guaranteed! ♪ your ticket to a better night's sleep ♪ >> good afternoon, everybody. thanks for joining us, i'm larry biel. >> and i'm alma dates. the closing bell, a merciful sound this afternoon that can only be described as a blood bath for the u.s. market. the dow took a huge plunge tonight at nearly 400 points. christin zi is here with what it means. >> the dow closed down 392 points. it's now trading at about 15,514. as for the company nasdaq, that is down 147 points, an even

bigger percentage drop than the dow. and that's just today. investors here are clearly spooked by what's happening in china. trading was stopped automatically for the day for the second time this week. chinese markets have lost 10% of their value since the start of the new year, fuelled by growing concerns over china devaluing its currency clearing its way to a weakening economy. china has been on a bubble for a long tiemg. >> until they get a really steady and firm economy that's based on manufacturing and services and technology >> apple, facebook and yahoo, each down with 4-6%.

chinese investors give, is the bay area economy threatened? >> it's such a diversity of talent, such a diversity of industry here, we are relatively immune to what's going on outside of our little bubble. >> translation, don't panic. a report shows fewer americans applied for unemployment benefits a sign that the labor market remaining strong in 2016. >> turning to the weather right now, even though it's not raining at this moment, we're still feeling the effects of el nino today. >> trying to catch some big waves today where you can see lots of surfers on the water there. abc 7 news reporter wayne friedman is there with a closer look. >> we knew the surf would be big today as we came over the

mountain to half-moon bay. the surf was hitting the coast so hard that literally, the spray was coming up. it looked like a fog. it was a white mist all along the coast. on a day like this, people go to mavericks. >> take a look at the pacific ocean in an angry mood. most, but not all. >> reporter: which is why frank solomon ventured into maverick's wake today. they're world class surfers in a world famous spot ready for world class waves in their upcoming world championship. >> but when it comes down to following it for three, four days and then it gets down to two days out, then we make the call. >> jeff clark will be the man who makes that decision. he started this contest in 1998. has written the unruly waves of certain and business and now, in the wake of el nino storms, his

contestants are gathering with those who like to watch. they lined the cliff today. >> people like to watch people do amazing things. >> what this flirted was at the intersection of danger. the surfer who holds the wave for the largest wave ever ridden, today, he's okay after leaving in an ambulance. >> i don't know if it's a torn rotator cuff or just pulled the muscle. >> so, no, it's not just another desk day at the office. from maverick's beach in half-moon bay, wayne friedman, abc 7 news. >> forcing officials to close the pier in pa sfica. warning from coming out and witnessing the huge waves crashing along the coast. >> you can see the waves

slamming into ocean front homes in malibu. the homes are built up to avoid serious problems and officials are still keeping watch there. >> today, just a brief lull. >> we're looking toward the east bay hills with a lot of sunshine outside today. spencer christian joining us with our first look at the accuweather forecast. we had a couple of light scattered showers. generally, weather has been calm and cry. but it's anything calm. we have a high surf advisory in effect until 4:00 tomorrow morning. look at the wave heights up around 15-19 feet right now. westerly swell driving these high waves, large breakers are in between wave sets also likely. here's the view from the tower.

looking north ward, under partly cloudy skies at 53 in san francisco right now. you see a few dark clouds there. mostly clear this evening. a few high clouds and really chilly with overnight lows. ranging from mid 30s to mid 40s. tomorrow afternoon, we see clouds thicken, high temperatures in the mid 50s and our next storm arrives tomorrow night. larry and alma? >> thank you so much, spencer. all the rain we've seen in the past few days, it's tough on trees. they're already weakened by the drought. you can see tree trimmers chopping up a 50 foot tree that fell on the road. we're told the train blocked out water service for some time this morning. >> a rock slide has closed the

highway 140 heading into yose yosemite national park the national park service says it may have been a factor in this. park rangers are not sure but it will be closed at least through the rest of this day. thankfully, nobody was hurt. >> tracking the right conditions and weather on the road with the news app. just enable push alerts for severe weather and breaking news. >> a new initiative in the city's effort to reform the police department's use for their use of force policies. >> this is in the wake of the police shooting of december. abc 7 news reporter is live at city hall with the story. >> alma, the mayor met privately with a group of african american

leaders here at city hall. he had that letter with the initiatives prepared for that meeting. since that controversial shooting, the mayor and the police chief have come under fire. in fact, today, some of that anger spilled over to his home. >> a small group of about 15 people conversed on the home. their protests ranged from homelessness to the police shooting of mario woods in early december. that shooting weighed heavily on the shoulders of the mayor, who has issued a memo to the supervisors and the police commission. a deadline of january 15th to submit budget requests for training and weaponry. he's asked police chief to craft. today, the mayor briefed reporters on what he wants the new initiatives to reflect. >> it has to do with deescalation practices. how do we get there? new training. making sure it's transparent. making sure it's reflective of new practices.

>> the mayor has responded to the anger among african american community leaders by directing the chief and police commission to make sure lethal force is the last resort. the chief says some of these reforms are already happening. >> we already have almost 400 officers, crisis intervention training, lee says he wants the reforms to reflect the department of justice's recommended guidelines. >> we've opened ourselves up to a total review, by the way, of department of justice and the cop's review program of everything we're koing. >> next week, the chief will meet with department of justice officials. >> vick lee, abc 7 news. >> oakland police are asking for your help fighting 22-year-old sterling value dez, who is the suspected gunman in a shootout on broadway near 14th street. sterling valdez is described as african american, 5'8", just over 150 pounds, last seen

wearing a light colored coat with white pants. >> abc 7 news received two of the suspects' photos. he says the man broke into his home around noon yesterday. investigators are still trying to figure out exactly what was taken. >> a walnut creek 7-eleven's robbery happened just after 11:30 on pine street. the person got away with an undisclosed amount of cash. >> 50-year-old denise slater has pleaded not guilty to misdemeanor charges of civil rights of two muslim men last month. one of the alleged victims captured cell phone video of slater shouting insults at them. he says slater threw coffee on them. slater is allowed to remain free

on his own recognizance. her pretrial date is set for february 26th. >> still ahead on abc 7 news at 4:00, a record budget. the governor lays out his spending plan for the state. >> one private company is taking this very public problem into its own hands. >> plus, maybe doing you more harm than good. the new guidelines that could change how you eat. >> the first live look at the afternoon, oncoming travelic, the northbound traffic on the left-hand side. that's backed up a little bit at this hour. moving smoothly on the right-hand side heading back to the

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governor jerry brown said the state budget is in good shape, then laid out a record of $170 billion planned for california's next fiscal year. >> mostly every program you can hear about in the next nine months will be good. and will help people. but we also want to look at what's the capacity of the state and what's the willingness of taxpayers to pay more. >> the reflection of efforts to balance fiscal restraint with increasing demands with social service and health care demands cut during the recession. the budget isn't fiscally responsible. coming up at 4:30, the local company helping break the

financial gap when it comes to transportation. >> yahoo is planning to layoff 10% of its work force as early as this month. we're talking about a thousand jobs. the silicon valley business reports is reorganizing yet again to get its business back on track. cuts are expected to hit yahoo's media business as well as european operations and platforms technology. yahoo is declining to comment on these layoffs but has acknowledged the changes are taking place. >> redwood city will no long er passport changes. >> new dietary guidelines are out today and sugar just became public enemy number one. the guidelines suggest sugar to no more than 10% of your daily calories. >> mary poppins mantra under attack.

a spoonful of sugar may help the medicine go down, but sugar and salt are contributing to american obesity and chronic disease. >> this is the first time that the dietary guidelines actually recognized that and have limited them appropriately. >> nearly half of the sugars in our diet come from soda, sports drink or sports drinks. >> fruit juice is just as bad as soda. >> dr. robert, professor of pediatrics says the new guidelines are a big deal for the nearly trillion dollar food industry. >> let's be very honest here. the dietary guidelines are not for people. people do not watch what they do. the number of people who can do the computations in their head as to what they're consuming are vanishing few.

the dietary guidelines are for the food industry so they will hopefully reform late products to meet those dietary guidelines. >> but you don't need to wait for industry changes. if you want to start the year on the right track, the strategy is simple. >> three words. eat real food. if the food came out of the ground or if the animal ate the food that came out of the ground and is brought to you in that form, you're good to go. >> here's the good news. you don't have to worry about the natural sugar in apples or raisins, the doctor says. simply watch out for those processed foods. in the news room, tiffany wilson, abc 7 news. >> after 21 months, renovations of the crown jewel in san francisco are nearly complete. abc 7 was at the park today as the mayor took a tour of the park's popular south side. updates include new grass, a new picnic area and off the leash dog area. similar updates have already

been made on the north side. the mayor says park rangers will be watching constantly to make sure it doesn't become known for its trash problems than its spectacular views. >> multiple uses of the park should be respected by everybody. that's going to be a challenge for the park rangers. >> the park is scheduled to fully reopen next thursday. >> all right. back to the forecast after rain and rain and more rain. finally, the sun was out again today. >> yes, but is there more rain? >> there's always more rain. here's a look at live doppler 7 hd under mainly sunny skies right now across the bay area. we have calm weather conditions. we have impulses coming our way. especially in the north bay where santa rosa has seen over three and a quarter inches of rain.

these are forecast features with a little break of active weather and tomorrow. the storm arrives tomorrow night and continues into saturday morning and another break from the action on sunday. before we get to the next storm, we remind you that our storm impact scale is here to help you prepare for these oncoming storms. we rank the storm from 1-5. our next storm, tomorrow night, saturday, ranks 1. it will be light in intensity with under half an inch of rain. the winds will not be a major factor. clouds will be thickening by 10:00 tomorrow night.

rain will begin arriving first in the north bay and then 11:00 p.m. up to midnight and all parts of the bay area. mainly moderate rainfall, probably some areas of locally heavy rain. and then we'll see the rain breaking up by midday saturday. looking ahead to saturday afternoon, rainfall totals are expected just under a tenth of an inch up to about perhaps half an inch of santa rosa. overnight, partly cloudy to main skies, low temperatures a bit on the chilly side. tomorrow, partly cloudy skies in the afternoon. highs will be in the same range. we'll see around mid 50s. here's the accuweather 7-day forecast. here we go with another string of days that will produce some rainfall. a storm number one for saturday, a number one coming in on monday

and another one coming in on wednesday. so the pattern continues. rain just about every other day. larry and alma? >> thank you so much, spencer. >> up next, star wars, the force awakens, gets set to open in china.

as if it really needed anymore hype, this weekend's release of star wars, the force awakens, in china. disney hired a-list pop star lu hahn to sing the inner force, the official theme song in china. "the force awakens" surpassed avatar at more than $760 million.

the force awakens, as you know, is produced by disney, the parent company of abc 7. >> the annual award season is now up and running. star gathered for the people's choice awards. the film, furious 7 came out the big winner for favorite action movie. on a tv side, abc 7's grey's anatomy. >> you know what's crazy, people come up to me and know that i'm feeling weird being here because i don't know anyone. so it's so nice. i mean, everyone's been so wonderful. >> the people's choice awards will likely be reviewing its security protocol after a man ran on stage and grabbed a mic during one of the presentations. check it out. it was eventually chased away. >> yeah, you're lucky vin diesel

didn't get ahold of her. >> here's your 60 second hot list from gma today. >> cnn headline news anchor and her husband speaking out this morning for the very first time since being caught in a deadly shootout. >> when you are getting very emotional here. i've never cried on the air before. but when we talked about that night, i think about watching him get shot. >> i came out of the shower looking for a towel and here's my wife flying back wards through the air with this decembsperado pointing a gun at. >> everyone is talking about tom brady and grazel bunch's plan. >> no smoke and mirrors here. it's a very sensible, healthy way to eat. and it shows. >> what do you have for us? >> the texas southern chili, everybody. >> yesterday, when you did your

nachos, you said straight hand, bring it. >> bring it michael. >> yeah, you did bring it. >> and that's the gma hot list from today. we'll see you in the morning on gma. >> i don't know if the bradys are eating that. that is not even allowed. you can catch robin, george and the rest of the team right here on abc 7 following the abc 7 morning news. >> abc 7 news at 4:00 does continue. >> sounds of relief after 17 trapped miners were pulled to safety. >> and frustrated drivers looking for some kind of relief. but they may have to turn to private businesses instead of the state. >> just about everyone trying to become a winner.

here are the headlines as we come up on 4:30. it's been a scary start on wall street with stocks plunging again today. the dow dropped 392 points, the s&p fell almost 2.5%. the dow is now down 5% in 2016. that's the worst four-day percentage to begin a year ever.

analysts are blaming china. the volatile shanghai market opens in less than an hour. >> new at 5:00, laura anthony explains the action the state is taking to get to the bottom of potential abuse. also at 5:00, governor jerry brown's 2016-2017 budget is out. more with how bay area schools stand to increase spending including the maintenance of highways and roads and the expansion of public transit. but as we wait for improvements, some tech companies are taking matters into their own hands. abc 7 news reporter chris wynn with more on what facebook is doing to help folks get to work faster. >>. >> we know that traffic problems here in the bay area aren't anything new. but, still, they say not enough is being done to make it any better.

>> in the bay area, much of our lives are spent stuck in traffic. >> i am not as productive because i'm in the car for so long. >> it's frustrating. i have to leave. >> probably an hour before classes start. it should usually take about 25 minutes to get there. >> the proposed budget, nearly $37 billion will go toward transportation. >> the more roads you have, the more you have to maintain and rebuild it. and they're driving, but we have 332 billion miles. that's a lot of wear and tear. >> but as we wait for improvements to infrastructure, some are taking matters into their own hand. facebook will contribute $1 million to help fund the study to improve transportation along the corridor, including rail service between san mateo and alameda counties.

if more isn't done to help these companies get their employees to work, some could eventually move out of the area. >> we need to get ahead of the curve and build the transportation systems that are going to maintain the viability of our rapidly expanding corporate headquarters. >> meanwhile, drivers remain skeptical about how long it will take for relief. >> this is a booming area. in san jose, chris wynn, abc 7 news. >> 17 miners trapped nearly 80 stories below ground in up state new york were brought to safety this morning. abc news marcy gonzalez has more on their rescue and why they're being called inspiring. >> the sounds of relief after nearly 10 hours of anxiously waiting 17 miners trapped nearly

900 feet below ground in new york state are now all safe on solid ground. >> the miners displayed excellent self discipline control and not panicking. >> i just never thought nick could happen here. >> the miners huddled in together for warnt as rescuers rushed to help. >> power needed to back fill. out in lansing. >> using this crane to lower a basket below ground, lifting several workers at a time to the surface. >> we've practiced mine evacuations regularly every year. so that practice is coming into play today. >> despite being shaken, exhausted and freezing, the miners waited there at the scene.

>> i'm inspired by them, to be quite honest with you. >> we're told all of the miners are in good health. a state of investigation is underway. >> a terrorism investigation into the shooting of a man outside a paris police station. officers shot and killed a man. they say he had a cleaver and yelled allah. they also claim he was wearing a fake suicide vest. the shooting followed the ser meany to honor the anniversary of the traveling terror attack. french president holland later this morning. >> the debate over ted cruz's eligibility to be president died down today on the campaign trail.

he focused on his familiar campaign change including abolishing obamacare. >> in vermont, his campaign is under fire with an event of just 1400. former president bill clinton hits the road today for his wife, hillary. he's supporting businesses that support research and development. hillary clinton will be in the bay area tomorrow. no public appearances are scheduled. >> president obama is considering revoking the me dal of freedom. the president will take a look at the proposed legislation if it's a proved by congress.

arizona congress will give the president power to revoke that medal. it's the first legislative attempt to strip the comedian of the nation's highest civilian honor. >> still to come on abc 7 news at 4:00, it's like any ordinary pothole, but this one is making news around the world. >> i'm spencer christian. we're getting a break from the almost everyday rains as you look at sunny skies from our east bay hills camera. however, more rain is on the way and i'll have the accuweather forecast coming up. >> another live look at the afternoon traffic here. this is 101 on san jose. car pool lane is moving northbound, which is much better. it's the oncoming traffic and that's

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a puddle across the pond has caused a social media flash, if you will. more than half a million viewers tuned in to the live twitter broadcast check it out. puddle watchers enjoyed six hours. the stream just captured people. >> i'm not sure i could spend six hours doing that.

>> one inch of water. mike rowe tries to be the jack of all trades. one thing he insists he is not is a bank robber. people immediately began posting. that's mike rowe. the cops even joked about it saying we issued an arrest warrant for mike rowe. just kidding. he learned about the whole thing while he was walking through an airport. >> i can't deny there is an uncanny resemblance. so i just fired off saying hey, for what it's worth, i'm in kansas. so be on the lookout for somebody that's shooter and less attractive. >> yieks. this isn't the first time he's been confused with somebody else, but most of the time, it has to do with his name, which is pretty common.

>> well, an uncommon day for us today. >> spencer is here to tell us more rain is on the way. >> we'll take this break and love it. snow showers over at lake tahoe today. you can see clouds just coming your way, coming your way and all of the sudden, nice little dusting of snow. we have calm conditions right here. but things will change tomorrow night. state wide tomorrow will be a mainly dry day. notice the storm approaching the northwest corner of the state. tomorrow, dry conditions early and high temperatures into the mid 50s. rain chances over the next week will only reveal a chance of rain every other day. a 670% chance on saturday, 90%

chance on monday and a 60% chance on monday. the latest in drought relief that we need without producing so much rain in such a short time that we get flooding and mud sliding and all of that. >> sounds good. we know about the weather now. >> it's going to happen at 7:15. you can ask spencer just about anything. just use the hash tag abc 7 now. >> do you think you'll get more questions about the weather or your favorite wine. a lot of people know that you're kind of a wine aficionado. >> we can't hear what he's saying. >> i've got the mic on.

>> well, i take questions about el nino because the effect has begun. we have the major league baseball trial, i was a junior in college in 1868. so, hey, log on and let's talk. i'm ready. fire away. >> it's going to be fun. it will be fun. it's really fascinating. >> i appreciate that. >> still ahead on abc 7 news at 4:00. power ball fever heating up even more. the growing jackpot and a bay-area winning ticket. >> michael finney, more problems for macys, this, today, after the company announced huge

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. fwr the 18th time in a row, no one matched all six power ball numbers. >> that means the next jackpot is one we've never seen go this high. we're talking $700 million. >> someone in union city is now a millionaire after matching five of the numbers.

>> amy hollyfield has the rich details. >> reporter: almost winning is still pretty good when you're talking lottery tickets. perry easterly kwor store will receive about $10,000 for selling a power ball ticket that almost won. >> i couldn't believe it at first. i said check the web site. i said you know what, april fools is not here yet. >> the ticket had five of the six winning numbers. it's worth about $1.4 million. customers who didn't even win still felt excited for the store. >> it feels good. it's not even mine, but it feels good. >> keith moore is already thinking about how to spend his prize. 25% of it will go to charity. >> i believe in karma. what goes around comes around. so why not. >> since no one won the power ball jackpot last night, planning on bringing in extra employees to handled the demand.

>>. >> maybe it's a bit luckier, but the odds are still the same. >> the store has come this close before, so the owner is hoping that is a good sign. >> last year, we had a person with five numbers on mega, missed by one number. this year, power ball, five numbers, missed by one number. so maybe it's coming. >> saturday would be a good time for that luck to hit with the jackpot already at $700 million. the store that sells the winning ticket gets $1 million. >> check out the line at a store in california near the border in san bernardino county. power ball isn't played in nevada, so people have to head to the border if they want to get their tickets. >> that's right, the one state where you can gamble on anything. a walgreen's supplier is recalling jars of mandarin

oranges because they may contain pieces of glass. >> you really need to watch out for this if you shop there. walgreen's has already removed them from store shelves, but you need to see if you have any at home. the food and drug administration received three reports of glas pieces in the jars and one caused an injury. go to abc 7 news dot com. there, you'll find the lot numbers and the phone number to call if you have any returns to be made for a refund. are you really getting the discount advertised? a class action lawsuit charging macys with inflating their discounts. the original retail price is higher than the actual retail price. in some cases, the suit claims the listed original price is twice as high.

macys told 7 on your side it doesn't comment on pending litigation. a similar suit has been filed against koh's. >> highly inaccurate heart rate readings. they could cause users to over-extend themselves. fitbit says the complaint has no merit but stands by the products and trusts them to validate their performance. fit bit also takes the lawsuit causing skin rashes. it was recalled back in 2014. >> all right, thank you, michael. >> cancer is now the number one cause of death in california and 21 other states. nationwide, heart disease is still the leading cause of death. >> this is according to the american cancer society's latest annual report that was released today. here's jane king with the other news and the wellness report.

>> add another disease to the list of illness that may be thwarted by regular aspirin use. prostate cancer. men who took at least three aspirin tablets a week reduced the risk of dying from pros tat cancer. we're launching a smart shoe, wireless headphones and other fitness gadgets. for $150, there's an actual product that promises to monitor your brain waves and lull you to sleep. it's called the sleep shepherd. it is now hitting the market. consumer reports tried it out and says it functions like a personal white noise machine. reviews on amazon are mixed.

>> abc 7 news at 4:00 does continue. up next, the first real test of san francisco's new short term. and the neighborhood taking a stand against it. here's a look at what's coming up on abc 7 news at 5:00. >> alma, larry, thanks very much. it's like a who's who of tech watching. you'll find out why. and education wins big. the latest indication that the state is rebounding big time from years of economic. those stories and more when

let's take a look at what's ahead here. beyond the tank followed by the two hour series premier of my diet is better than yours. >> for the first time since san francisco's so called air b&b properly laws took effect, a

property owner is allowing her to take it off the market to use exclusively for short term rentals. >> we're joined live from city hall with the details. >> well, you know, with eve heard a lot about air b&b. the property owner in this case uses vacation rentals by owner. and what happens to her could be an indication of how the city plans to handle illegal rentals. >> protest signs have gone up, warning of a proposal to allow a hotel in their backyard. >> i don't think it's a good idea at all. >> for decades, the owner of this three-unit building has been renting all the apartments on the vrbo web site, violating city law. >> because they didn't go through proper channels, she's been sort of, you know, sneaking and taking away the opportunity for people to rent out the property.

>> now asking the san francisco planning commission to technically allow her to have a hotel, basically legalizing her illegal activity. commissioner dennis richards is skept wall. >> to me, it could be considered rewarding bad behavior. >> the commissioner says there are at least 8,000 short term rentals on sites. but only 800 people have registered with the city as now required. >> critics say disobeying the law showing a lack of enforcement that allows rent control units to be taken off the market in the middle of a housing crisis. >> the attorney says his client just wants to do what she's been doing for years. >> she would like to continue what she's been doing for the last 23 years. >> the planning commission staff recommends her hotel proposal be denied. in san francisco, carolyn tyler,

abc 7 news. >> thank you so much for joining us at abc 7 news at 4:00. >> abc 7 news at 5:00 starts now. >> getting to the game could be a rough ride for passengers and transit officials. >> school under fire. an investigation into alleged child abuse as more parents come forward. >> stock plum mitts, those hit hard and what's happening in asia right now. >> elnino stirs things up much to the delight of bay area surfers. >> right now, we're in a break, but there's more rain coming for the weekend. i'll have details coming up. >> abc 7 news starts right now with live, breaking news. >> and that breaking news is a series of terror arrests conducted by federal authorities today.

agents arrested one man in sacramento, houston and mill wall wee. >> just identified moments ago as muhammad. they believe they were in contact with and tried to provide assistance to isis. the plot has been linked to other u.s. cities. but at this time, there's not going to be a threat to public safety. >> we'll move onto our other big story tonight. the state has now opened an investigation into alleged child abuse at a bay area school. documents obtained dozens of police calls for violence between staff and students at tobin world. this is after a teacher's aide was arrested for felony abuse. laura anthony is live in richmond with the story. >> that teacher's aide remains here at the west county jail on $100,000 bail. she could make her first court

appearance as soon as tomorrow. in the meantime, we've learned from those police records about a disturbing history at three locations. >> this is not the first time an assault has occurred at the campus. public records show that over a six-year period from 2008 to 2014, there were 35 reported episodes of violence between staff and students at three tobin world locations in antioch. >> she filed a police report on her 15-year-old autistic son came home with bruces and scrapes she says he could only have gotten at school. >> he was pushed down on the floor. and he had marks on his