tax relief. an early christmas gift as house republicans cave in and agree to extend the payroll tax cut. >> may not have been the politically the smartest thing in the world but let me tell you what. i think our members waged through a good fight. economic bump. shoppers give the economy a boost as unemployment claims dip. southern storm. extreme holiday weather flips cars over and leaves thousands without power. now the same system stretces into new england. captioning funded by cbs this is the "cbs morning news" for friday, december 23rd, 2011. thanks for joining us.

i'm drew levinson. in the end, house republicans were taking just too much heat from their constituents and their own party. so they have agreed to go along with a short-term extension. both the house and senate are expected to vote today. terrell brown is in washington with the latest. good morning to you, terrell. >> reporter: drew, good morning. you said the key word and that is expected to approve this deal today. republicans still have the opportunity to reject this, although that isn't likely. had this not happened, millions of americans would have been hit in the pockets. house republicans fall in line today. >> may not have been the politically the smartest thing in the world but let me tell you what, i think our members waged a good fight. >> reporter: the gop caved under growing pressure from both parties on thursday agreeing to accept a two-month extense of payroll tax cuts and unemployment benefits. house speaker john boehner informed members in a conference call last night and refusing to

take any questions. >> sometimes, it's hard to do the right thing and sometimes it's politically difficult to do the right thing. >> reporter: both the house and senate are expected to pass the measure today. it extends the tax breaks and long-term unemployment benefits through february 29th. the agreement marks a victory for president obama. he made extension at the end of the year priority. even putting off his christmas vacation to hawaii. he applauded the compromise in a statement saying, because of this agreement, every working american will keep his or her tax cut, about a thousand dollars for the average family. that's about $40 in every paycheck. the battle isn't over yet. as part of the agreement lawmakers try to hammer out a year-long deal when they come back in january. >> let us hope we can turn the page and start working together for the good of the american people in 2012. >> reporter: but with the same congress returning in the new year, some fear the gridlock will only continue. and the talk here in washington is just that, with this being an election year, some things a

tense atmosphere in washington will continue to be tense for some time to come, drew. >> as you look at this, who are the winners and losers in all of this? >> reporter: i think the clear-cut winner you can say is certainly president obama. remember, this payroll tax extension he was trying to drum up support for that and he won the image battle painting republicans being out for the rich and not the middle class. had this deal not gone through, consumer confidence would have certainly gone down. losers, you could say john boehner showing weak in the rank of the house debating between tee party republicans and when it comes to tea party republicans they could be losers saying cher too rebellious and not willing to compromise. >> certainly interesting to watch all week long. terrell brown in washington, thank you. the latest news on the economy is that it's showing signs of life. the number of americans filing for unemployment benefits last week, dropped to 364,000.

that is the fewest number in two and a half years. as anthony mason reports, consumers are in a holiday groove. >> reporter: the mood at the mall is brightening. >> i guess i'm more in that christmas spirit this year. >> thank you. >> reporter: this past saturday, shoppers spent $26 billion. >> feeling great! >> reporter: a record for the last full saturday before christmas. >> so i'm spending more on others and more on myself. >> reporter: in atlanta, shoppers like bobby duffy are confirming what surveys show that consumers are feeling better about the economy. >> this year, people seem more confident about the future. >> reporter: employers are more confident too. in your gut, how do you feel about the u.s. economy? >> i feel the u.s. economy is getting better. >> reporter: steve tiffence long island company makes camera filters. >> we have taken the approach to increase our temporary staff. >> reporter: he has added 20

workers this year, a 10% increase but he wants the situation in europe and washington to stabilize. & >> then we will start putting more permanent people on. >> reporter: weekly first-time unemployment claims have been falling. it looks like we are past the threat of another recession. >> absolutely. >> reporter: economist ellen ventner predicts the economy will grow 2.3% next year. >> in terms of bringing down the unemployment rate s that enough? >> the economy really needs to get well beyond a 2 1/2% growth rate, closer to 3, 3 1/2 even to bring the unemployment rate down meaningfully and it's not growth you can get excited about, but it's better. >> anthony mason, cbs news, new york. on the cbs "moneywatch," it might be a good time to refinance. mortgages have hit an all-time low. ashley morrison is here in new york with that and more. good morning, ashley. >> good morning to you, drew. >> reporter: stocks in asia were mixed today. tokyo's nikkei down 0.8 and hong

kong hang sang finished higher by 1.3%. the dow gained nearly 62 points yesterday and the nasdaq finished higher by 21 points. also overseas the italian parliament approved $39 billion austerity package and includes tax hikes and changes in pensions intended to help italy pay off its $2.5 trillion debt. mortgage rates hit another record low. freddie mac says the average rate on a 30-year fixed loan dropped to a record 3.91% this week. the third time this year that mortgage rates have hit new lows. well, holiday trouble for some, best buy customers with christmas now just hours away, the giant electronics retailer says it won't be able to fill some online orders. best buy blames overwhelming demand for orders made in november and december. but, drew, these last hours before christmas can be a good time to shop. many retailers are just slashing

prices. discounts across entire stores are more prevalent this year "the new york times" is reporting. for instance half off at ann taylor and 60% off at the gap. the bad news, all this means merchants may be stuck with too much merchandise. and i know yesterday, i hit it big. i came home with four huge bags! now my problem how am i going to get it on the flight? >> i'm sure you'll figure a way. >> try. >> ashley morrison in new york, thank you very much. cleanup is under way in northern georgia. a powerful storm packing winds around 60 miles an hour moved in yesterday, causing tremendous damage. part of a brick wall collapsed. two people were injured from flying glass. many were forced to take cover. >> the door got blown in and there is some glass lying around and -- but everybody was okay in there and nobody was hurt. >> meanwhile, it will be a white christmas in denver which has been hit by an early winter

snowstorm. more than a hundred flights were canceled yesterday at denver' airport. 70-mile-an-hour winds blew through southern california. it uprooted trees and overturned trucks. some customers lost power. in iraq days after u.s. troops left, a series of deadly bombings in baghdad. at least 16 blasts exploded yesterday, killing at least 69 people, wounding more than 2 hundred. the white house condemned the attack and says attempts to derail the peace progress will fail. u.s. relations with pakistan may be reaching critical mass. last month a u.s. air strike killed about two dozen pakistan soldiers. the u.s. admits mistakes were made. bob orr reports. >> reporter: this was the morning after the american-led air strikes which killed 26 pakistani soldiers and pushed relations with pakistan to a

breaking point. military investigators blame the friendly fire incident on miscommunications. in a long-standing distrust between the u.s. and pakistan. the incident happened november 25th along the afghanistan/pakistan border. four helicopters dropped coalition troops on a mission to clear a nearby village. u.s. commanders had been told pakistan had no border posts in that area, but suddenly the troops came under heavy fire from a ridgetop bunker. u.s. war planes were called in to drop flairs. a signal to the gunners in the bunkers they were firing on u.s. and afghan commanders. when that firing continuing, they concluded they were facing insurgent enemy forces and air strikes were ordered. over two hours, there were three separate firefights with u.s. war planes striking two pakistani border outposts. pentagon investigators conceded the battle was prolonged by mistakes. u.s. forces relied on inaccurate

maps and commanders did not tell the pakistanis the precise location of coalition troops saying past missions had been compromised when battle plans had been shared. they call the report overall short on facts. but pakistan did not participate in the investigation. bob orr, cbs news, washington. a strong earthquake rattled new zealand this morning. the 5.8 magnitude quake shook the city of christchurch. residents are still nervous from the quake that killed 182 people back in february. just ahead on the "morning news," the unanswered question of the article 32 hearing of bradley manning. plus a massive fire rips through an apartment complex in san francisco. ♪ ♪

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through an apartment complex in san francisco yesterday. the five alarm fire left 60 people homeless. because of the high winds it took firefighters three hours to get the blaze under control. a total of 32 dwellings were destroyed. the article 32 hearing for army private bradley manning is over. the decision due by january 16th on whether he should face a court-martial for leaking u.s. classified files. cher atkinson reports. >> reporter: 24-year-old bradley manning wore an awkward smile as he was returned to confinement. the army intelligence analyst had just heard prosecutors accuse him of betraying his country and handing masses of national secrets to the website wikileaks. in all they say manning pulled 100,000 documents from a supposedly secure computer network although he signed agreements to protect government secrets. the hearing last a week and was the first step in deciding whether manning should face a

court-martial. manning authorities blame superiors who allowed him to access classified data despite severe emotional warning signs. witnesses testified he was broken to outbursts and that he was a gay soldier and had multiple personalities and was a woman trapped in a man's body. supporters for manning have stood outside the gates at ft. mead, maryland. they say the leaked material didn't hurt anyone and in fact, exposed war crimes but prosecutors used this video. it shows the notorious american al qaeda operative adam gadahn touting sites like wikileaks as helpful on the war in the west. >> enemy interests today are spread all over the place and easily accessible. >> reporter: did the army fail a troubled young soldier? did he fail his country? or both. the presiding officer will have until january 16th to recommend whether manning face court-martial. sharyl attkisson, cbs news, the

pentagon. thousands of grave markers at arlington national cemetery may need to be replaced or corrected. the army reported to congress thursday that potential mistakes involved about 64,000 grave markers. last year, misplaced graves were found. this report mostly found incorrect spellings and other minor errors. straight ahead, your friday morning weather. and in sports, the colts make a last-minute desperate drive against the texans to win their second game. i habe a cohd. yeah, i toog nyguil bud i'm stild stubbed up. [ male announcer ] truth is, nyquil doesn't un-stuff your nose. really? [ male announcer ] alka-seltzer plus liquid gels fights your worst cold symptoms, plus it relieves your stuffy nose. [ deep breath ] thank you! that's the cold truth!

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here's a look at the weather in some cities around the country. time now for a check on the national forecast. the latest satellite picture shows rain and snow across the southeast and northeast. it's also snowing in the southwest. the west coast has mainly clear skies. later today, the snow over new mexico will slowly wind down but not after a few inches pile up on the mexican border. snow is also coming into the western great lakes area. and winds across southern california will still be gusty, up to 40 miles an hour across some areas. well, in sports, almost a christmas miracle. the colts won their second game. with just over a minute left, down by four against the texans, the colts reggie wayne catches a

pass for a 20-yard gain and that he catches a 1-yard pass from dan orlovsky for the game winning score. colts over the texans 19-16. the nfl has been hit with a lawsuit over concussions. former running back jamaal lewis and three other former players say injuries they received when playing has left them struggling with serious medical problems years after they retired. they also claim the league hid the dangers for yerds. the nfl says it has always made player safety a priority. in college football a blowout in the bowl las vegas. on the opening kickoff, boise state doug martin ran the ball back for a touchdown against arizona state and in the words of done meredith, turn out the lights! the broncos were unstoppable. boise state rolls over the sun devils 56-24. when we return, another look at this morning's top stories. and why former presidential candidate john edwards wants to delay his criminal trial.

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on the "cbs morning news," here's a look at today's weather. rain and snow will quickly come to an end in the northeast. a big snow maker in new mexico bringing snow all the way to the mexican border. it's chilly across the midwest. here is another look at this morning's top stories. the house buckled under intense pressure and now has agreed to a two-month extension to the payroll tax cut. many in washington call this a victory for president obama. powerful winds caused major damage in northern georgia yesterday. thousands lost power. at least two people were injured from flying glass. john edwards is asking for another delay in his criminal trial. his attorneys say he has a medical condition and wants to push back the trial by at least two months. it's supposed to start at the end of january. edwards is accused of using campaign funds to hide his

pregnant girlfriend during the 2008 campaign. in california, hospital officials say the nurses who staged a one-day strike yesterday won't be allowed back to work today. the nurses formed picket lines outside nine hospitals in los angeles and san francisco. they are protesting health care costs and sick leave. a new and detailed report confirms the washington monument won't be able to open any time soon. after the 5.8 magnitude quake struck in august. they found considerable cracking and loose stones. the washington monument is closed to visitors indefinite. about 30 ice fishermen in northern minnesota know what cold comfort is. they were rescued after being stranded for hours when a huge piece of ice broke from shore. there were no injuries reported. this morning, on "the early show," a look at how bad the weather could be across the country this holiday weekend. i'm drew levinson. and this is the "cbs morning news."

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good morning and welcome to 9news now. today is friday, december 23rd, kris mass eve eve, can you imagine? >> i'll still be going to the store, i thought i was finished. now all of a sudden i'm told i have to get other things. >> one more thing. good morning, monika samtani.

she'll have traffic momentarily. >> olga is in for howard. >> pavement is still wet. on radar, things are looking a little different. we're getting the moisture moving on out of here. we'll keep cloud cover early on in the morning. a little bit of sunshine later on this afternoon with winds now out of the northwest, a little bit of a breeze so far this morning but it still won't be too bad to finish off the week for a lot of folks getting ready to kick in the extended holiday weekend. we're look pretty good in and around the region. by the 8:00 and 9:00 hour, you can expect to see sunny skies. we'll get into the upper 40s by 9:00. most of us should top out around 50 to 55 degrees for the daytime highs. with the winds, we'll begin to feel a little bit cooler. than the actual thermometer

temperature. right now, you do need a very light layer. by december standards, we're still pretty mild into the 40s around the region. we're at about 45 up toward hagerstown and the higher elevations. here's how we look for the next several hours. high of about 52 today. we're looking forward seeing a pretty calm holiday weekend. monika? >> well, you know, for early on a friday morning, before christmas, you know, it has been busy. although the volumes are light. there are a couple of things you need to know about. going to the north side of town. there was a jackknifed tractor trailer on the outer loop of the beltway near connecticut avenue. i've just been told that everything was moved to the shoulder. again, it was a jackknifed tractor trailer there on the beltway north of town. let's take a live look there. if you're planning to head over to the outer loop westbound side of 495, you should see that everything is cleared up. back over to the map, also an extent on the outer loop of the beltway at the american legion bridge. was blocking a couple of lanes.

let's take a live look right now. they're in the process of clearing that up. it is nice and light across the bridge span as well. we'll go back to the map on the inbound side of i-66, watch out for the accident sitting right before the beltway blocking a right lane after nutley street. be aware of that as well in virginia. coming up, i'll update you on those incidents at 4:39. congress is expected to pass an extension of payroll tax cuts and end unemployment benefits. house republicans caved into political pressure. >> the house g.o.p. agreed to accept the deal that was already approved by the senate to extend the cuts by two more months. lawmakers will try to work out a year-long deal when they return from recess in january. danielle nottingham has more. >> reporter: house republicans have agreed to a two-month extension of the payroll tax break. house speaker john boehner announced the sudden change of heart late thursday. >> we were here fighting for

the right things. may not have been politically the smartest thing in the world. >> republican lawmakers were under intense pressure to break a holiday stalemate that would give 160 million workers an average of $20 a week in their paychecks and extend unemployment benefits to 99 weeks. the tipping point came when the top republican urged them to get on board with the bipartisan plan. they reluctantly agreed but only after insisting on some tweaks to the plan. and a promise from the senate they'll appoint negotiators to work on a year-long extension. >> while everyone asks for a full-year extension of these programs, a lot of people weren't willing to put the effort in as the holidays were approaching. >> president obama released a statement congratulating congress for stopping a tax hike on american families struggling to make ends meet. earlier thursday, he said he's ready to begin work immediately on an extension that