Wednesday morning headlines

Falling stocks: After yesterday's big gains, investors might be looking for some quick profit-taking. Dow is down about 70 points.

Standoff on payroll tax cut: House Republicans are digging in after voting to effectively block an extension of the tax cut, along with jobless benefits. From the NYT:

By turning down a bill that was overwhelmingly supported by both parties in the Senate as well as the White House, the conservative House majority that has spent the year inciting combative legislative showdowns is now staring over the brink, standing fast against legislation with significant financial consequences for nearly every American household. Over just a few hours on Tuesday, President Obama held an impromptu news conference to sharply criticize them, the House floor exploded with partisan derision and many members then headed for the airports, not knowing how or if the legislative battle would end.

Losing jobless pay: The impasse in Congress has left more than 3 million out-of-work Americans in a pickle because their unemployment benefits could be cut off. From the NYT:

The cornerstone of the program, regular unemployment insurance benefits, provides up to 26 weeks of assistance financed by the states. In states with high unemployment, jobless workers may be able to get up to 73 weeks of additional benefits, financed by the federal government, for a total of 99 weeks of aid. House Republicans would reduce the maximum to 59 weeks.

California leads in job growth: The state had 233,000 more workers on payrolls in November than for the same time a year earlier. Texas was second in growth. (OC Register)

Mixed results at KB Home: The L.A.-based homebuilder reported a 20 percent drop in fourth-quarter net income, but revenue was up because of more home deliveries and a higher average selling price. (AP)

Housing bust even worse than first thought: U.S. home sales from 2007 through 2010 were revised downward by a whopping 14 percent, according to the National Association of Realtors. The new numbers show that 2008 was the worst year. (Real Time Economics)

B of A nears Countrywide settlement: This involves a Justice Department probe into whether the mortgage giant violated fair-lending practices. The deal will include compensation to Countrywide customers. (Bloomberg)

Wendy's inches to #2: Looks like Burger King will slip to third in the burger wars - despite having more stores than Wendy's. From the WSJ:

Wendy's fortunes have been revived since investor Nelson Peltz's Triarc Cos. bought the chain in 2008. Much the way McDonald's has broadened its menu and remodeled its restaurants, Wendy's has upgraded its menu, changing the lettuce in its salads and softening the edges of its trademark square burgers. It has also raised some prices. The changes come amid intensified competition for market share in the fast-food industry, as room for restaurant growth has dwindled and the wobbly U.S. economy has prompted many to eat at home instead.

Laker-Clipper game sets record: The Monday night exhibition drew 509,000 viewers on NBA-TV, the most-watched preseason game in the channel's history. (AP)