While Large Language Models (LLMs) can amplify online misinformation, they also show promise in tackling misinformation. In this paper, we empirically study the capabilities of three LLMs -- ChatGPT, Gemini, and Claude -- in countering political misinformation. We implement a two-step, chain-of-thought prompting approach, where models first identify credible sources for a given claim and then generate persuasive responses. Our findings suggest that models struggle to ground their responses in real news sources, and tend to prefer citing left-leaning sources. We also observe varying degrees of response diversity among models. Our findings highlight concerns about using LLMs for fact-checking through only prompt-engineering, emphasizing the need for more robust guardrails. Our results have implications for both researchers and non-technical users.