From NPR News in Washington, I'm Lakshmi Singh.

Israeli media are reporting that the Israeli cabinet may be considering mobilising as many as 75,000 reservists in an escalating conflict with Palestinians in Gaza. This as reports emerged from the region today of rocket fire aimed at Jerusalem. The BBC's Richard Galpin has details from Jerusalem.

We have seen and heard the air raid sirens here, and it came as a shock to everyone. This is the first time that there has been this kind of attack on Jerusalem in many many decades. The police are confirming and in fact there were two rockets fired towards the city from the Gaza Strip. We understand that one landed near the city in open land and one also landed near the city, but actually also close to an Israeli settlement. So this is a pretty significant moment in this escalating crisis.

That's the BBC's Richard Galpin reporting from Jerusalem.

Lawmakers investigating what the CIA knew before, during and after the attack on the US consulate in Benghazi, Libya in September heard today from the agency's former director David Petraeus. He addressed questions from the House and Senate Intelligence Committees behind closed doors. Republicans accused the administration of knowing much sooner than it initially indicated that the attack was the result of terrorism and failed to provide better security to the consulate ahead of the attack.

President Obama and congressional leaders have embarked on negotiations to avoid the so-called "fiscal cliff." During his first meetings with the Republican leadership since reelection, the president urged all sides today to cooperate.

"What folks are looking for, and I think all of us agree on this, is action. They want to see we are focused on them, not focused on our politics in Washington."

House Speaker John Boehner was also pledging compromise today.

"While we are going to continue to have revenue on the table, it's going to be incumbent for my colleagues to show the American people that we're serious about cutting spending and solving our fiscal dilemma."

Americans face spending cuts and the expiration of Bush-era tax cuts at year's end if there is no deal with Congress. In a rare departure from that heated rhetoric that often comes with these budget battles, President Obama wished Republican House Speaker Boehner a happy birthday as the men shook hands.

Stocks opened slightly lower on Wall Street, Dell and Smucker falling after their earnings reports disappointed investors. Dell dropped 5% after the company reported late Thursday that its financial performance continued to deteriorate in the third quarter. But stocks have since picked up after the announcements from the congressional leaders. At last check, Dow was up 30 points.

This is NPR News.

The maker of Hostess CupCakes, Twinkies and Wonder Bread is going out of business. NPR's Jeanine Herbst reports Hostess Brands blames a strike by its second largest union.

Workers walked out after rejecting a contract in September that cut wages and benefits. The company was trying to emerge from a Chapter 11 bankruptcy filing and told union workers if employees didn't return to work by yesterday, the company would be closed. But union leader Frank Hurt says the company's problems are the result of  a decade of financial and operational mismanagement. The 82-year-old company will sell its iconic brands and close 33 bakeries and more than 500 bakery outlet stores around the country along with the distribution centers. Jeanine Herbst, NPR News, Washington.

The Yugoslav war crimes tribunal has overturned the convictions of two Croatian generals serving time for war crimes in the 1990s Balkan War. Teri Schultz has more from Brussels.

General Ante Gotovina was the most senior Croatian military officer to be accused of war crimes in the breakup of the former Yugoslavia. He and fellow General Mladen Markac received 24 and 18-year sentences for crimes against humanity and trying to drive ethnic Serbs out of Croatia. It's one of comparatively few cases alleging war crimes against Serbs. But appeals judges have invalidated by 3-2 the previous ruling that there had been a Croatian conspiracy against Serbs. Presiding Judge Theodor Meron further ordered.

The immediate release of Ante Gotovina and Mladen Markac.

Cheers from the observation area could be heard in court, and in Zagreb crowds erupted in elation. But in Belgrade Serbian leaders are calling decision "scandalous" and a total loss of credibility for the court. For NPR News, I'm Teri Schultz.

I'm Lakshmi Singh, NPR News in Washington.