Washington (AP) President-elect Barack Obama says the U.S. is facing an "extraordinary economic challenge." He's been on Capitol Hill to discuss his stimulus plan. The package includes up to $300 billion in tax cuts.

DETROIT (AP) Ford says its U.S. sales dropped 32 percent last month, while Toyota's fell 37 percent. Buyers are apparently continuing to steer clear of auto showrooms during the economic downturn.

GAZA CITY, Gaza Strip (AP) The U.S. has joined a chorus of countries pushing for a cease-fire in the Middle East. Today, Israeli forces have been attacking homes, mosques and smuggling tunnels in Gaza. Meanwhile, Hamas militants have been targeting Israel with rockets, including one that struck an empty kindergarten.

WASHINGTON (AP) President George W. Bush says Israel has a right to protect itself against Hamas militants. He says he's hopeful there can be a cease-fire. But Bush says no peace deal would work unless it forces Hamas to stop its attacks.

PARIS, Texas (AP) Fire officials are confirming that five men have died in a fire at a homeless shelter in northeast Texas. They say the early-morning fire was confined to an area where people slept.

(Copyright 2009 by The Associated Press. All Rights Reserved.) APNP 01-05-09 1247CST | save this article / add to your favorites list