To 1200 beginning in israel and the gaza strip. Fox news correspondent ben hall with details now you from london. Benjamin. Reporter maria, yes, good morning. This continues to change every minute. Firstly we heard a couple hours ago the Israeli Defense force recaptured all of the towns that Hamas Terrorists were in control of along the border but that was two days a that some of the terrorists managed to control some territory. They went doortodoor, they killed women, they killed children and it is an atrocious scene. Now that is finished. Now they are back inside gaza. The next step of the operation must begin and this is where people are watching to see what happens. It does look as if israel is about to launch a Ground Invasion into gaza. We dont know if that will be the next few days or the next few weeks but they have said very clearly that this is what they have to do to get rid of every single israel gaza or rather hamas operative that is in there. One of the big concerns, however, are the hostages that are being held right now by hamas. We know there are at least 100 including women, children, elderly, they are spread across hamas we believe and across gaza and the fear is that if the israelis go in, there will be brutal street to street fighting, the safety of some of the prisoners, they may end up being killed. Its difficult to know exactly how the israelis will play this. We know at the moment they are bombing across gaza. Theyre taking out as many hamas sites as they can and we know that hamas has contained some of their weapons factories, some of their military placements inside hospitals, inside schools and so again, the sad reality is that if the israelis want to go in and take out placements, there is concern for collateral damage. We know israelis blockaded totally gaza at this point. Israeli defense minister coming out very clearly, saying that they have now have a complete blockade. There will be no electricity, no food, no fuel, everything is closed and he said we are fighting human animals and we will act accordingly. It will be a very brutal battle inside gaza. That is for sure. One of the bigger questions as well at the moment is the role of iran, were they behind this, did they give a green light and we heard from the wall street journal yesterday they have evidence, they have spoken to senior hamas and hezbollah leaders who said yes, they did, they had said they met as recently as monday in beirut and gave the green light for this, one of the quotes in the wall street journal says officers of the iran guard corps worked with hamas since august to de i dids the incursion to devisc. The incursions. If it turns out that iran was behind this and we know already that they supplied rockets, training, money to hamas, well this could become a much wider regional war. Secretary blinken yesterday saying the u. S. Had no intelligence that iran was behind this but other sources saying perhaps they were. But were waiting to see whether this escalates, whether iran could be at the forefront of this, whether or not hezbollah from the south could fire rockets onto israel as well. They have fired some rockets from the north but they havent targeted built up civilian areas so mother moving piece. Another moving piece. We continue to see rockets flying out of gaza, hitting as far as as jerusalem. Until recently they didnt have the rockets that could go that far, hit jerusalem and tel aviv. We expect nose rockets to be iranian. Rockets filing in both directions, hostages held captive in gaza right now and up to 100,000 israeli troops amassing to begin what could be a very, very brutal urban street to street battle. Maria. Maria and in fact Benjamin Netanyahu, Prime Minister of israel, said this will be a long war. Beabenjamin, thank you. New York Governor Kathy Hochul is slamming propalestinian protesters calls a demonstration had held in midtown manhattan yesterday ab abhorrent. Your reaction. What we saw in times square was stunning and something we talked about many times before, we look at this, look at what seems to be a failure of intelligence, the israeli and American Point and the open borders we have which we have known has been open, we know weve had folks from the middle east, we know we have cells, the concern needs to rise in the united states, what does this actually mean in a global picture when we have people inside the united states. Is that a possibility . Is the fbi actually looking at it . Has the fbi been distracted by chasing the political issues . This has to be a real focus for us and its a wakeup call for the world. For blinken and others to say we talk about the pr battle in the white house. How about waking up and realizing were in a bad situation and its the weakness projected by the Biden Administration, not a worry of pr, but its a weakness projected since afghanistan. Maria let me get your take on the u. S. s response to this because the Biden Administration dispatched a u. S. Carrier battle group, supplemented other u. S. Forces in the region, provided initial aid to israel. What do you think happens next and what is your assessment to the u. S. s response so far in terms of supporting israel . As far as the military assessment thats what we would expect, i think sending the Carrier Group closer in sends a message to others who you may want to get into this, syria and others, saying look, you let the hamas and iran, you funded hamas, hezbollah, theyre going to grow the battles. What were trying to say is you dont escalate this. The question is, will biden step in. I think thats the question that iran is weighing right now and others in that region as they go forward, to say what will be the military response. So far, we have not shown the resolve and right now theres been frankly a very tenuous relationship between the Biden Administration and netanyahu, that seems to be better now because of this situation, but our appeasement of iran especially with the state department and those in the middle east have really got to concern, the military aspect those be stepped up. Weve got to get the components so they can continue to protect from the vessels. I think biden has to stand up and say this is not something that were going to tolerate. Maria yeah. And that is why youre hearing congressional leaders bring up this appeasement from day one of the Biden Administration to iran. Its extraordinary to me that virtually everyone we speak with has said iran is behind this and weve got the current secretary of state Antony Blinken actually putting that into question. To me its extraordinary. Heres tom cotton with me yesterday. Watch. Its not just the 6 billion that was released from sanctions controls last month. Its 10 billion that was rehe leased from iraq into iran, its looking the other way on more than 80 attacks against american troops in the middle east or allowing iran to threaten shipping in the persian gulf, allowing iran without serious consequence to arm russia, to kill more ukrainians. Were releasing hundreds of millions of dollars to palestinian authorities at the beginning of this administration. Maria doug, your reaction . Yeah, its just again, lets walk this back quickly, go back to the afghanistan withdrawal where we had an appeasement factor with the taliban. Ive been saying for months now. Yes, the ukrainian situation, the russian situation is something we have to address. The china, taiwan situation is something we have to address. All along, afghanistan reverted back to pre9 11 days where you have the taliban, hamas, hezbollah, and iran which we seem to be ignoring and this administration seems to have a love affair in dealing with nonreal incidents when we have an issue in which you have to have its just an amazing part of appeasement going on that is very disturbing. Maria yeah. Mark tepper, the Israeli Defense minister is calling for a complete siege on the gaza strip, that is blocking food, blocking fuel, nothing on the gaza strip as the Israeli Military said it actually has gained control of much of the gaza region right now. Your thoughts on this Market Reaction . Frfrankly, im surprised we aret seeing a bigger selloff. Dow industrials at the lows of the morning, down 174 as Oil Prices Spiked, up 3 andahalf percent, mark. Its very surprising were not even down 1 on futures right now. I would think it would be down a lot more as well. I mean, theres certainly quite a bit of conflict going on in the middle east. Thats not good for stocks. Its obviously going to spike the cthe cost of oil which is gg to hurt consumers in the u. S. Which is going to hurt different corporations. So the market is facing a set of challenges with regards to whats happening over in the middle east but its also very challenged with regards to Everything Else thats underlying from inflation reaccelerating again to earnings expectations to somewhere around flat for this quarter, theres not a lot of positive catalysts that im seeing on the horizon for stocks right now. Maria we are just a couple days away from the start of a huge flow of Third Quarter earnings. That will likely also have a big impact. Lets look at market when we come back, were watching how markets are reacting this morning as the war on israel continues, our word on wall street panel is here to weigh in with the impact. Youre watching mornings with maria live on fox business. Well be right back. Explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Were traveling all across america talking to people about their hearts. Ooh, take this exit. Hows the heart . I feel like its good. You feel like its good . How do you know when its time to check in on your heart . How do you know . Let me show you something. It looks like a credit card, but it is the kardiamobile card. That is a medicalgrade ekg. Want to see how it works . Yeah. Put both thumbs on there. That is your heart coming from the kardiamobile card. Wow with kardiamobile card you can take a medicalgrade ekg in just 30 seconds from anywhere. Kardiamobile card is proven to detect atrial fibrillation, one of the leading causes of stroke. And its the only personal ekg thats fdacleared to detect normal heart rhythm, bradycardia and tachycardia. How much do you think that costs . Probably 500. 99 oh really . You could carry that in your wallet of course you can carry it in your wallet, right . Yes, yes. Checking your heart anytime, anywhere has never been easier. Dont wait. Get kardiamobile card for just 99 at kardia. Com or amazon. The first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. We just got an order from dinosaur, colorado. Start an easy to build, powerful website for free with a partner that always puts you first. Start for free at godaddy. Com maria welcome back. Time for for the word on wall street. Top investors watching your money. Joining me right 2340u is michael lee strategy founder, michael lee, also joining us is mark tepper. Mike, thanks very much for joining the conversation on this such an important day. We want to look at futures this morning. Which are selling off. The bond market is closed for the columbus day holiday. Futures are open. Futures are indicating that rates are spiking once again. The dow industrials down 168, nasdaq down 121, as Oil Prices Spike as well given the attacks on israel. That is threatening to inflate tensions in the middle east, a third of the worlds supplier of crude oil, mike. Your reaction to all these developments . Yeah, as a tremendous layer of uncertainty over markets which have been on shaky ground, basically since the middle of july and one of the big drivers of that has been the strength of the u. S. Dollar. Do we continue to see the strength of the u. S. Dollar in the face of this in a flight to quality, a bid for safety and how does that play out across the Interest Rate curve and across commodities. Im a little bit shocked that the price of oil is not up more, given irans involvement in this, what is that going to look like Going Forward . How do the saudis feel about this . What are they going to do production wise and jim ario mentioned earlier this morning, typically you have the Strategic Petroleum reserve for these types of scenarios but we have drained that by over 60 in basically for political means, not for National Security concerns the way its been used in the past. So a huge layer of uncertainty going into a an earnings season where the entire market is based on a reacceleration of Earnings Growth and reacceleration of Economic Growth which we have yet to be seeing so we were on shaky ground coming into today and the events over this weekend in israel i think have added to it further. Maria oh, for sure. The israel gaza issues here, the war, 1 1300 people dead is causg a lot of uncertainty here but mark we may very well get clarity with Third Quarter earnings with regard to our money later in the week, weve got pepsico expected to report tomorrow, foful load by delta ar lines on thursday, and big banks reporting the Third Quarter on friday. Weve got macro data coming out, weve got inflation data, september Producer Price index on wednesday, Consumer Price index out on thursday. How does this play into things and what are you expecting from the data. I wish i could tell you there were going to be great things happening this earnings season, that the Economic Data was going to be positive but i just dont see enough positive catalysts coming out of earnings season or the upcoming Economic Data to offset a lot of these negative risks that were dealing with right now. You know, we talked about the bond market being closed today. You look at whats happened to bonds over the course of the last several months, weve seen a very rapid resteepenning of the yield curve. Weve gone from like the negative 110 basis points i believe to maybe negative 22 basis points right now and typically when you see the resteepenning of the yield curve, that coincides with the onset of a recession. If you look at aback basket of stocks that typically do well during recessions, theyve been underperforming the s p 500 all year long until september. Now all of a sudden theyre treading water, theyre kind of running level with the s p 500 so it seems like investors are starting to brace themselves for the real possibility that things arent going to be as good as a lot of people are expecting. Everyone has been talking about a soft landing, people have pivoted from soft landing no landing at all, were going to be in an economic boom forever. I think we have serious issues we have to deal with for our economy. Maria what about higher Interest Rates, mark . The bond market is closed today for columbus day but market can participants are watching bond related Exchange Traded funds, those etfs will trade. That will inform us on rates and were looking at another spike in rates based on that. Yeah. And that spike in rates, its been very difficult especially on the shortend of the curve, its been difficult for banks to deal with that. They have to pay 5, 5 andahalf percent on money and theyre receiving 3, 4 on loans in return so its making for a very challenging situation for the banks and financials right now and then you just kind of look at the whole cost of borrowing, maria. Investors and consumers are really struggling to come to grips with this higher for longer phenomenon thats underway right now. We are not going to go back to 3, 4 Mortgage Rates any time soon and unfortunately a lot of consumers have become addicted to cheap money and its kind of engrained in their lifestyles and way of spending. Maria great point. We have to jump. Real quick, mike, final word here in terms of the 10 year at 4. 8 and two year at 5 , impact from your standpoint. Real quick. Well, i think the movement in 10 year from sub4 just before the beginning of september to close to 5 now is going to have a devastating impact across not only investors portfolio but the entire economy. When i look under the hood of all the data releases that have come out, what were seeing in rates and other Economic Data, i do not see good things ahead so hold off. I mean, the events of the weekend accelerate things to the downside. Maria we have the latest on the war in israel coming up. Mike lee thank you very much. Mark, youre sticking with us all morning long. Thank you for that. Quick break and then a the death toll is nearing 1300 people in israel and gaza. Congressman Michael Waltz is here to gives us the latest on the u. S. s plans to support israel throughout this war. Stay with us. Why choose a sleep number smart bed . Because only the sleep number climate360 smart bed lets you each sleep up to 13 degrees cooler or warmer on either side, while you both sleep at your ideal level of firmness, comfort and support. Your sleep number setting. And now, our new next gen smart beds have temperature benefits, so you sleep better night after night. Now at its lowest price ever. The allnew queen sleep number® c2 smart bed is only 880. Sleep next level. Shop for a limited time at sleep number. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. 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