which is to say this big thinking art project ended as it should be. the iraq war is over. iraq is a sovereign nation. one of the very small things that means is that they get their stuff back too. is that t stuff back, too. "first look" is up next. down to the wire. lawmakers agree on a trillion-dollar deal to avoid a government shutdown. final words. republican presidential hopefuls face off in the latest high-stakes debate before the iowa caucuses. and the escape clause. what led one young man in california to get stuck in a tight spot. good morning, everyone, i'm lynn berry. those stories and more are straight ahead. this is "first look" on msnbc. and we're going to begin this morning with a shutdown

averted. now, last night congressional negotiators signed off on a trillion-dollar spending package, just one day ahead of a deadline that could have led to another government shutdown. nbc's tracie potts joins us with the details on that and a massive defense bill headed to the president's desk. tracie, good morning. >> reporter: lynn, good morning. good morning, everyone. here's how they were able to work that budget deal out. democrats agreed to delay some energy efficiency rules that were due to kick in soon, and republicans dropped their restrictions on people sending money and making visits from this country to cuba. those were two big sticking points. saturday, it looks like we will be able to fund the government through next september. now, included in this, senate majority leader harry reid says may be a plan "b" to extend that payroll tax cut for two months as well as unemployment benefits and medicare payments as well. without it, doctors are looking

at a 27% cut. so this would fund ten departments, most of them would be reduced as a result of last summer's deal. the house and the senate expected to approve this today. also, now headed to the president's desk, a $662 billion defense bill for president obama's signature. it would fund soldiers, weapons, national security. it is below the president's request, but they were able to work out an issue with the white house regarding military custody for terror suspects. lynn? >> all right, tracie, thanks so much. in an exclusive interview last night, house minority leader nancy pelosi talked with ed schultz about the extent house republicans were willing to go in negotiations for a payroll tax cut and to prevent a government shutdown to protect a small amount of wealthy americans at the expense of millions of those less well off. >> well, it was interesting that they would say in order to give a tax cut, payroll tax cut, to 160 million americans, which is

very important to those families. $1,500 in the pockets of 160 million working americans, that injects demand into the economy to create jobs. it's not only important to the families. it has macroeconomic impact, as do the extension of the unemployment insurance. but again, don't touch one hair on the head of the wealthiest people in our country making 300,000 wealthiest families. so, again, it's an issue that we will have with us because we're on two different paths about fairness and opportunity in our country. >> don't miss "the ed show" weeknights at 8:00 eastern only on msnbc, the place for politics. to the presidential campaign trail, it was all about newt gingrich last night as they piled on the front-runner at the final debate before the iowa caucuses.

nbc's steve handelsman has that story. >> reporter: newt gingrich, most people see him as more conservative than mitt romney. in iowa, the controversial former speaker claimed he's more electable next november, too. >> i believe i can debate barack obama, and i think in seven three-hour debates, barack obama will not have a leg to stand on in trying to defend a record that is terrible. >> reporter: romney's main claim is electability. because he was a businessman. >> i can debate president obama based upon that understanding. and i'll have credibility on the economy when he doesn't. >> reporter: libertarian ron paul is polling a close third in iowa. >> fortunately for the republican party this year, probably anybody up here could probably beat obama. >> reporter: they all aimed at beginning rich who advised mortgage lenders before the meltdown. >> when the speaker had his hand out and he was taking $1.6 million to influence senior

republicans to keep the scam going. >> reporter: he denied it but barged on to a remake of the court system. >> as an historian, i may understand this better than lawyers. >> reporter: a moment of reflection. >> i sometimes get accused of using language that's too strong. >> reporter: romney's called gingrich zany. polls call him the leader of this pack. i'm steve handelsman, nbc news, washington. also, there are some sobering new numbers this morning, a lot of them hard to believe. it goes to just how this ailing economy is affecting the nation and the growing gap between the rich and the poor. according to the census bureau, one in two americans is nauert low income or poor. that is 146 million people. over the last 30 years, wages for low-income workers have fallen or stayed flat while earnings for the top 5% of households have soared. meanwhile, a separate study says a record number of children in the u.s. are now homeless.

the study by the national center on family homelessness puts the number at 1.6 million. that's 1 in 45 kids. it's up a staggering 38% from 2007 when the economic crisis began. well, here is your first look at some of the other news going on around america today. a family of a 14-year-old pennsylvania girl tasered by a police officer has filed a federal lawsuit claiming excessive force. now, police officers say the officer struggled with the teen as she resisted arrest for disorderly conduct and several other charges before he was forced to fire on her. one person is dead and another was seriously injured when a small plane crashed outside an arizona home. the single-engine aircraft was only a half mile from the airport when it went down in the front yard. luckily no one on the ground was hurt as the pilot managed to avoid hitting nearby homes. and finally, missing his curfew caused one young man to get himself into a sticky situation.

a california fire crew was called in to remove the guy who attempted to avoid getting in trouble by sneaking down the chimney. i don't know where he thought of that idea. family members became aware he was stuck after hearing his cries for help. the man was rescued, free from injury, but was left with a lot of explaining to do. look at mom right there. that's not going to work out so well. and now for a look at your national weather, we turn to nbc meteorologist bill karins with your weather channel forecast. bill, you have to leave a window cracked. it's so simple. it's so simple. i know no teenagers are up at this hour, so no negative influen influence, but come on. >> the mom wasn't giving him a hug and saying, i'm glad you're okay. >> no. >> yeah. you're a bad influence, lynn berry. see? i knew you were. good morning, everyone. i've got a little halo over my head. let's look at the snow cover across the country because the temperatures have been very warm. the lack of winter has been very pronounced everywhere around the nation. in this map, if you have blue

where you live, mostly over the rockies, extreme northern portions of minnesota, wisconsin and northern new england, this is where there's some snow on the ground. everywhere it's like the earth color tones, the green, that's where there's just bare ground. almost the entire lower half of the state of michigan has no snow. i mean, the only portion of michigan with any snow at all is the upper peninsula. and much of new england has no snow on the ground. only 25% of the country right now with snow. there's no snow on the way. for most people it will not be a white christmas unless you live in the mountains. ridiculously warm, 59 in washington, d.c. it's 54 as far north as boston. we've got rain showers going through new england. the ski resorts are banging their head on the desk wondering when this palt determine's going to flip. at least the good news for ski lovers, it's going to be cold this weekend especially, saturday night and sunday night here in new england, so they'll be able to make a lot of snow, but no natural snow coming. as we go further south, it's a

warm day in the southeast, but you do need the umbrella from little rock to shreveport. light rain through memphis and nashville. much of the state of tennessee today will have periods of light rain. here's your forecast on your friday. we're going to see a windy day today up in new england after those rain showers move out. temperatures will be dropping during the day. we'll also see a decent day in chicago. maybe some flurries in minneapolis. and there's that light rain from louisiana, mississippi, alabama and then tennessee into the carolinas. even areas of virginia you'll need your umbrella. lynn, weekend forecast is coming up. for many of us, it's more of the same. >> all right. bill, thanks so much. also coming up, unemployment dives. stocks rise. and just what the heck happens on a quadruple witching day? your first look at this morning's business headlines is straight ahead. coming up, the falcons soar and the nets' owner wants to run the largest country in the world. you're watching "first look" on msnbc.

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welcome back to "first look." here's some of the top stories making news this morning. the justice department says arizona sheriff joe arpaio and his deputies violated civil rights laws by engaging in racial profiling of latinos and making unlawful arrests in their bid to crack down on illegal immigrants. arpaio called the move politically motivated. authorities say chicago bears' wide receiver sam hurd has been arrested with a kilogram of cocaine in a drug sting operation. federal prosecutors say hurd wanted to buy five to ten kilos of coke and 1,000 pounds of marijuana to distribute in chicago. in india, 162 people are dead and dozens more have been sickened by bootleg liquor containing toxic methanol. 12 suspected bootleggers have been arrested. controversial reporter and author christopher hitchens has died of pneumonia as a

complication of ee so far gal cancer at age 62. hitchens, an englishman who roamed the world's hot spots as a news magazine correspondent moved to the u.s. in the '80s and became increasingly identified with atheism after penning several best-sellers including "god is not great." and an unpublished charlotte bronte manuscript has been snapped up by a french museum for a record $1.1 million at auction. and now here is your first look at how wall street will kick off the day. the dow opens at 11,868 after rising 45 points yesterday. the s&p gained 3. the nasdaq eased up 1. taking a look at overseas trading this morning, in tokyo, the nikkei added 24 points while in hong kong, the hang seng climbed 258. well, stocks rose thursday as for at least one day traders decided they weren't going to worry about europe. there was still plenty to worry about.

christine la guard called the world's economic outlook, quote, quite gloomy and called for action from all countries to head off global depression. but there was good news here, and it was just too good to ignore. unemployment applications fell to a 3 1/2-year low. new york state manufacturing rose to its highest level since may. new factory orders in the mid-atlantic surged. bellwether fedex shot up on expected profit. novellus soared. michael kors soared 21% in its debut. still yet another big company, honeywell backed off its forecasts. morgan stanley will fire 1,600 to cut costs. fitch cut long-term ratings on barclays and credit suisse by two notches and bank of america, bnp, citigroup, deutsche bank rose by one.

cablevision sparked speculation it may be a takeover target. one analyst called it, quote, one of the biggest bombshells in recent history. the average 30-year fixed mortgage rate has matched its record low. today is quadruple witching day. equity options expire, as do stock index futures, stock index options and individual stock futures. the stock to watch today is zinga. its ipo priced at $10 a share. and finally, the $116 million taken in by christie's elizabeth taylor jewelry auction makes it the most valuable private jewel collection ever sold. coming up, another serious concussion injury in hockey. and sports mixing with politics. plus, a falcon can easily overpower a jaguar, at least on the football field. your first look at sports is straight ahead. you're watching "first look" on msnbc. you gotta come see what's new. c'mon! tadaaa! welcome to haircolor heaven.

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welcome back to "first look." i'm lynn berry. in sports, the atlanta falcons made a serious statement last night against the jacksonville jaguars, that they want to be taken seriously as postseason contenders. here's nbc's fred roggin. >> good morning. the falcons have waited all season to put together a complete game. well, that wait is over. simply dominated the jaguars in atlanta, capped off their first drive of the game with a touchdown. matt ryan to julio jones, 29 yards to the house, falcons, 7-0. to the second and the jaguars turn it over deep in their own end and michael turner made them pay. untouched to the end zone.

falcons soaring high, up 27-0 at the break. many of you play fantasy football, you're starting your playoffs this week. if you have ryan and roddy white, your team is looking pretty good. white's second touchdown of the game made it 41-0. ryan finished with three scores. falcons routed the jags, 41-14. nhl, a concussion has taken out another future hall of famer. the flyers chris pronger is shutting it down for the rest of the year because of post-concussion syndrome, just the latest in a handful of players that have missed significant time. the games must go on and the flyers have been getting a lift from wayne simmonds scoring a goal in four straight, another one last night. flyers won it, 4-3. capitals scoreless. ovechkin unleashed a rocket with 14 seconds left. that's why he's one of the best in the game. capitals starting to turn things around, they shut out the jets, 1-0.

dwight howard staying p up in orlando. nets' owner is trying to acquire something much bigger. the russian presidency. yep. he's owned the nets for about a year. now he wants to take over russia. the savvy billionaire has set his sights on beating vladimir putin in the russian election. no word if fellow nets owner and rapper jay-z will be his running mate. that's your first look at sports. have a great weekend. i'm fred roggin. now for another look at the weather. let's check back in with nbc meteorologist bill karins. >> first things first, enjoy the nice warm air while it lasts in new england. colder as the day moves on. 59 in d.c. back in pittsburgh, it's 35. when you have temperatures that are that close together, distantwise, but that far apart temperaturewise, it's windy. wind gusts of 40 miles per hour now in philadelphia, 40 in albany. very gusty-type winds for this type of morning. it will get your attention. as the day goes on, it will continue to be windy in new

england. these temperatures dropping. will end up in the 40s in most areas which is still mild but not as warm as when you're going to work. through the weekend, today, a little light rain in the southeast, especially tennessee into areas of virginia and north carolina. some snow flurries in minneapolis. that's about it. much of the country including the west coast, very quiet on saturday. some showers in san antonio. but pretty mild temperatures. 40s and 50s most locations. even the northern half of the country is in mid to upper 30s which is above average. by the time we get to sunday, still a cold spot, definitely new england especially in the morning. the afternoon, only 29 in boston. that's the cold spot. everyone else is looking at a fairly nice weekend. that's good for all the holiday errands. >> lovely. there are plenty to be had. a big boost for the box office and a silent film makes a lot of golden globe noise. plus, his first official foray into primetime network television, and it's already creating excitement and criticism. your first look at entertainment

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the national transportation safety board this week called for an all-out ban on cell phone use while driving. headsets, bluetooth, everything would be banned. everything. i read that on my iphone as i was coming into this work this morning. if president obama and congressional republicans don't make a budget deal by midnight friday, the government could should down. that's what they said. if there is a shutdown, 800,000 nonessential federal employees would be spended. maybe that's our budget problem right there. we have 800,000 nonessential

federal employees. maybe that's -- just saying. and as you know, donald trump has canceled his debate because he says of a possible conflict of interest. really? conflict of interest in how about lack of interest, okay? i think lack of interest. yeah, i think that's more like it. >> all right. well, today jay welcomes gop presidential candidate ron paul, "fear factor" host joe rogan and musical guest chris cornell. that's "the tonight show with jay leno," weeknights at 11:35/10:35 central. time for your first look at entertainment news. after two super-low weeks of attendance at the box office, hollywood is happy to see "sherlock holmes." robert downey jr. and jude law as the crime-fighting pair of holmes and watson. it's expected to take in over $60 million. the new family entry won't do so bad either. second place with around $35

million should go to "alvin & the chipmunks: chipwrecked." get it? the third installment. >> alvin, simon, theodore. >> the silent form "the artist" led the golden globe nominations with six including best musical or comedy, best director, best screenplay, best actor and best supporting actress. where have i been? i haven't even heard of this movie. living under a rock apparently. finally, howard stern officially signed on as judge for nbc's "america's got talent." already the parents council -- the parents television council complained about the shock jock's appointment, but show boss, simon cowl, told tmz he thinks stern is way too smart to cross the line on the show saying, quote, he's not stupid, this guy. this guy. will you watch? >> you know something? i will watch the first couple because i want to see what he says and how he acts. >> which is probably why they brought him on the show. you know, i'm sure there's a seven-second delay. so fortunately for anyone -- >> they're probably going to

have backup seven-second delay. they'll have two people on the buttons. >> maybe three. >> i'm lynn berry. that's it for "first look." but stay tuned. "way too early with willie geist" starts right now. newt gingrich, center stage as the front-runner at the final debate before the voting begins in iowa is hammered on his electability and his conservative record as mitt romney tries to claw his way back to the top of the field. the question is, will rick perry's comparison of himself to tim tebow turn the tide for him? back in washington, congress works on a deal to avert a shutdown of the government. and the much debated payroll tax cut extension could be rolled up in the solution. the question is why does it always take an 11th hour crisis to find a solution? and one of the great iconoclastic maddening minds of our time leaves us. the question is, where is christopher hitchens drinking and debating this m