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Texas Gov. Rick Perry is going to drop out of the Republican race for the White House, sources are telling The New York Times and CNN.

NPR has not independently confirmed the news.

We'll pass along more as the story develops. Perry is expected to hold a news conference at 11 a.m. ET.

With the South Carolina primary just two days away, Mitt Romney woke up to some troubling news. The Iowa Republican Party seemed poised to revisit his Jan. 3 victory in the caucuses.

A trio of economic indicators were just released:

-- First-time claims for jobless benefits plunged by 50,000 last week from the week before, to 352,000, the Employment and Training Administration says. You have to go back to Spring 2008 to find a lower number. Reuters says the news signals "continued improvement in the labor market."

Good morning.

Our early headlines:

-- Report: Iowa Recount Puts Santorum Ahead By 34 Votes, Result 'Unresolved'.

-- Kodak Calls Bankruptcy Filing 'Necessary Step'.

"Rescue efforts have resumed aboard the wrecked Italian cruise ship, Costa Concordia, off the coast of Tuscany," the BBC reports. "Operations were suspended on Wednesday as the vessel shifted its position. More than 20 people are still missing."

The ship, with about 4,200 passengers and crew aboard, ran into rocks on Friday and listed over to its starboard side. Eleven people are confirmed dead.

In the run-up to Saturday's GOP presidential primary in South Carolina, candidates have clashed over the role of Bain Capital — a firm that either creates or kills jobs, depending upon whom you believe.

Front-runner Mitt Romney sees the bright side. Before entering politics in the 1990s, he co-founded Boston-based Bain Capital, one of the nation's largest and most profitable private equity funds. He has said he created 100,000 jobs while at Bain.

"Running short of cash and unable to sell 1,100 digital imaging patents that could have rescued it," as Rochester's Democrat and Chronicle writes, Eastman Kodak Co. today took the long-expected but still painful step of filing for Chapter 11 bankruptcy protection.

Wikipedia was shut down on Wednesday to protest anti-piracy bills in Congress. But Twitter was there to fill the encyclopedic void. "Facts Without Wikipedia" became a trending topic. One tweet informed readers that Star Wars was based on the work of William Shakespeare.

Katie Thacker of Tacoma, Washington, was in labor when she stepped into an elevator at St. Joseph Medical Center. On the way to the maternity ward, the elevator got stuck. She left the elevator with a baby named Blake.

Rick Santorum has ended up 34 votes ahead of Mitt Romney after a recount of the results from the Jan. 3 Iowa Republican presidential caucuses, The Des Moines Register is reporting.

Nearly a week after a cruise ship capsized off the coast of Italy, its captain is under house arrest and could face charges of multiple manslaughter, shipwreck and abandoning ship. Rod Sullivan, professor of maritime law at the Florida Coastal School of Law, tells Steve Inskeep the captain has no legal obligation to go down with the ship.

All the Republican presidential candidates are campaigning in South Carolina Thursday because the primary is on Saturday. Many voters have still not made up their minds which candidate to vote for.

Transcript

RENEE MONTAGNE, HOST:

Let's look now at another side of the economy: manufacturing. The Federal Reserve yesterday said American manufacturing had a very strong finish last year. To find out if that's likely to last and what it means for the big issue of jobs, we turn, as we so often do, to David Wessel. He's economics editor of The Wall Street Journal.

Good morning.

DAVID WESSEL: Good morning, Renee.

MONTAGNE: So after all the handwringing about the death of U.S. manufacturing, are American factories B-A-C-K?

(SOUNDBITE OF LAUGHTER)

Transcript

RENEE MONTAGNE, HOST:

This is MORNING EDITION from NPR News. I'm Renee Montagne.

STEVE INSKEEP, HOST:

And I'm Steve Inskeep. Good morning.

Pakistan's civilian government is in the midst of one of the many dramas that seem to occupy all its time. The prime minister appeared before the country's Supreme Court. He was ordered to explain why he should not be held in contempt. The prime minister has been refusing to prosecute a corruption case against his own boss, President Asif Ali Zardari.

It's been nearly a year since the uprising began in Egypt that toppled President Hosni Mubarak began. The revolutionaries that started it all are again finding themselves persecuted. The military council that runs Egypt is targeting them, using the court system and prison to shut them up. Unlike a year ago, the revolutionaries can no longer count on much popular support.

In a moved that had been expected, Kodak filed for Chapter 11 bankruptcy protection on Thursday. It raises the specter that the 132-year-old trailblazer could become the most storied casualty of a digital age that has whipped up a maelstrom of economic, social and technological change.

When the Washington Monument was damaged after an earthquake last summer, Congress committed $7.5 million to fix it but expected the public to pay the other $7.5 million. It turns out the public will be just one person. The Washington Post reports billionaire David Rubenstein will make the $7.5 million donation Thursday.

A candidate forum was held in Greenville, S.C., Wednesday night, sponsored by the anti-abortion rights group Personhood USA. Participating in the event were Newt Gingrich, Rick Santorum, Ron Paul, and Rick Perry. Front-runner Mitt Romney did not attend. South Carolina holds its primary on Saturday.

As the Mayor's Conference takes place in Washington D.C., city governments are dealing with severe problems at home — from high unemployment to funding cuts. Steve Inskeep talks to Mick Cornett, the Mayor of Oklahoma City, about how his city has managed to avoid some of these problems.

President Obama rejected an application to build the 1,700 mile Keystone XL pipeline from Canada to the U.S. Gulf Coast on Wednesday. He blamed congressional Republicans, who had set a 60-day deadline for his administration to complete its review of the project.

Just minutes after Obama issued a statement denying the permit, Republican members of Congress lined up before cameras.

"I'm deeply, deeply disappointed that our president decided to put his politics above the nation," said Rep. Lee Terry of Nebraska.