Tuesday morning headlines

Stocks edge higher: Not-so-hot economic news has the market pulling back after a strong opening. Dow is up about 50 points.

Fed meets today: No big announcement is expected, though the session is likely to center on the direction of short-term interest rates. The Fed has kept its key rate at a record low of between zero and 0.25 percent for three years. (AP)

Retail sales disappoint: Only a 0.2 percent gain for November, which is less than expected and could raise concerns about the holiday shopping outlook. (AP)

Best Buy profits falls: Another cause for concern: the electronics retailer reports a 29 percent cut in third-quarter earnings. From AP:

Best Buy Co. is facing tough competition from discounters and online retailers. The largest U.S. specialty electronics retailer said it increased mark downs in categories such as mobile computing - which includes tablet computers - TVs and movies to drive traffic and sales, hurting its gross profit. It also spent more on advertising. "We took actions to provide value to customers and drive our business in this competitive consumer environment," said CEO Brian Dunn.

Sharp drop in gas prices: Not sure the L.A. figure is right - the weekly government survey has an average gallon of regular plummeting more than 30 cents, to $3.387. In general, prices have been falling for several weeks.

Support for Brown's tax plan: Six out of 10 California voters are fine with the governor's plan to temporarily increase the state sales tax and impose higher income taxes on California's highest-earners, according to a poll by the Public Policy Institute of California. (Sacramento Bee)

Time to pull budget trigger: The governor's finance director will announce today how much the state will have to cut as a result of failing to meet optimistic budget projections. Any cuts will go into effect on January 1. (Sacramento Bee)

Champagne sales are up: The industry had shipped 192 million bottles through the first nine months of the year, and the fourth quarter is usually the strongest. Annual sales could approach the record 339 million bottles shipped in 2007. From the WSJ:

The champagne rebound reflects the effervescence in the luxury-goods industry as a whole. The world's largest luxury-goods group, LVMH Moët Hennessy Louis Vuitton, the owner of fashion and beauty brands such as Louis Vuitton and Guerlain as well as several champagne labels, recorded 15% sales growth over the first nine months of 2011. Luxury fashion rivals such as Hermès and PPR's Gucci logged similarly robust growth.

Lowe's backlash: The North Carolina-based home improvement chain is under attack among liberal groups for pulling its ads from a reality TV show featuring Muslim Americans. The ads were pulled after complaints by a conservative Christian group. From the LAT:

State Sen. Ted Lieu (D-Torrance) called the move "bigoted, shameful, and un-American." A petition on SignOn.org that calls on companies to keep advertising on the show has gathered more than 13,000 signatures. Activist and actress Mia Farrow joined the battle in a Twitter post and urged a boycott of Lowe's. In its defense, Lowe's spokeswoman Karen Cobb said the company had a "long-standing commitment" to diversity and pulled the ads only after the show became "a lightning rod for people to voice complaints from a variety of perspectives." Other companies had also removed their ads from the show, she wrote in an email.

Santa Monica office deal: A Houston investment firm has purchased five buildings for $90 million. The properties provide creative-type space for technology and entertainment businesses. (LAT)

No change in IRS mileage rate: The standard deduction for business-related driving will remain at 55.5 cents in 2012. It was bumped from 51 cents earlier in the year. (OC Register)