3:40pm: If Howard chooses the Warriors and the Lakers are willing to negotiate, Golden State remains "ready and able" to work out a sign-and-trade, says Ken Berger of CBSSports.com. If Howard elects to sign elsewhere, the Warriors are comfortable with having added Iguodala, according to Berger.
3:20pm: Woj has now backtracked on his earlier report, calling it "premature" to rule out the Warriors on Howard (Twitter link). Golden State certainly has less leverage now, since the team would likely require the Lakers' cooperation on a sign-and-trade, and Houston still looks like the frontrunner for Howard, but the Warriors aren't officially out of the mix.
3:07pm: The Warriors have dropped out of the race for Dwight Howard, according to Adrian Wojnarowski of Yahoo! Sports (via Twitter). While no teams have been informed of Howard's decision yet, Golden State dropping out could clear the way for the All-Star big man to end up in Houston, tweets Wojnarowski.
Even after agreeing to sign Andre Iguodala to a four-year deal, the Warriors still could theoretically acquire Howard via sign-and-trade. However, Howard would need to choose Golden State, and then a deal would require the Lakers' cooperation. With D12 rumored to be leaning toward the Rockets, perhaps the Warriors decided to cut their losses and move forward with Plan B.