Wednesday morning headlines

Stocks edge higher: Dow is up about 30 points in very early trading.

Brown's State of the State: In his address later today, the governor must deal with an ongoing fiscal crisis without mothballing longer-term ideas, such as a bullet train. From the LAT:

Brown has continued to demand that lawmakers cut deeply into the state's social safety net. He has simultaneously embraced an ambitious high-speed rail program whose price tag has ballooned since 2006, when voters agreed to pay for it. He has said Californians will have to choose between billions in new taxes next fall and cuts in public school funds -- but he also has advocated for a new multibillion-dollar water bond.

Governor hits the road: After this morning's State of the State, Brown will fly to L.A. for several appearances and then onto San Diego. Since taking office, he has spent much of his time in Sacramento. (Sacramento Bee)

Factory output surges: Another sign of a recovering economy, with stronger demand for business equipment and vehicles. (AP)

Calpers downsizes portfolio: California's giant public pension fund will sell its interests in about one-fifth of its residential real-estate portfolio. That includes 16,300 home sites and about 5,000 acres of undeveloped land in 11 states. From the WSJ:

Calpers move comes after three years of distressed-land sales by other major owners, including builders and banks that have driven down values by as much as 75% in some markets. Calpers has resisted a major liquidation of its holdings until recently.

L.A. gas prices unchanged: An average gallon of regular is $3.773, according to the government's latest survey, providing a respite to several weeks of big increases.

New councilman in 15th district: LAPD officer Joe Buscaino creamed Assemblyman Warren Furutani in yesterday's special election. Buscaino will serve out the rest of Janice Hahn's council term and be eligible to run for re-election. (Daily Breeze)

Assessing movie marketplace: The Sundance Film Festival gets underway, with more than 100 feature films being showcased. Last year more than 40 films were purchased, among the most ever. (NYT)