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Gaza aid should go to Israel Iron Dome instead, GOP senators say: ‘Wipe Hamas’ from Earth

A group of Republican senators led by Sen. Bill Hagerty, R-Tenn., are introducing legislation Thursday to redirect funds bound for Gaza to instead help replenish Israeli’s defensive ‘Iron Dome’ system.

The bill, which has 10 Republican co-sponsors as of Thursday morning, would require President Biden to transfer ‘all unexpected balances of appropriations made available to Gaza to the Department of Defense, to be available for grants to Israel for the Iron Dome short-rage rocket defend system.’

‘In the wake of Iran-backed Hamas’s savage attack on Israel in which over 1,300 people in Israel were murdered, including 30 Americans, and as Iran-backed Hamas terrorists continue to launch missiles and rockets into Israel, the American people have seen the images of Israel’s Iron Dome missile defense systems repeatedly intercepting rockets and saving the lives of countless civilians,’ Hagerty told Fox News Digital. ‘My legislation requires the Biden Administration to halt U.S. foreign assistance from going to Hamas terrorist-dominated areas and instead to redirect these resources to help Israel resupply its life-saving Iron Dome interceptors. The United States should unequivocally support the right of Israel to defend itself from terrorists.’

Some U.S. officials are worried that Israeli’s defensive Iron Dome system could be stretched thin if the war with Hamas continues to escalate, a fear that would become even more dire if Hezbollah were to enter the conflict.

‘Israel is taking action right now to defend itself and its people. America cannot let Israel stand alone,’ Sen. John Barrasso, R-Wyo., a co-sponsor of the bill, told Fox News Digital. ‘The United States must ensure Israel has the weapons and the military assistance needed to fight any and all terrorist threats. The Iron Dome is the first line of defense for Israel. It is critical to replenish this vital missile defense system so it can remain effective and operational.’  

Sen. Katie Britt, R-Ala., another co-sponsor of the legislation, argued the U.S.-backed Iron Dome system is ‘critical’ to Israel’s ability to defend its civilian population.

‘The Iron Dome is of critical importance for Israel as it defends innocent civilians against the barbaric brutality of Hamas’ terrorist attacks and lives with the reality of additional threats every day,’ Britt told Fox News Digital. ‘The United States stands strongly with Israel—our great ally, friend, and partner.’

The bill comes the same day as President Biden’s planned Oval Office address, set for 8 p.m. ET, with the president expected to make the case to Americans that it is critical to U.S. national security to continue military support for both Ukraine and Israel in the coming months.

Sen. Josh Hawley, R-Mo., another co-sponsor of the bill, argued that the president has insisted on sending aid to Gaza that should be redirected to Israel.

‘The Biden Administration insists on sending foreign assistance to Gaza, while Hamas steals it to fund weapons to kill Israelis and Americans,’ Hawley told Fox News Digital. ‘Congress must act to redirect these funds to Israel to help restock their critical missile defense systems.’

Sen. Marco Rubio, R-Fla., another bill co-sponsor, echoed concerns about funding to Gaza.

‘Now more than ever, the U.S. must stand in support with our greatest ally in the Middle East, Israel,’ Rubio told Fox News Digital. ‘Instead of providing assistance to Gaza, the Biden Administration must ensure any taxpayer funds are used to support Israel’s Iron Dome to defend its citizens from the savagery of Iran-backed Hamas.’

Meanwhile, Sen. Cynthia Lummis, R-Wyo., argued that the U.S. has a ‘moral obligation’ to make sure Israel has the ability to defend itself.

‘In the face of such unspeakable attacks, we have a moral obligation to ensure Israel, one of our strongest allies, has the ability to properly defend its people,’ Lummis, a co-sponsor of the bill, told Fox News Digital. ‘Now more than ever, it’s critical we help fortify the cornerstone of Israel’s defense system to make sure Israel can defend itself from terrorists.’

The bill redirecting funds is also co-sponsored by Sens. Ted Cruz, R-Texas; Thom Tillis, R-N.C.; Rick Scott, R-Fla.; and Tommy Tuberville, R-Ala., with Tuberville arguing that all foreign assistance to Gaza should be halted.

‘The Hamas and Iran-orchestrated terror attacks we have seen in Israel are pure evil,’ Tuberville told Fox News Digital. ‘Israel must wipe Hamas from the face of the earth and ensure that this never happens again. As Israel continues to fight and kill terrorists, the United States has a strategic interest in supporting Israel and supplying Israel. We should immediately stop all foreign assistance to Hamas-controlled Gaza and redirect those funds to the Iron Dome, which has saved countless Israeli civilian lives.’

Reached for comment by Fox News Digital, a National Security Council spokesperson said that ‘U.S. assistance for Palestinians does not go to or through Hamas’ and that the State Department ‘has rigorous oversight over UNRWA policies, programs, and finances – including through the completion of an annual report to Congress on key UNRWA issues, such as quarterly assessments of UNRWA facilities, potential misconduct by UNRWA staff or beneficiaries, and compliance with section 301(c) of the U.S. Foreign Assistance Act of 1961.’

‘The United States provides funding for essential and life-saving humanitarian assistance to Palestinian refugees through vetted international and non-governmental organizations,’ the spokesperson said. ‘These organizations fill a critical role in providing assistance that would otherwise be filled by terrorist organizations like Hamas. Our trusted partners and beneficiaries are subject to extensive vetting and oversight procedures to help prevent assistance from flowing to individuals or organizations that are affiliated with terrorists.’

The spokesperson pointed to remarks Biden has made throughout the month, including directing his team to ensure that Israel had everything they needed for the Iron Dome.

‘We’re surging additional military assistance, including ammunition and interceptors to replenish Iron Dome,’ Biden said last week. ‘We’re going to make sure that Israel does not run out of these critical assets to defend its cities and its citizens.’

The spokesperson also noted that Biden has given assurances that aid would not continue if it fell into the hands of Hamas.

‘If Hamas confiscates it or doesn’t let it get through or just confiscates it, then it’s going to end, because we’re not going to be sending any humanitarian aid to Hamas if they’re going to be confiscating it,’ Biden said Wednesday. ‘That’s the commitment that I’ve made.’

Meanwhile, Deputy White House Press Secretary Andrew Bates pointed out that the ‘vast majority of the Palestinian people are not Hamas.’

‘There is strong, bipartisan support for President Biden’s efforts to deliver humanitarian necessities to the people of Gaza – like food, water, and medicine – without benefiting Hamas,’ Bates said.

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Jordan to cancel third vote, will back McHenry as interim speaker through January

House Judiciary Chairman Jim Jordan will cancel the third vote to elect a speaker in the House of Representatives and will back a move to empower House Speaker Pro Tempore Patrick McHenry until January, Fox News Digital has confirmed.

Jordan lost support on the second ballot Wednesday — scoring only 199 votes after getting only 200 in the first ballot.

He needed 217 to become speaker and could afford few Republican defections. Fox News was told he was expected to lose further votes in a ballot on Thursday.

A source familiar told Fox News Digital that Jordan will not hold a third vote as speaker and will get behind the plan to temporarily empower McHenry until January 3. 

The source said Jordan will remain the House GOP nominee for speaker and will continue to run and attempt to shore up votes until then — a move sources had signaled would be in the best interest of Jordan’s candidacy Wednesday. 

Jordan’s team had said they intended to keep going with a third vote, with supporters optimistic that he could gain support. However, there had also been other potential candidates emerging from the wings amid the stalemate.

Republicans had held a closed-door meeting at 11 a.m. amid escalating tensions within the House GOP, with several of Jordan’s critics stating that they had gotten credible threats because they did not vote for him for speaker. Jordan has repeatedly condemned those threats.

It became clear this week that some Republican lawmakers were looking for alternate paths, including how to empower McHenry, who is currently serving as interim speaker. 

Rep. Dave Joyce, R-Pa., chairman of the Republican Governance Group, has been calling to flesh out McHenry’s role in leadership, particularly in light of the urgency for Congress to approve aid for Israel as it fights a war with terror group Hamas.

The idea also gained steam among lawmakers who voted against Jordan. Rep. Carlos Gimenez, R-Fla., who has said he will keep voting for McCarthy on the House floor, told Fox News Digital that he was supportive of the effort.

The discussions come as the House of Representatives wades in unchartered territory following Rep. Kevin McCarthy’s ouster earlier this month. McCarthy’s removal was the first in the chamber’s history — and it’s not clear that McHenry’s current powers extend beyond just overseeing the election of the next speaker.

McHenry had said that he had no interest in the role of speaker, but amid heightened tensions in the GOP conference, he has emerged as a consensus candidate that at least some Democrats could agree to.

Minority Leader Hakeem Jeffries, D-N.Y., said McHenry was ‘respected on our side of the aisle’ when asked on Tuesday evening if he could be a viable candidate. Jeffries also said there were ‘informal conversations’ about making a deal on a GOP speaker that he hoped would ‘accelerate’ after Jordan’s rocky performance.

On Tuesday night, former Republican Speakers Newt Gingrich and John Boehner both endorsed the idea of empowering McHenry.

Still, sources told Fox News Digital that Jordan has a path to the speakership, with some suggesting he just simply may need more time to garner support. That source said a temporary solution could help Jordan do just that. 

The uncertainty in the House comes after Rep. Matt Gaetz, R-Fla., earlier this month, introduced a motion to vacate against then-Speaker Kevin McCarthy, R-Calif. When all Democrats and eight Republicans voted together, McCarthy was ousted from his post — a first in United States history. 

Brooke Singman is a Fox News Digital politics reporter. You can reach her at Brooke.Singman@Fox.com or @BrookeSingman on Twitter.

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Tesla Stock Has High Expectations: A Strong Pop or Plunge

Sometimes, a stock’s price can tip the market’s hand leading up to an earnings report. You’ll see a strong rally or decline anywhere from days to months before a company lays bare its books. But when you see a chart pattern that hints at indecision, such as a symmetrical triangle, you’re likely in for a volatile move and a great upset, which can go either bullish or bearish.

Such is the case of Tesla (TSLA) over the last quarter. And as you can see, the market’s judgment favored the bears.

CHART 1: TSLA STOCK BREAKS BELOW SYMMETRICAL TRIANGLE. TSLA missed earnings expectations, which sent the stock price below the symmetrical triangle. Chart source: StockChartsACP. For educational purposes.

Let’s back up, look at the bull and bear case, and take a closer look at the pattern itself, its statistical performance, and, most importantly, how you might have traded it.

The Bull Case

Leading up to Q3 earnings, TSLA appeared to be on a roll. It outperformed its sector, Consumer Discretionary, and the S&P 500 index ($SPX) year-to-date.

TSLA was roughly 37% from its all-time high of $414.50, giving it room for growth. It’s the most profitable manufacturer in the EV space, and a lot of hope was riding on the company’s emerging Cybertruck production. So was the planned launch of its robo-taxi service in late 2024. 

Much was riding on TSLA’s guidance as much as its earnings and revenue numbers. 

The Bear Case

The bears’ case against TSLA’s Q3 performance was simple. Demand for big-ticket items slowed in Q3 amid a high inflation environment. Input cost compressed the company’s margins, especially in the midst of its expansion plans. Plus, TSLA is facing increased competition in the EV space. Most importantly, TSLA’s stock price, some argued, was still trading at a premium relative to other automakers. Overbought? Not technically, but fundamentally so, apparently.

TSLA’s Symmetrical Triangle Formation: A 34% Rise or 12% Fall?

TSLA may have outperformed its sector and the broader market before its earnings report, but that changed quickly after the stock price fell (see relative strength against Consumer Discretionary Select Sector SPDR (XLY) and $SPX in the chart below). The Death Cross further muddied the waters. This is where you have to look more closely at the pattern itself.

CHART 2: TSLA PERFORMANCE AGAINST S&P 500 AND XLY. Falling relative strength and the death cross are bearish signals. Chart source: StockChartsACP. For educational purposes.Symmetrical triangles or “coil” patterns are poor performers (according to Thomas Bulkowski’s Encyclopedia of Chart Patterns). They indicate a consolidation phase. They can go either direction despite being considered “continuation patterns.” (Toss a coin, anyone?). 

Their value, however, is that they provide a clear setup for bulls and bears. According to Bulkowski, symmetrical triangles result in the following:

On average, symmetrical triangles rise 34% when they break upward and fall 12% when they break downward.Their success rate in reaching an upward target (using the formation height) is 58% on the upside but only 36% on the downside.BUT, symmetrical triangles also tend to reverse after a breakout 62% to 65% of the time, meaning you have to be flexible when trading this pattern.

How To Trade TSLA’s Symmetrical Triangle

Depending on whether you were leaning bullish or bearish, you could use Bulkowski’s historical average performance to set your targets: 34% to the upside or 12% to the downside.

CHART 3: CALCULATING TSLA’S PRICE TARGET BASED ON MEASURED MOVE. According to the measured move of the symmetrical triangle, TSLA stock can fall as low as $163. Chart source: StockChartsACP. For educational purposes.

Using statistical averages:

A bullish trader might have calculated 34% of the breakout price, projecting it above the current level. Obviously, that did not pan out, as TSLA broke down.On the bear side, the breakdown took place at $250. The target, 12% below that price, would have given you a target of $220. It’s a good idea to place a stop loss just above the breakdown level.

Using a measured approach:

To find the measure, first calculate the pattern’s height by subtracting the lowest point from the highest point of the triangle (299.30 – 212.35). This gives you a height of 86.95.If the price breakout is upward, then you would add the height (86.95) to the price level of the breakout. Since no upward breakout took place, there’s no target. However, the above graph includes where the upside target range might have been if TSLA had broken out toward the upside (red dashed line).Since TSLA broke downward at $250, you subtract $86.95 to project a downside target of $163.05 (rounded to $163.00). As you can see, it greatly differs from using the average decline target of 12% (which was reached).

The Bottom Line

Tesla (TSLA) showcased an uncertain path leading up to its Q3 earnings. While the bullish outlook centered on its year-to-date performance, potential growth space, and dominance in the EV industry, the bearish perspective flagged concerns about the slowing demand in the face of inflation, compressed margins amidst expansion, and increasing competition. 

The symmetrical triangle pattern, known for its unpredictable behavior, further muddied the waters. However, this pattern offers clear setups for optimistic and skeptical investors. The aftermath witnessed a bearish descent for TSLA, reflecting the market’s ultimate judgment and underscoring the importance of flexibility when trading in such patterns.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

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Law firm rescinds job offers to Harvard students over Israel letters

Top U.S. law firm Davis Polk announced in an internal email that it had rescinded letters of employment for three law students at Harvard and Columbia universities who it believed were tied to organizational statements about Israel, one of the latest responses to open letters from university groups about the Israel-Hamas conflict that have roiled university donors, employers, alumni and students. 

“These statements are simply contrary to our firm’s values and we thus concluded that rescinding these offers was appropriate in upholding our responsibility to provide a safe and inclusive work environment for all Davis Polk employees,” said the email, signed by Neil Barr. 

Small-business lawyer Joseph Gerstel posted a screenshot of the email Tuesday on LinkedIn. A Davis Polk representative confirmed it as authentic. 

Barr went on to write, “At this time, we remain in dialogue with two of these students to ensure that any further color being offered to us by these students is considered.”

A representative of Davis Polk pointed to a statement that was included in the email: “The views expressed in certain of the statements signed by law school student organizations in recent days are in direct contravention of our firm’s value system. For this reason and to ensure we continue to maintain a supportive and inclusive work environment, the student leaders responsible for signing on to these statements are no longer welcome in our firm; and their offers of employment have thus been rescinded.” 

The representative did not immediately respond to a question about how the firm identified the students as having signed the statements.

The identities of the students were not revealed in the email, which did not specify which statements the students allegedly signed. A series of public statements supporting Palestinians and blaming Israel for the recent Israel-Hamas conflict has created a firestorm on college campuses and in corporate America since last week.

On Oct. 10, The Harvard Crimson, one of the university’s student-run news publications, reported that more than 30 Harvard student groups signed on to a letter that said they held Israel “entirely responsible” for “all unfolding violence” in the conflict, which came after a surprise Hamas attack on Israel killed over 1,300 people. Since the letter was published, numerous CEOs, business leaders and a federal judge have responded by cutting ties with the university, calling for the identifications of students involved with the letter or saying they would not hire the students involved. 

Sweetgreen CEO Jonathan Neman posted on X that he would “like to know” which students signed the Harvard statement “so I know never to hire these people.” 

“Same,” EasyHealth CEO David Duel wrote on X, replying to Neman. 

FabFitFun CEO Michael Broukhim echoed them, and in a post on X he wrote, “Discriminating against terrorist supporters is the most comically easy decision I’ll ever have to make as a CEO.”

Judge Matthew Solomson of the U.S. Court of Federal Claims also reportedly made a statement on LinkedIn that he would not let any of the students who signed on to the statements clerk for him. 

Prominent donors have also cut ties with Harvard over the statement, including the Wexner Foundation — co-founded by Leslie Wexner, the former CEO of Victoria’s Secret. 

The Harvard Crimson reported last week that at least four online websites have revealed the identities and personal information of students in groups that signed the statement. The Harvard student group that issued the statement has removed the list of organizations that signed on to it.

Harvard President Claudine Gay pushed back against the students’ statement, writing in her own statement to the Crimson on Oct. 10 that “no student group — not even 30 student groups — speaks for Harvard University or its leadership.”

Student groups at other Ivy League universities, including Columbia University, issued similar joint statements in support of Palestinians. 

A week previously, another prominent New York City law firm, Winston & Strawn, announced it had rescinded a former summer associate’s letter of employment over “inflammatory comments” that were distributed to the NYU Student Bar Association.

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UK Prime Minister puts US officials on blast regarding Hamas: ‘Call it what it is … evil terrorists’

United Kingdom Prime Minister Rishi Sunak visited Israel on Thursday, when he held diplomatic talks with Israeli President Isaac Herzog and condemned Hamas, a terrorist group that governs Gaza, for their ruthless assault on Oct. 7, when they slaughtered more than 1,400 Israelis in a single day.

Sunak’s visit came on the 13th day of Israel’s war with Hamas, and he minced no words in describing the terror group. 

‘First and foremost, I want to express my solidarity with you and your country after you have suffered something unspeakable, a barbaric act of terrorism, as you said, we should call it what it is: an act of terrorism perpetrated by an evil terrorist organization, Hamas.’

‘We will stand with Israel, we will stand with you in solidarity with your people and your right to defend yourself, to bring security back to your country, to your people, to ensure the safe return of the hostages that have been taken,’ Sunak said. ‘Because that’s the right thing to do. You have not just a right to do that, I think you have a duty to do that, to restore that security to your country. But I’m also grateful to you for the support that the Israeli government has provided to the families and British nationals who have been caught up in this tragedy.’

The unequivocal moral distinction comes as some U.S. lawmakers, including Rep. Rashida Tlaib, D-Mich., repeated a debunked claim that Israeli Defense Forces (IDF) were responsible for an explosion that struck a Gaza hospital, reportedly killing hundreds of civilians. On Wednesday, Tlaib also accused the Biden administration of funding a ‘genocide’ against Palestinians.

Sunak said the U.K. supported Israel’s right to defend itself against the Hamas terrorists and urged the swift return of Israeli hostages.

He added, ‘I very much appreciate that and I know we will continue to cooperate closely and support your efforts to ensure the safe return of all the hostages.’

The U.K. prime minister also expressed a need for humanitarian assistance to civilians in Gaza.

‘I’m glad that you and I have had a chance to discuss the need for humanitarian access. Palestinians are victims of what Hamas has done,’ he continued. ‘And it’s important that we continue to provide humanitarian access. I welcomed the announcement yesterday – the U.K. has announced further aid that we’re prepared to bring into the region.’

‘And we’re keen to see that that gets to those who need it. I very much welcome the progress that we’ve made on that. The relationship between our two countries has always been strong. But I want you to know at this particular moment, you don’t just have our friendship, you have all solidarity with you,’ he concluded.

President Herzog also spoke Thursday, saying he was ‘extremely grateful’ for Sunak’s visit.

‘You’ve come to visit Israel in our darkest hour, but we will overcome and prevail and it will be our finest hour. Mr. Prime Minister, you will see here in Israel the way our nation has risen following the horrendous attack, following the shock and the trauma, with enormous pain that we are carrying with us on an hourly basis,’ he said. ‘Every hour another story, another story and another story of shocking stories, shocking – people being burned and tied up in barbed wire, you can only think about a family just before they are totally murdered, and heads cut off, all the things that you’ve been hearing.’

Herzog also said Israel was facing ‘a test,’ and went on to say, ‘We are seeing ISIS on our border, entering into our country. And it’s an empire of evil, which we know is led from Tehran. It’s a coalition of evil led from Tehran, which has its forks in Lebanon, which has left havoc in Syria, Yemen, and Iraq. This is the real international interest, the security interest of all the nations of Europe, and this is how we feel and see this moment.’

The visit comes a day after President Biden landed in Tel Aviv, where he met with Herzog, Israeli Prime Minister Benjamin Netanyahu and other Israeli officials.

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Israel arrests 63 Hamas operatives in West Bank

Dozens of Hamas operatives have been arrested in the West Bank overnight, the Israeli military announced Thursday. 

The Israel Defense Forces (IDF) said in a statement that its troops and the Shin Bet security agency ‘operated in many centers throughout the Judea and Samaria Division for Countering Terrorism’ and as a result ‘arrested over 80 wanted persons suspected of involvement in terrorist activities and numerous weapons. 

‘Sixty-three of them are active in the terrorist organization Hamas,’ the IDF said, adding that it has now taken more than 330 people with ties to Hamas into custody since the terrorist group launched its war on Israel on Oct. 7. 

Additionally, Israeli security forces said they demolished the home of a terrorist, Ahmed Yasin Jidan, who carried out a shooting attack in July that killed IDF Staff Sergeant Shilo Yosef Amir, local Israeli news station i24 News reported.  

LIVE UPDATES: ISRAEL AT WAR WITH HAMAS 

IDF said that suspects threw stones at security forces during the demolition and the army responded ‘with measures to disperse demonstrations.’ 

The IDF later posted on X Thursday that for the 13th day in a row, sirens are sounding across Tel Aviv and central Israel warning residents of incoming rockets. 

At least 4,800 people have been killed in the war on both sides, including at least 1,400 Israeli civilians and soldiers and 31 Americans.  

Palestinian health authorities say at least 3,478 Palestinians have been killed and more than 10,950 wounded, while 12 American citizens remain unaccounted for. 

HEZBOLLAH SAYS IT’S ‘THOUSANDS OF TIMES STRONGER’ THAN BEFORE, WARNS US, ISRAEL: REPORT 

Israeli Prime Minister Benjamin Netanyahu, while speaking alongside German Chancellor Olaf Scholz at a news conference on Tuesday, described Hamas as ‘the new Nazis’ and called on the world to unite and eradicate the terrorist organization the same way it defeated the Nazis in World War II. 

Netanyahu spoke of the terrorism conducted by Hamas, which included rape and murder of women, beheading of people, shooting of children with bound hands, abduction of families, murderers entering attics to kill babies and the ‘tearing of grandmothers and Holocaust survivors into captivity.’ 

‘This is the savagery of that we only remember from Nazi crimes in the Holocaust,’ he said. ‘Hamas are the new Nazis. Hamas is ISIS, in some instances worse than ISIS. And just as the world united to defeat the Nazis, just as the world united to defeat ISIS, the world has to stand united behind Israel to defeat Hamas. This is part of an axis of evil of Iran and Hezbollah and Hamas.’ 

Fox News’ Chris Pandolfo and Greg Wehner contributed to this report. 

Greg Norman is a reporter at Fox News Digital.

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Republicans grill Biden’s Israel ambassador nominee Jack Lew in Senate hearing: ‘Win for Iran’

Republicans on the Senate Foreign Relations Committee pressed President Biden’s nominee for ambassador to Israel, Democrat Jack Lew, on his past work on Iran sanctions during a nomination hearing Wednesday. 

Several pro-Palestinian demonstrators protesting against Israel disrupted the first few minutes of the hearing. After they were escorted out, the meeting continued uninterrupted. 

Lew defended his record on the Iran deal, known as the Joint Comprehensive Plan of Action, and asserted he would work to advance a ‘negotiated two-state solution to the Israeli-Palestinian conflict.’

‘I want to be clear, Iran is a threat to regional stability and to Israel’s existence,’ Lew said. ‘If confirmed, I will uphold President Biden’s commitment to deny Iran a nuclear weapon.’ 

In 2018, a Senate report by the investigative subcommittee of the Senate Homeland Security and Governmental Affairs Committee found that Lew, during his tenure as secretary to the Treasury under the Obama administration, ‘granted a specific license that authorized a conversion of Iranian assets worth billions of U.S. dollars using the U.S. financial system.’  

The report found that the administration tried to convert $5.7 billion from U.S. banks to Iranian assets. It noted that the Treasury’s Office of Foreign Assets Control ‘encouraged two U.S. correspondent banks to convert the funds.’

In January 2016, then-President Obama announced a $400 million cash transfer to Iran that was part of a larger installment of a $1.7 billion settlement, for which Lew faced scrutiny. The settlement was part of a long-standing disagreement over an arms deal that was signed before the 1979 Iranian revolution, signifying the end of the nation’s historical monarchy.

Lew — who also served during the Clinton administration as special assistant to the president’s office — faced scrutiny for the transfer. The Wall Street Journal reported at the time that the payment was conducted using a combination of Swiss and other foreign currencies, then transported to Iran on unidentified cargo planes.

Senators during the hearing cited these reports in their questioning.

‘As I said, to me, this whole thing is about Iran, and holding hands with Iran under the table doesn’t work for me,’ Ranking Member Sen. Jim Risch, R-Idaho said. ‘And I’m deeply disappointed that you issued that license, deeply disappointed that you didn’t tell us about it, deeply disappointed that you misled us in July.’

Sen. Marco Rubio, R-Fla., a member of the committee, echoed Risch’s concerns.

‘Your testimony is that you were not providing them access to the U.S. financial system. You then issued a special license, which is not published, maybe no one was supposed to find out about it, to help them gain access to the U.S. financial system, then asked banks to help convert the funds,’ he said. 

Sen. Ted Cruz, R-Texas, called out Lew’s record of voting in favor of the 2015 United Nations Security Council Resolution 2334, which declared Israel had ‘no legal validity,’ and said Lew was ‘a critical player in the Obama administration’s campaign of appeasement with Iran.’ 

‘You played a pivotal role in flooding over $100 billion to the Iranian regime. The Biden administration has continued that policy flooding nearly an additional $100 billion to the Iranian regime,’ he said. 

When asked if he still believed Israel was illegally occupied territory, Lew said, ‘I do not believe that it is illegally occupied.’

‘Why did you support a U.N. resolution saying that?’ Cruz asked.

‘I think that we could have a conversation about that, but it’s gonna take me more than 10 seconds to respond,’ Lew said.

GOP skepticism

Days before the hearing, a handful of GOP senators began talks that they would oppose Lew’s confirmation, which Democrats on the committee say they want to push through quickly to show support for Israel. 

A vote will take place in a business meeting next week. If approved, Lew will have to be confirmed by the entire Senate.

Lawmakers have been critical of Iran over longstanding support for Hamas, which recently attacked Israel. The GOP has criticized Biden for approving the $6 billion deal Iran in exchange for the release of American hostages

The deal allowed the transfer of Iran’s frozen assets held in a South Korean bank to accounts in Qatar.

The administration said the money can only be used for humanitarian purposes and that the U.S. will have oversight as to how and when the funds are used. However, it quickly drew skepticism about whether those funds could have been used to fund the surprise attack in Israel after a bombshell Wall Street Journal report said Hamas and Hezbollah helped Iran plan the attack.

‘Appointing Jack Lew as U.S. Ambassador to Israel would be a win for Iran,’ Sen. Marsha Blackburn, R-Tenn., told Fox News Digital on Wednesday. ‘As Treasury Secretary under President Obama, Mr. Lew was responsible for administering sanctions as a part of the dangerous Iran nuclear deal that he boldly championed. Now, as Israel faces an egregious attack from Iran-backed Hamas, we need to send a U.S. representative to Israel who will support our shared interests and strengthen our relationship. That representative is not Jack Lew.’ 

Sen. Tom Cotton, R-Ark., who sits on the Senate Armed Services Committee, told Fox News Digital on Monday evening that he will vote to oppose Lew during a confirmation vote if he proceeds to a full confirmation and that he will be leading an effort to persuade other GOP colleagues this week to block his confirmation.

‘I know my Democratic colleagues contend that we should confirm Jack Lew properly to show our support for Israel, but I would turn that around. We should defeat Jack Lew’s nomination to show that our nation has a new policy towards Iran.’ Cotton said.

A Senate GOP aide also told Fox News Digital Wednesday that a handful of Republicans are likely to oppose Lew, which would delay his expected confirmation. 

Jamie Joseph is a writer who covers politics. She leads Fox News Digital coverage of the Senate. 

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Jordan holdouts get death threats over gavel fight, GOP speaker nominee condemns

Several House Republicans who are not voting in favor of House Judiciary Committee Chairman Jim Jordan’s speaker bid said they have received death threats over their votes.

GOP Reps. Marianette Miller-Meeks of Iowa and Nick LaLota of New York said they have received death threats after not voting for Jordan’s speakership bid.

Jordan’s office has denounced the death threats, with spokesperson Russell Dye calling the actions ‘abhorrent’ and having ‘no place in a civil discourse.’

‘No one should receive threats and it needs to stop,’ Dye said. ‘We have condemned these actions repeatedly.’

‘It is important that Republicans stop attacking each other and come together,’ he added.

Miller-Meeks released a statement on Wednesday night about the ‘credible death threats’ she has received after voting for House Appropriations Committee Chairwoman Rep. Kay Granger, R-Texas, for speaker over Jordan in the second round of voting.

The Iowa Republican said Jordan ‘was not able to secure enough votes’ to take the gavel after supporting him in the first round and her ‘initial concerns about threatening tactics of Jim Jordan’s supporters, including from members of Congress, increased despite assurances.’

She also said she voted for Granger ‘because she has demonstrated great leadership this year by bringing forth, and passing, fiscally responsible, single-subject appropriations bills and is a staunch conservative.’

‘However, since my vote in support of Chairwoman Granger, I have received credible death threats and a barrage of threatening calls,’ Miller-Meeks said. ‘The proper authorities have been notified and my office is cooperating fully.’

‘One thing I cannot stomach, or support is a bully,’ she continued. ‘Someone who threatens another with bodily harm or tries to suppress differing opinions undermines opportunity for unity and regard for freedom of speech.’

‘That’s why I spoke out forcefully against censorship and suppression during the COVID-19 pandemic,’ Miller-Meeks said. ‘I did not stand for bullies before I voted for Chairwoman Granger and when I voted for Speaker designee Jordan, and I will not bend to bullies now.’

Meanwhile, LaLota tweeted a picture of an email he said he received, telling him to go ‘f— yourself and die.’

‘If I see your face, I will whip all the hair out of your f—ing head you f—ing scumbag,’ the person wrote.

LaLota wrote that his ‘vote card belongs to me and the people of [New York’s] First Congressional District.’

‘I will not succumb to threats,’ LaLota tweeted. ‘Rather, I’ll support a Speaker candidate who will fund the WTC Health Fund, Nat’l Flood Insurance and SALT, while keeping the [government] open [and] secure border [and] cut spending.’

Additionally, Florida Republican Rep. John Rutherford, who voted against Jordan on Wednesday, pinned the blame for threats against his staff on the GOP speaker nominee.

‘He is absolutely responsible for it,’ Rutherford said, The Washington Post reported Wednesday. ‘And look, it doesn’t work — especially against people like [Scalise] and others.’

‘Nobody likes to have their arm twisted. Talking about individuals’ wives and those sorts of things?’ Rutherford was quoted as saying. ‘That’s just not acceptable.’

Rep. Mike Simpson, R-Idaho, also spoke out against the threats on X, formerly Twitter, writing that House Majority Leader Steve Scalise earned his ‘vote for Speaker in the last two rounds.’

‘He has repeatedly proven his leadership as our conference’s Majority Leader, and I am honored to support him,’ Simpson said.

‘Intimidation and threatening tactics do not — and will not — work,’ he added.

Additionally, some people have reportedly sent Nebraska GOP Rep. Don Bacon’s wife anonymous messages threatening to remove him from his job unless he votes for Jordan.

Some House Republicans have spoken out about the threats against members, with New York Rep. George Santos, who is voting for Jordan, saying he will join his colleagues against the House Judiciary Committee chairman’s speakership bid ‘in protest’ if the threats continue.

‘I’m for Jim Jordan for speaker but, if the nasty hatred and attacks against some of my colleagues continue I will be joining them in protest,’ Santos tweeted on Thursday. ‘America first always!’

‘However attacking good patriots is not the way to get them on your side,’ he wrote. ‘We need to have dialogue to bring them onboard team Jordan!’

Rep. Carlos Gimenez of Florida, who has consistently voted for former House Speaker Kevin McCarthy to return to the gavel, condemned the threats.

‘It is despicable that my dear friend and colleague [Miller-Meeks], a doctor [and] Army Lt. Colonel, has received credible death threats for voting for her candidate of preference,’ Gimenez wrote.

‘This has never been seen before in a Speaker’s Race,’ Gimenez continued. ‘It must be universally condemned.’

The threats come as a third vote for Jordan’s speaker bid remain uncertain.

The House is heading into yet another day without a speaker, and potentially another day of votes amid Republican infighting and a failure to rally enough support — twice over — for Jordan.

Wednesday’s vote saw Jordan lose some supporters in his failed second bid for the speaker’s gavel, culminating in the House dispersing that night.

Scalise said the next votes in the House would take place no earlier than 12:00 p.m. ET Thursday.

Fox News Digital’s Brooke Singman contributed reporting.

Houston Keene is a politics writer for Fox News Digital.  Story tips can be sent to Houston.Keene@Fox.com and on Twitter: @HoustonKeene 

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Politics

Potential speaker candidates emerge from shadows as Jordan’s bid falters

Potential challengers are waiting in the wings for Judiciary Chairman Jim Jordan, R-Ohio, to step away from the race for House speaker after he failed to clinch a majority of support in back-to-back House-wide votes.

Rep. Jack Bergman, R-Mich., a retired Marine Corps general, is ‘prepared’ to step into the race if Jordan falters, his spokesman told Fox News Digital. Bergman had supported Jordan throughout his run for speaker.

‘Following the second round of voting, the General was approached by colleagues and has had conversations about a possible Speaker run — it’s becoming clear Rep. Jordan’s path is narrowing by the hour,’ the spokesman said.

‘We cannot go another day without a Speaker. He simply doesn’t have the votes — we need to have a frank discussion as a conference about a path forward. If as a conference we see he can’t get the necessary votes to become Speaker, General Bergman is prepared to step up.’

Bergman is seeking to cast himself as a stable force to lead the House until the new term begins in 2025.

‘The General isn’t seeking to climb the ladder, only steady it in a time of chaos — and would only seek to be Speaker for the remainder of the 118th Congress,’ his spokesman said. ‘Rep. Bergman served our Nation for 40 years in the United States Marine Corps — retiring as a Lt. General. He knows how to put others first to accomplish the task at hand.’

Meanwhile, a source familiar with discussions told Fox News Digital that Budget Committee Chairman Jodey Arrington’s name ‘keeps popping up as an alternative in conversations with holdouts unhappy with Jordan.’

Arrington, R-Texas, would be an attractive candidate for establishment Republicans due to his experiences working under former President George W. Bush’s administration, the source said, while his recently produced budget framework to slash spending could be appealing to hardline conservatives.

A different source familiar with Arrington’s plans said, ‘We really are working to get Jordan to 217, and we are standing by our Conference nominee. Getting this done and getting back to doing the People’s work is what we’re laser-focused on right now.’

The first source also mentioned Republican Study Committee Chair Kevin Hern, R-Okla., as ‘another alternative waiting in the wings.’ Hern had toyed with the idea of running for speaker before stepping back from the race over concerns a three-way competition could fracture the House GOP.

Other reports have also suggested Rep. Mike Johnson, R-La., vice chair of the House GOP conference, as a possible candidate. A third source close to discussions acknowledged hearing ‘whispers’ about Johnson.

A moderate Republican lawmaker even floated Rep. Chip Roy, R-Texas, who has emerged this year as a top liaison between GOP leadership and the hardline-right House Freedom Caucus. 

‘Conservatives want Jim Jordan. But Jim Jordan isn’t going to get the job done and doesn’t have our support. Chip Roy would be a different story. He’s principled,’ the lawmaker told Fox News Digital.

Hern and Johnson’s offices did not immediately respond to a request for comment Thursday morning.

Jordan won 199 votes in his second try at the speaker’s gavel on Wednesday, after winning 200 the previous day. 

His office has indicated that he will go through another vote on Thursday, but it’s likely to be the final bellwether on whether Jordan’s candidacy still has viability.

Elizabeth Elkind is a reporter for Fox News Digital focused on Congress as well as the intersection of Artificial Intelligence and politics. Previous digital bylines seen at Daily Mail and CBS News.

Follow on Twitter at @liz_elkind and send tips to elizabeth.elkind@fox.com

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Stocks

Revisiting the 1987 Stock Market and Fishhoks

On September 7, 2023, I wrote about a “fishhook” structure formed in the Price Oscillator of the S&P 500. A fishhook occurs when a Price Oscillator or Summation Index plot makes a temporary reversal attempt and restarts the prior trend. A fishhook represents a failure of the forces of reversal, and it opens the door to the prior trend, resuming itself with renewed vigor.

The granddaddy was the fishhook structure formed in late September 1987, as featured in the chart above.

When it rolled over again, the famous crash of October 19, 1987 followed. Fishhooks don’t always lead to such big calamities, but the potential energy is there, which is why I get excited about them.

As for the one I shared on September 7, here is how that one turned out (see chart below).

We didn’t see a crash after this August 2023 fishhook, but it did have the power to produce a lower low for the S&P 500. And now the Price Oscillator has turned back up from a fairly low level, signaling that the bulls have the ball and the potential to run with it.

Turning back to that 1987 episode, there is much more to that story that many younger investors didn’t live through, so they do not remember. I got permission to share the following recollections from Art Cashin, who is the Director of Floor Trading at UBS and a frequent guest on CNBC:

“On this day (+1) in 1987 (that’s 36 years ago if you are burdened with a graduate degree), the NYSE had one of its most dramatic trading days in its 231-year history. It suffered its largest single day percentage loss (22%) and its largest one-day point loss up until that day (508 points). No one who was on the floor that day will ever forget it. While it was an unforgettable single day, there were months of events that went into its making.

The first two-thirds of 1987 were nothing other than spectacular on Wall Street. From New Year to shortly before Labor Day, the Dow rallied a rather stunning 43%. Fear seemed to disappear. Junior traders laughed at their cautious elders and told each other to “buy strength” rather than sell it, as each rally leg was soon followed by another.

One thing that also helped banish fear was a new process called “portfolio insurance”. It involved use of the newly expanded S&P futures. Somewhat counter-intuitively, it involved selling when prices turned down. The rally topped out about August 25 with the Dow hitting 2722. Interest rates had begun creeping up amid concerns of early signs of inflation. Treasury Secretary Baker began a rather open debate with the Germans on the relationship of the dollar and the Dmark. Soon the weakness in the market was turning into a visible correction. By the middle of October, the Dow fell to break an uptrend line that had protected it for over 1000 points. The flurry of takeovers and leveraged buyouts that had flourished all year began to dry up.

On Wednesday, October 14, there were widely discussed rumors of a new punitive tax on takeover profits. Selling turned a bit ugly and the Dow fell 96 points by the close (a record point drop at the time). The next day there was no bounce and the Dow fell another 58 points.

Friday, the 16th was an option expiration day. There was a very bad storm in London and that market closed, which forced more people to seek liquidity in New York. Stocks faced a steady wave of selling. As the close neared, rumors spread that the First Lady, Nancy Reagan, the President’s right hand, might be admitted to the hospital with cancer. The selling intensified and the Dow closed down 108 points, on the low and a new record point drop.

The weekend was a rumormonger’s delight. Nancy was admitted to the hospital. Japan was considering a confiscatory 96% tax on real estate speculation. Germany proposed a change in taxes on some interest rates, which would make U.S. Treasuries unattractive to Germans. Rep. Gephardt was talking about a trade bill that would freeze imports. Treasury Secretary Baker went on a Sunday talk show and openly challenged the Germans on currency. There were even rumors of U.S. planes engaging Iran.

At the time, I was running the floor for PaineWebber. Monday morning, I got up well before dawn and saw that Hong Kong was down about 10% and other markets were looking equally weak before their openings. I headed for the NYSE to check on our systems and staffing. I reached out asking the team to get in early. Once I had checked out the systems and verified staffing, I went with a partner up to the Luncheon Club for a quick coffee. With markets around the globe all down about 10%, I didn’t know if we’d get to a coffee-dash or anything else after we opened.

We sat about two tables away from a table where NYSE Chairman John Phelan sat with several directors and some staff. Every ten minutes or so, someone would rush up to Phelan and slip him a note or whisper in his ear. It was evident that things were deteriorating. As I headed for the floor, I went past Phelan’s table, put my right arm across my chest and said, “Morituri Te Salutamus Esse.” It was the gladiator’s salute to the Emperor: “We, who are about to die, salute you.” Phelan nodded without a smile.

The opening was not an outright disaster, but that was primarily due to the fact that many stocks did not open immediately. They were delayed, with indications to warn investors of the prices that they might open at (with hopes of inviting bargain hunters). Meanwhile, in Chicago, where you could short without a plus-tick, prices headed for freefall. Soon prices were lower in Chicago than in New York. That brought even more selling pressure to New York.

Shortly after the opening, as it became clear that this would be a very special and very dangerous day, several NYSE directors met in Chairman Phelan’s office. They checked around the street to gauge any new trends in the selling pressure. They were also on the phone with the White House via former Senator Howard Baker, who was White House Chief of Staff.

Meanwhile, back on the floor, the situation felt more unreal. Orders flowed in faster and faster, and the tape ran later and later. (The tape was linear, and the human eye can only recognize a certain number of symbols per second, 900 I think. To run faster than that would make the tape an unreadable blur. Traders can trade faster than the maximum reading speed, so the tape ran late.) One broker said it was like a bizarre dream sequence-nothing seemed real.

In late morning there were signs that the markets might begin to stabilize. Then the newly appointed Chairman of the SEC, David Ruder, was intercepted by reporters leaving a meeting at the Mayflower Hotel in Washington. Whatever they asked and whatever he said, it somehow was reported that the markets might have to be halted. Later, he would swear it was a typo, but you can’t un-ring a bell. The fear of a halt sent buyers scurrying away. Stocks went into virtual freefall. The interaction with the futures saw prices melt away. The Dow closed down 508 points. One specialist, who made too good a market, ran out of funds and the firm was sold to Merrill Lynch that very night. At watering hole after watering hole, traders and specialists reported again and again how strained their resources were. Wall Street could not survive another day like this. Luckily, innkeepers, like Harry let them put the drinks on a tab.

What is often lost in the retelling is that the next day, Tuesday, was far more dangerous. It was the day that the wheels almost did come off the locomotive. The Dow opened up about 200 points Tuesday to a round of cheers on the floor. But, stocks quickly turned lower. The 200-point gain was erased, and the Dow went negative, accompanied by an audible gasp on the floor. Soon it was nearing -100 and trading was being halted in several of the Blue Chips that make up the Dow.

Then we learned that several key banks were shutting down the credit lines of market makers and NYSE specialists. The banks feared exposure to an apparently collapsing stock market.

NYSE Chairman Phelan reached out to the recently appointed head of the Fed, Alan Greenspan. Unfortunately, Greenspan was on a plane. Desperate, Phelan called the President of the New York Fed, Gerry Corrigan. He sensed the danger immediately and began calling the banks to reopen the credit lines. They were reluctant but Corrigan ultimately cajoled them. The credit lines were reopened, and the halted stocks were reopened. Best of all, the market started to rally and closed higher on the day. It was an incredible time, and the financial system was within hours (and a few phone calls) of an absolute collapse. It was a time I’ll never forget.

After the crash, regulators added varying levels of circuit breakers and assured us they would prevent any repeat of the crash. Cynical traders likened the circuit breakers to lifeboats painted on the side of a ship. They were comforting and reassuring to look at but thoroughly useless in a real crisis. They were useless in the “flash crash” in May of 2010 and in the negative TARP vote selloff, and scores of other occasions. There is nothing more powerful than a free market that has changed its mind.

There are a couple of other points worth noting for history’s sake. The first is that Fed Chairman Alan Greenspan had just been appointed on August 11, 1987, two weeks before the final price top that year. And on Sep. 4, 1987, he and the FOMC raised the Fed’s Discount rate from 5.5% to 6.0% as a way for the new dog in town to mark his territory. It was the first such hike since 1984 and did not go over well.

It is worth noting that because of the high volume of trading on Oct. 19, 1987, the Consolidated Tape System could not handle all of the price quotes, so the tape ran as much as 90 minutes behind real-time. So brokerage firms and investors around the country had no real idea what was happening on the trading floor unless they could get through to their representatives on the phone, and you can imagine how poorly that worked. Many traders sent in blind orders, with no idea at what price they would be executed, just because they were scared and wanted out, thus exacerbating the severity of the selloff.

I was not a market participant in 1987. I was an Army captain then and a helicopter pilot, just freshly transferred to an installation near Frankfurt in what was then called “West” Germany. I learned about the crash while driving home on Autobahn 66 while listening to the news on Armed Forces Radio.

My father, Sherman McClellan, was not yet in the newsletter business in 1987 (we started that together in 1995 after I got out of the Army). But Sherman did have some institutional clients he was advising at the time; he advised them in August 1987 that it was an “important top.” It was a lower Summation Index top and a third top at that.

After the crash, the great worry among investors was that the October 1987 crash was just like the October 1929 crash and it would lead us into a new Great Depression again. But by early 1988, it was clear to Sherman that something different was going on.

The ability of the Summation Index to recover from the crash lows and push up to a nice high level told Sherman that it was not going to be a repeat of the 1929 scenario (and a continuation to the 1932 low), and he told that to his clients at the time. He also went on Gene Morgan’s Charting The Market TV show on KWHY-TV, channel 22 in Los Angeles to tell Gene’s viewers that it was not the start of another Great Depression and that the October and December 1987 lows should be firm. KWHY was the original “Business Channel” and it innovated a lot of the business news reporting features that are common today, including the scrolling ticker on the bottom of the TV screen.

Unlike in 1929, when the Fed remained tight and Congress raised taxes, the Fed in 1987 threw money at the problem and told banks to keep lending and it worked. Greenspan was able to pull the market back up out of the crash that his new-in-office rate hike had helped to create, and rather than being criticized for having run the markets and the economy into a ditch, he was lauded for his expertise in pulling us all out of the ditch. As a result, Greenspan was rewarded with additional terms as Fed Chairman, serving until January 2006.

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