbollah and affiliated groups on Erbil Air Base earlier today, and intended to disrupt and degrade capabilities of the Iran-aligned militia groups directly responsible,’ Austin said in a press release.

‘Today’s attack led to three injuries to U.S. personnel, leaving one service member in critical condition,’ the statement added. ‘My prayers are with the brave Americans who were injured.’

This story is developing. Check back with us for more updates.

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Iranian state media claims an Israeli airstrike outside Damascus in Syria on Monday killed a senior advisor in Iran’s Revolutionary Guards.

Reuters reported that three security sources confirmed the death of Sayyed Razi Mousavi, who was responsible for coordinating a military alliance between Iran and Syria.

State television interrupted programming to announce the death of Mousavi and described him as one of the oldest advisors for the Guard in Syria.

The announcement stated that Mousavi accompanied Qassem Soleimani, the head of the Guards’ elite Quds Force, who died in a U.S. drone attack in Iraq in 2020.

Damascus Hossein Akbari, Iran’s ambassador, told state television that the late Mousavi was in the embassy as a diplomat, adding he was killed by missiles fired by Israel after returning home from work.

The assassination was a show of Israel’s weakness, according to Iranian President Ebrahim Raisi.

‘This act is a sign of the Zionist regime’s frustration and weakness in the region for which it will certainly pay the price,’ Raisi was quoted as saying.

Echoing Raisi, the Revolutionary Guards also said Israel would suffer for killing the advisor.

‘The usurper and savage Zionist regime will pay for this crime,’ the Guards said in a statement provided to state TV.

Nasser Kanaani, a spokesperson for the Foreign Ministry, told state TV, ‘Iran reserves the right to take necessary measures to respond to this action at the appropriate time and place.’

Israel’s military did not immediately comment on Mousavi’s death.

Attacks on Iran-linked targets in Syria by Israel are nothing new and have taken place for years. 

Tehran’s influence in the country has continued to grow after backing President Bashar al-Assad in the civil war that broke out in 2011 in Syria.

Iran claimed earlier this month that Israeli strikes killed two members of the Revolutionary Guards in Syria, who also served as military advisers.

Reuters contributed to this report.

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Democrats and Republicans clashed in a number of heated elections across the country this year as they looked to build momentum heading into 2024.

Both parties experienced big victories and disappointing defeats, including in a number of gubernatorial, mayoral and state legislative races.

Here is a look at the top takeaways from 2023’s elections:

Republicans flip Democrat-held Louisiana governor seat

In October, Republicans flipped Louisiana’s governor seat from Democratic control when state Attorney General Jeff Landry defeated Democrat Shawn Wilson.

Landry passed the 50% threshold required to avoid a runoff in Louisiana’s jungle primary system and will take over from term-limited Democrat Gov. John Bel Edwards in January.

The race was the first major contest between Democrats and Republicans heading into the 2024 elections, and both hoped to use it as a springboard for success in the November elections just weeks later.

Landry was only the second Republican elected in the last two decades to lead Louisiana, a traditionally deep-red state, with the other being former Republican Gov. Bobby Jindal.

Lori Lightfoot ousted as Chicago mayor

In March, Democratic Chicago Mayor Lori Lightfoot became the first incumbent leading the city in four decades to lose a re-election bid when she came in third in her party’s primary and failed to make the April runoff.

She was ultimately ousted by progressive Democrat Brandon Johnson, a county commissioner backed by Sen. Bernie Sanders, I-Vt., and the Chicago Teachers Union.

Chicago’s rampant crime problem played a major role in voters’ decision to give Lightfoot the boot as the city saw crime go through the roof during her tenure.

The number of homicides in Chicago in 2021 hit a 25-year-high, reaching 797, according to the Chicago Police Department.

Democrat Andy Beshear wins re-election in deep-red Kentucky

Incumbent Democratic Gov. Andy Beshear handily won re-election in deep-red Kentucky in November, a major blow to Republicans hoping to ride the momentum into the 2024 election year with another big flip after winning in Louisiana.

The rising-star status of Beshear’s opponent, Kentucky Attorney General Daniel Cameron, combined with the unpopularity of President Biden and his fellow Democrats in the commonwealth, ultimately didn’t boost Republicans’ chances at flipping the seat, and led to a large amount of finger pointing within the party in the aftermath.

Immediately following the election, a number of national and local Republicans lamented that former U.N. Ambassador Kelly Craft, who faced Cameron in the GOP primary earlier in the year, wasn’t the party’s nominee, arguing she would have been a more ‘formidable’ challenge to Beshear.

Beshear will continue as one of the last remaining Democratic governors of a deep-red state where Republican voters outnumber Democrat voters and conservative roots run deep. Kansas Gov. Laura Kelley will be the only other Democratic governor of a Republican-leaning state once Landry replaces Bel Edwards in Louisiana in January.

Virginia Democrats win total control of state legislature

In November, Democrats retained control of the Virginia state Senate and flipped the state House of Delegates from Republicans, despite GOP Gov. Glenn Youngkin’s attempts to win total control of the state legislature for his party.

Virginia’s legislative elections grabbed outsized national attention, with both Democrats and Republicans spending millions on the races, which were viewed in political circles as a key barometer ahead of the 2024 elections for president and control of Congress.

Strategists from both parties looked closely at the results in Virginia’s northern suburbs of Washington, D.C., and around Richmond, for signs that Republicans were able to make any inroads with suburban voters — especially women — who fled the GOP in recent election cycles. But there was scant evidence.

The results mean Youngkin won’t have a free hand during his final two years in office to push through a conservative agenda, and are seen as a political setback for a governor with a reputation as a rising star in the GOP, whom some top Republican donors were urging to make a late-in-the-game entry into the 2024 White House race.

Pennsylvania Democrats win, then lose historic state House majority twice

In February, Democrats in Pennsylvania won control of the state House for the first time in over a decade with a one-seat majority after months of uncertainty following the 2022 elections.

Democrats then lost the majority with the resignation of one of its members in July before regaining the majority with a special election victory in September.

The chamber was thrown back into a deadlock earlier this month with the resignation of another Democrat, who departed for a position as a judge, leaving the balance of power at 101-101.

A special election is expected to be held on Feb. 13 to fill the empty seat. 

Ohio voters approve amendment enshrining abortion access in state constitution

In November, Ohio voters approved a constitutional amendment enshrining abortion rights in the state’s constitution. 

The vote was opposed by Republicans, who argued the measure went even further than Roe v. Wade.

The election signaled a major victory for pro-abortion advocates, including the American Civil Liberties Union, who had pumped tens of millions into the state that Trump carried by eight points in 2020. 

The group argued that a constitutional amendment was needed to protect abortion access after the Supreme Court’s reversal of Roe v. Wade.

Mississippi’s Tate Reeves defeats Elvis Presley’s second cousin to win second term

Incumbent Republican Mississippi Gov. Tate Reeves secured a second term at the helm of the Magnolia State in November by defeating his Democratic opponent Brandon Presley, the second cousin to famed rock and roll legend Elvis Presley.

National Democrats saw the race as a potential flip opportunity in a deep-red state and tried to capitalize on that by hammering Reeves for refusing Medicaid expansion. Reeves responded to the attacks by saying he believed in work, not welfare.

Reeves touted his record as governor during the race, citing the state’s lowest unemployment rate in history, rising educational achievement levels and work with hospital leaders to prevent hospitals from closing.

The Mississippi economy and healthcare, in particular Medicare expansion, became major issues in the race, an unsurprising development considering the state is the poorest in the nation with a poverty rate of 18.1% in 2021, according to the U.S. Census Bureau.

Fox News’ Houston Keene, Andrew Mark Miller and Paul Steinhauser contributed to this report.

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One area I cover in the Outlook 2024 is the teachings of Raymond Lo and how he sees the upcoming Year of the Dragon. Part of my comments on his analysis is based on this statement by Lo:

“Many has the misunderstanding that the Dragon is glamorous auspicious animal and will always bring good luck. To the contrary, Dragon and Dog in the 12-animal system is called the “Gate to Heaven and Hell” or the “Net of Heaven and Hell”.

Hence, 2024 could see gains. We are agnostic and definitely looking to charts, especially junk bonds, small caps and retail.

Interestingly, consumers and whether you call it revenge spending or YOLO, are still very much in the game. Disposable income is strong with certain areas of inflation coming down, although still higher than what numbers suggest. The discussion of the rate hike cycle at the end is controversial. Statistically, there has been a major financial failure at the end of each rate hike cycle since 1965.

Currently, the catalyst for financial stress could be the rising debt, rising spending, geopolitical issues impacting supply chain and a contentious election year. And anything that gooses inflation will stop the Fed from cutting.

January 2024 will see a new 6-month calendar range reset — it will be very important this time, with many predicting the end of the first quarter with a selloff. Although the stats are on the side of a higher market, this year of the dragon suggests some irritation that could turn the market on its side with more volatility.

Here are 17 Predictions:

If December SPY closes under 470, January and 460 is key and pivotal.If SPY just hangs in there and does not fail, the small caps and retail can shine. However, gravity always takes over if the sell-off is more severe.FED keeps rates between 4-6% and TLTs hold a range between 92-105 (unless there really is a recession).EVs will be the worst place to invest.Growth will go nowhere; not fail or rally, but more sideways.Alternative energy could make a comeback.Trends for 2024: gold and silver will start their last hurrah; we plan to ride the wave, exit and then move on.Industrial metals will do well.Bitcoin goes to 47k, then drops to 37k for the start of a new rally into the halving.Oil and NatGas are not worth trading for the time being.Consumers that spent the last ½ of 2023 in YOLO or revenge spending go into vanity mode 2024, as fashion, beauty, skin care, elective surgeries, self-help, maybe dating stocks do well — all about me!Banks could do well, but we need to see regional banks lead.We like Media stocks: ROKU, SPOTIFY, LYV.Infrastructure more through manufacturing and engineering, especially automation.Healthcare: We see big pharma putting more pressure on govt for medical cannabis use — ABBV top pick.Emerging Markets: GREK next leg up. Watching FXI and VNM.Commodities stay muted until the 2nd ½ of the year-why?a. Geopolitics — supply chain, labor issues, possible recession followed by more inflationb. Natural Disastersc. Debt and government spendingd. Dollar in a downtrende. Misstep by FED in reducing rates too fast or keeping rates flat while CPI picks upf. Election year: generally positive for stocks, esp. value.

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Follow Mish on Twitter @marketminute for stock picks and more. Follow Mish on Instagram (mishschneider) for daily morning videos. To see updated media clips, click here.

Mish in the Media

Mish discusses gold, silver and why self care and “all about me” can trend in 2024 in this video from Yahoo! Finance.

Coming Up:

December 27: Wrap up extended session, Benzinga

December 28: Singapore Breakfast Radio

January 2: The Final Bar with David Keller, StockCharts TV

January 5: Daily Briefing, Real Vision

Weekly: Business First AM, CMC Markets

ETF Summary

S&P 500 (SPY): 480 all-time highs, 465 underlying support.Russell 2000 (IWM): 200 pivotal.Dow (DIA): Needs to hold 370.Nasdaq (QQQ): 410 pivotal.Regional Banks (KRE): 47 support, 55 resistance.Semiconductors (SMH): 174 pivotal support to hold this month.Transportation (IYT): Needs to hold 250.Biotechnology (IBB): 130 pivotal support.Retail (XRT): The longer this stays over 70.00, the better!

Mish Schneider

MarketGauge.com

Director of Trading Research and Education

The NFL unwrapped its Week 16 slate Sunday on Christmas Eve, and no game was bigger than the battle between the Dallas Cowboys and the Miami Dolphins.

With their loss, Dallas now has to hope for a Christmas Day gift in the form of a New York Giants victory over the Philadelphia Eagles. Otherwise, the Cowboys’ shot at an NFC East title may be slipping away. The Dolphins, meanwhile, helped shake the narrative that they cannot beat a good team, but the performance wasn’t without issue. And one significant one on offense could portend potential problems in the playoffs.

Elsewhere in the NFL, an entire division, the AFC South, came away empty-handed.

Here are the winners and losers from Sunday of Week 16.

WINNERS

Dolphins (finally) beat a good team, but they have a major flaw

Let’s credit Miami: an ugly 22-20 win against a resilient Cowboys team is still a win. It’s also one that helped the Dolphins (11-4) upend a narrative that they cannot compete against top-tier teams in the NFL. But, against Dallas, Miami converted just one of four trips inside the red zone.

NFL STATS CENTRAL: The latest NFL scores, schedules, odds, stats and more.

Going back the previous two games, Miami’s red zone efficiency improves only slightly, combining to go five for 15 over its last three. Goal-to-go scenarios are most concerning, where the Dolphins have simply stalled. Against the Cowboys, Miami went one-for-three, and this comes two weeks after it went one-for-four in a loss against the Tennessee Titans. Coach Mike McDaniel has often called plays that move laterally, the pace and urgency slows, and Miami, at times, seems to overthink its operation. That has happened on third-and-shorts as well, and the Dolphins finally self-corrected late in the game with a quick screen that got Tyreek Hill in open space and a power rush up the middle with Jeff Wilson. It was a huge victory. The Dolphins clinched their second consecutive postseason berth. But their ineffectual short-yardage execution is exactly the type of problem that gets good teams eliminated early.

Baker Mayfield and the Buccaneers

The month of December has been kind to Tampa Bay. The Buccaneers (8-7) have won each of the four games they’ve played in the final month of 2023, and quarterback Baker Mayfield has been particularly efficient. He has thrown for 1,010 yards and has posted a 9:1 touchdown-to-interception ratio in December.

Mayfield has developed an excellent rapport with star receiver Mike Evans, whose 13 receiving touchdowns lead the NFL. In a 30-12 rout of the Jacksonville Jaguars, Tampa Bay converted a season-high 10 third-down attempts. And now, the Bucs have a one-game edge in the division, though their final two opponents are against NFC South foes. The surge is paying off. An NFL Network report ahead of the victory over the Jaguars indicated that Mayfield and the Buccaneers had mutual interest in running it back, with his contract set to expire after the season. A playoff appearance would only strengthen Mayfield’s case for the future.

Amari Cooper and David Njoku

Since veteran Joe Flacco became the starting quarterback of the Cleveland Browns (10-5), receiver Amari Cooper and tight end David Njoku have incinerated opponents. Cooper, in particular, has dominated. Against Houston, he hauled in 11 passes for a Browns single-game record 265 yards, and added a pair scores, giving him 451 yards and three touchdowns over the last three.

Njoku has combined for 22 catches and 239 yards and four touchdowns in the last three games, including a score in each contest. Flacco has deployed a downfield passing attack that has elevated Cleveland’s offense, something the team has sorely needed; over the last three, the Browns are averaging just 55 rushing yards per game. Most importantly for Cleveland, Flacco has helped spark the team to a three-game winning streak, and the Browns have emerged as the top threat for the highest-seeded wild card in the AFC.

Jacoby Brissett

For the second week in a row, Washington Commanders backup Jacoby Brissett entered the game after starter Sam Howell got benched. And for the second week in a row, Brissett brought Washington back from the brink. Brissett was efficient against the New York Jets, completing 10 of 13 passes for 100 yards with a touchdown. He was essential in protecting the ball, making quick decisions and delivering accurate passes to move the chains. The Commanders scored 21 unanswered points in the second half to erase a 20-point deficit before falling 30-28.

In fact, this marked the second consecutive time that Washington began a game down 20-0. Going back to last week, Brissett is now 18-of-23 for 224 yards with three scores. Unfortunately for Washington (4-11), it lost both these games in what has become a lost season. But with his play, Brissett, 31, is proving that when he hits the market as a free agent at the end of this season, he deserves an extended look, at least as a backup.

LOSERS

Denver’s dream for the postseason implodes

The Denver Broncos were at home, facing a three-win team whose offense had scored 26 third-quarter points all season long. Denver proceeded to allow the Patriots to score 20 points in the third frame and then let quarterback Bailey Zappe lead a charge down the field in the final minute so that embattled kicker Chad Ryland could sink a 56-yarder to win the game 26-23. And now, the Broncos might be done.

Denver (7-8) left Sunday in the 11th seed in the AFC, in the very same spot it entered. The problem is that this was a game the Broncos could not afford to drop. According to Next Gen Stats, the Broncos held a 29% chance of making the postseason at the start of the game. A victory would’ve put them up to 42%; a loss dropped those chances to 5%. The Broncos have lost two in a row at the most crucial time of their season.

The entire AFC South

Not a single team in the AFC South won its respective game Sunday, though, in the grand scheme of things, it wasn’t debilitating for any squad. The Texans (8-7) began that day in the AFC’s No. 8 seed; they remained there after their loss to the Browns. The Colts (8-7) began the day at No. 7; they remained there as well after losing to the Falcons. The Jaguars (8-7) were No. 4 and … well, you get the picture.

Despite that, Sunday presented wasted opportunities. And no team lost more than Jacksonville, which two months ago had looked like it could compete for the AFC’s No. 1 seed. Now the Jags have lost four in a row and are turning the ball over constantly — with an astonishing 10 giveaways in their last three. The good news is that Jacksonville finishes with an incredibly generous schedule, with games left against the Carolina Panthers (2-13) and Titans (5-10).

Vikings’ season in peril

One of three teams — joining the Browns and the Jets — to start four different players at quarterback this season, the Minnesota Vikings had nonetheless put themselves in position to make the postseason. The margin for error, however, was rather slim.

Minnesota (7-8) entered the day in the seventh seed in the NFC, the final playoff spot. With the 30-24 loss to the Detroit Lions, the Vikings swapped with the Seahawks (8-7), who toppled the Titans thanks to a last-minute touchdown. According to the NFL’s stats and analytics operation, the Vikings entered the day with a 53% chance to make the playoffs. After their loss against the Lions, that percentage plunged to 31%, marking the biggest drop of any team that played Sunday. Most concerning is that quarterback play. Nick Mullens (22-for-36 for 411 yards, two touchdowns, four interceptions) has shown he can put up yards. Protecting the ball is a different question. Minnesota closes with the Packers (7-8) and the Lions (11-4).

This post appeared first on USA TODAY