make news this morning, break through. >> a developing story on capitol hill. a nearly done deal allowing an average american worker to keep about 1,000 bucks a year. on alert, after a string of bombings, concern that it could strike inside the united states. american warships entering the waters off iran. lipstick and your health. the discovery of lead in hundreds of lipsticks. and top dog, the little guy with the funny face, named best in show. good wednesday morning, everyone.

i'm paula faris. >> and i'm rob nelson. time is running out for the payroll tax cut that benefited about 160 million american workers. it expires at the end of the month. >> late last night, a bipartisan group in congress signaled they have broken through and found way to keep it going. we get details from tahman bradley. >> reporter: congressional ne gauche yarts have reached a tentative deal that would save the average american about 1,000 bucks. it could be revealed later today. it would extend the payroll tax cut for the rest of the year and renew jobless benefits for the long-term unemployed. the deal could be a tough sell for many conservative republicans, elected on a promise to cut spending. the payroll tax break would add to the deficit. some gop lawmarks are tired of

sparring over the issue. >> we get this done. >> reporter: word of the agreement came late tuesday. earlier in the day, the president pleaded with dong strike a deal. >> pass this middle class tax cut. pass the extension of unemployment insurance. do it before it's too late. i will sign it right away. >> reporter: both sides made concessions. the plan reveals some provisions of the obama health care law, and abandons republicans hope to pay for the reduction with spending cuts. if negotiations stay on track, it could come this week. >> a lot of grateful americans. also, new details on the death of whitney houston. the investigation is now focused on the doctors who wrote her prescriptions. those doctors, along with the

pharmacies that filled the prescriptions, could soon get sub peen thats. her funeral will be at the church in newark where she sang as a little girl. the family has decided against a public memorial. there are fears that tensions with iran could lead to terrorist attacks here at home. the nation's police are being warned to be on heightened alert. this comes after several bombings by iranian agents. israel blaming iran for an attack on monday in india. the u.s. thinks that the same kind of terror attack could happen in the united states. iranian boats have been shadowing a carrier strike group from the u.s. martha raddatz is on one of the

ships. >> reporter: it was just after dawn when the three u.s. ships began the long, tense transit through the strait of hormuz. months ago, they were warned not return. >> you want to be at a max state of readiness. >> reporter: we're on the lead ship, the uss sterett. on the bridge, the concentration is intense. >> set a course. >> reporter: surveillance tracking everything that moves. but the iranians were shadowing us silently as well. drones, navy vessels, and a patrol plane flying overhead. the shipping lane is only about two miles wide. there's little room to maneuver. that's the uss abraham lincoln behind me. these transits are routine. but miscalculations on either

side could threaten the ships and close down the water way and put the world's economy at stake. >> our thanks to martha for that report. now to politics and the santorum surge. he speaks to overflow crowds like this one in idaho last night. he says his campaign is in talks to get secret service protection after an event on monday turned rowdy when occupy protesters showed up. 34% of americans now say they feel the economy is improvi improving, up from 28% last month. and the president's approval ratings have been going up as well. the president is talking up the economy on a three-day western swing starting today in milwaukee. yesterday, he welcomed china's president, xi jinping.

the talks were wide-ranging, but the economy was at the core of the talks. mr. obama stressed the need for china to show economic responsibility. >> we want to work with china to make sure everyone is working by the same rules of the road when it comes to the world economic system. >> vice president xi also received warm welcomes. he traveled to iowa today where he was 25 years ago early in his career. he's the leader of the free world, the president, but he's also michelle's husband. he took his wife out to valentine's dinner last night. he wished her happy valentine's day on twitter. he signed it bo, which means it's from him, not one of his

handlers. >> make sure the love notes come from you, not one of your assistants. we have rain from san francisco down to san diego. heavy snow in the mountains of southern california, nevada, and the rockies. winds and hail on the gulf coast from houston to new orleans, jackson, mississippi, showers and thunderstorms around little rock, memphis, kansas. snow in northern minnesota. >> a spring-like 54 here in new york. 40s from minneapolis to indianapolis. and just shy of 50 in seattle. 41 in salt lake city. 63 in phoenix. after the break, new questions about whitney houston's fortune. was she really almost broke? and fresh concerns about makeup and your health. 400 shades of lipstick found to contain lead. what you need to know. and starbucks hits the slopes. not a drive through. this one is a ski-through.

welcome back, everyone. last year was a good one for the airline industry. the nation's biggest carriers did well in on-time performance. the record in particular for this year was the best in 17 years. the ratio of bumped passengers was at an all-time low. the baggage performance was the best on record. 99.7% was delivered on time.

you probably had to pay $120 have it transported. the mark of a popular anti-cancer drug is sending warnings to medical practices. roche says counter fits of avastin are being tosold in the u.s. the food and drug administration has found trace amounts of lead in 400 shades of lipstick. the fda says there's no safety risk or limits for how much lead is allowed. a consumer group says it's time to, well, get the lead out. >> i don't want lead on my lips. overseas markets are up. tokyo's nikkei average gained 208 points today. hong kong's hang seng rose 447 points. in london, the ftse opened lower. on wall street, the dow up 4 points. the nasdaq rose less than half a

point. something new for skiers that want a jolt of joe without having to take off their skis. a starbucks has opened in squaw valley. after picking up a latte, customers can chill outside. it gives new meaning to getting a coffee to go. >> starbucks taking over the world one street corner and mountain at a time. up next, the pastor that married whitney houston and bobby brown talks what about he'll say at her funeral on saturday. and the lejds of lin grows. another spectacular performance last night.

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it looks like a large room being covered. tourists have been walking through the ice columns. they've described it as magical. wet on i. 10 from houston to new orleans. showers from oklahoma city to nashville. it's icy on i. 70 in the rockies. wet in southern california, especially i-5 from l.a. to san francisco. airport delays possible in houston, new orleans, dallas, memphis, and l.a. returning to one of our top stories, new details on the final good-bye to whitney houston. it will be a private service at the newark church where she sang as a child. >> a long-time family friend will give the eulogy. >> if you scratch the surface, it didn't take you long the find

out she was still that little girl from new jersey. she wore fame. and she was wonderful in it. but she was always that little girl from new jersey. i think that's what they'll reflect. >> marvin winans is also the pastor that married whitney houston and bobby brown in 1992. there's growing concern over bobbi kristina. >> her father issued a statement saying she's doing much better. we continue to provide love and support. but the website tmz has reported he's not been allowed to see her. she's been cared for by family in the l.a. area. >> houston's es sait tate is likely to get major boost based on a resurgence of album sales. insiders say the singer died deeply in debt, despite a one-time fortune. she lost two thoems foreclosure

years back. and her memory loomed large last night on "glee," purely by coinciden coincidence. >> it just happened to feature amber riley belting out her signature hit. ♪ and i will always love you ♪ i will always love you >> producers dedicated the episode to houston with a card at the end of the show. can't believe that was purely coincidental. we'll have more on her death comes up on "good morning america." police in florida are searching for an airline passenger that made off with a pricy rolex. a woman forgot her $6500 watch in a bin at a security check point. by the time she went back for it, the man behind her scooped

it up and stuffed it in his bag. a $1,000 reward is being offered for the information to lead to the arrest of that thief. his skill has been called linsane. mike yam has the highlights. linsanity moving from new york to toronto. the raptors hosting the knicks. looking for a sixth straight win. lin driving. eight turnovers on the night. that was the bad for linsanity. but there would be plenty of good. raptors up by nine. calderon, how about that? he had 25 coming off a career-high 30 against l.a. in the fourth, amar'e stoudemire. the first game back since his brother was killed in a car

accident. the rookie with great job against calderon. the second half. next possession. jeremy lin hanging in the air, and the and one. he made the free throw. 27 points, 11 assists for lin. tied at 87-87. the three is up, and the three is good. he knox it down. after the game, he said he turned around to mike dan tony before the shot and asked if he could have the iso. good decision from d' antoni. the raptors can't hold on. dwyane wade and the heat facing the pacers. lebron james, the steal, to wade, back to james. you know what happens here. 24 points, 9 rebounds, 7 assists and 4 steals for lebron. james, boom, finish it off.

the heat win it in indiana. that will do it for this update. i'm mike jam. >> thanks, mike. up next, a pooch-themed pulse. and the super bowl of dog shows with a surprising win for best in show. what's this? [ male announcer ] quaker oatmeal squares

have 46 grams of whole grains... mmmm. ...and a touch of sweetness. you'll be delighted to discover how good they taste. get your free sample of quaker oatmeal squares on facebook. all right, it's time to check "the pulse."

beginning with the most talked about dog in the world. >> last night's best in show in madison square garden. >> best in show at the 136th annual westminster kennel club america's dog show is, the pekingese. >> that's malachy taking the title. the furry 4-year-old with the squished in face beat out the other breeds. twitter erupted in outrage overnight. >> one person calling him a muppet. and an alien foot stool. >> he's feeling it, too. >> some other not so fancy kay nines are getting some interest this morning. look at these dogs under water. >> only a few months ago, seth could barely pay his bills.

now he can't keep up with the demand for the unique photos. his website is inundated with over 100,000 hits. if you're looking to spice up your relationship. he's an offer you might want to consider. >> a cincinnati company is offering couples a chance to join the so-called mile-high club. for about 500 bucks an hour, they could do as they may. the only thing separating them from the pilot is a small curtain. >> it's not just about sex on plane. it's about romance, hence the chocolate and champagne. i guess you can fly the friendly skies. >> friendly indeed. >> is that why they call it the nasty 'nati? for everyone else, the pride of harvard and now new york, we hear from jeremy lin's biggest

fans. we're right back on "america this morning" this morning. >> i gotta call cincinnati. that'll be... $973.42. you know, your rates and fees aren't exactly competitive. who do you think i am, quicken loans? [ spokesman ] when you refinance your mortgage with quicken loans, you'll find that our rates and fees are extremely competitive. because the last thing you want is to spend too much on your mortgage. one more way quicken loans is engineered to amaze.

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your top of stories, congress is expected to announce a deal that would allow you the keep more of the money you make. a bipartisan committee has found way to extend the 2% payroll tax cut. security is being tightened here in the u.s. after iran launched attacks around the world aimed at israelis. whitney houston's famgly has decided against a public memorial for the singer. mild here in the northeast. showers meanwhile in florida. severe storms along the gulf coast. snow in the rockies. and some rain from san francisco to san diego. and finally, we heard earlier about jeremy lin's amazing game-winning three-pointer against toronto.

>> it's the last in a string of accomplishments for a young man who has gavin new york fans a bad case of linsanity. rachel nichols reports. >> reporter: in a town that loves a good story, jeremy lin is great one. an yarn american out of harvard. undrafted. cut twice. only starting with the knicks after injuries to other player ps. he was sleeping on teammate's couch. as lin began torching opponents, outdoing kobe bryant and the lakers, new york fell in love with him, touching off a nation-wide case of linsanity. >> the attention is definitely a blessing and a curse at the same time. me and my family are pretty low-key. sometimes it can be overwhelming. i recognize it's a unique opportunity. a once-in-a-lifetime opportunity. >> the magic of jeremy lin continues. >> reporter: his scrappy and

humble approach is part of what's captivated so many. he's helped push the mad sison square garden stock to an all-time high. fans suddenly can't get enough. >> i'm wearing his t-shirt right now. jeremy lin. >> the level of buzz, if 10 is the highest, he's at 11. >> reporter: nowhere is that more evident than chinatown. >> we want to be like him. >> reporter: he's also a merchandising phenomenon. in new york, retailers can't keep his jerseys in stock. have you gotten your own place yet? are you off all these people's couches? >> maybe. it's a lot. it's a lot right now. but think i'm getting used to it a little bit more. i don't care how long it lasts as long as we win.