>> reporter: good morning, i'm christie smith, live in hayward where the case of the missing nursing student has turned into a homicide investigation. what police have to say, coming up in a live report. is the wrong man behind bars? what could save the man accused of beating bryan stow. >> they destroyed by family. they killed my baby. they killed part of my soul, too. >> words from a heart broken mother.

how she tried to shield her son with bullets after being ambushed outside a baby shower. it is tuesday, june 7th. this is today in the east bay. good morning to you. i'm laura garcia-cannon in for scott mcgrew this morning. 4:30 now. time to check the east bay forecast with christina loren. >> good morning to you. good morning to you in the east bay. we have a great day on tap. we are going mid-70s. maybe a little bit warmer, maybe upper 70s for the afternoon as the big ridge of high pressure has built in. that means clear conditions. we have a bit of the marine layer this morning. we are going to start with cloudy conditions. i have the full forecast coming up in moments. for now, let's check the drive

with mike. >> the maze -- we have activity on the east side of the bay. further south, the transition off 92 coming over the bay, it looks like my clicker is not working. the connector off 92. westbound 92, getting off 880, there's an accident near the off ramp. we'll watch for activity. no injuries there. a car went over the embankment. that could be a problem. back to you, laura. >> thanks, mike. from missing person to murder victim. the heart breaking development for the family who thought they would see michelle come home safely. christie smith is live with a family's grief and the determination to find her killer. good morning. >> reporter: good morning to you. this case has taken a grim turn.

her family has not given up hope they might see the nursing student alive still. she was last seen going on break may 27th near the med center here in hayward. according to police, evidence leads them to believe she was killed during a confrontation at the med center parking garage here in hay waiwarhayward. she told colleagues she was going to her car to get things on break. when she didn't return, they got worried and called police. >> based on information we have collected, this is now classified as a homicide. >> reporter: the police said they have questioned a number of people, but will not say who

they might be focusing on. forensic evidence and video evidence from the garage leads them to believe she was killed. her family has been critical in the pace of their investigation wanting the fbi to take over. hayward police are not taking it personally though they are continuing their investigation at this point reward money stands at $65,000. reporting live in hayward, christie smith. the suspect in the brutal beating of bryan stow may be cleared. attorneys for the man suspected of beating bryan stow say they have video footage that could clear their client. >> a judge issued an order from destroying surveillance video.

lawyers say hotel video shows he had a full head of hair. the suspect was described as being bald. >> now to the peninsula where police have two in custody. the suspects are just kids themselves. police are charging a 17-year-old boy with murder. officers say the two boys ambushed a family in east palo alto as they were leaving a baby shower. 3-year-old was killed in the cross fire. his mother tried to shield him with her body. >> i thought i had protected my baby in the car seat, but one of the bullets went into his head. i didn't realize until i saw him crying. i saw the blood from his head. i took him out of the car seat

and he had a hole in his head. >> simply tragic. police believe the teenage suspects were out for gang related revenge but targeted the wrong victims. pg&e could face new fines. they are asking for more time to come up with records. bad wells are being blamed for the san bruno explosion that killed 18 people and leveled them. they threatened to find millions of dollars. the matter goes before the judge within the next few days. the crews have been working throughout the night. 6,000 people have been without comcast cable or internet since 7:00 last night when a traffic accident took it out in oakland. crews have been working to take care of the cable. as of now, there's no word on

when service will be restored for everyone. by the end of the day, people will see a spike in what they pay in sales tax. if the measure is approved, richmond is one of a handful of cities with a tax rate of 10.25%. if it gets cut, they have to cut $2 million from the budget. it covers police, fire and public services and will be approved, june 21. a hospital says it could declare bankruptcy for the second time in five years. they say they need cash, fast to deal with the $15 million operating deficit. the hospital needs to upgrade the safety requirements that could cost millions. they say there are no plans to close the hospital despite financial issues. the hospital is talking with

kaiser permanente to see if they can help. jails could see an influx saying prison is cruel and unusual punishment. up to 800 state inmates could be sent to jails in the next 18 months. that would put them at capacity. there's an average of 4,000 inmates a day. all right, let's check the forecast with christina loren. >> good morning to you. in the east bay, you are one of the warmest areas. break out the short sleeves and shorts if you want to. temperatures are going to climb to the mid to upper 70s. high pressure dominates the forecast. we have a bit of a change on the way as the high pressure tries to inch into the bay area over the weekend. i'll let you know what that

means. you can see a little bit of moisture around. we are expecting a significant round of fog and a deep marine layer, it's about 1500 feet. we are watching out for that. right now, nice and breezy. mike will be around to let you know if it's impacting your bridge drive. we are headed toward the 70s. a gorgeous day. 72 in san jose. 75 in santa rosa and we are climbing. hi, mike. >> good morning, christine. i'm here. we are looking at highway 4. there's the construction at eastbound, full closure. it should pick up in 20 minutes. it's a little earlier than past weeks. a smooth drive westbound. highway 4 at 242, 680 across the bridge. no problem from the north bay to the east bay and continuing down

or up. san ramon not showing construction spots. here are the travel times throughout the bay. 680 is looking nice throughout the area. we get a live look past the coliseum. now, we are looking at construction. the flashing lights, lanes blocked from high street up. watch for a little slowing as crews start to move in a half hour. we'll watch as that activity changes. a massive wildfire burning out of control more than a week is now double the size from sunday. windy conditions and lightning are helping the fire spread in eastern arizona. about 3,000 people have been forced from their homes. as 2500 firefighters try to contain the blaze. this is the third largest wildfire in arizona state history. there are no reports of serious injuries.

coming up, fill 'er up. california no longer has the most expensive gas in the country. will the prices stay down? could live strong die hard? why they could lose up to $10 million. buckle up your seatbelt. we are in for a bumpy ride. more twists and turns ahead on the road to the state budget. if you are thinking now what, you have two minutes to find out. stick around.

and this is a live look inside our control room this morning. kind of see me in the middle screen? look down there. that is the director. she's going to be the heart of the show. she'll get mad if i don't get off this shot quick. they do the hard work, including the producer. the state budget battle could take a backseat as many fight to save their jobs. on friday, the state will release the new redistricting map. it will change the political landscape of the state overnight. lawmakers try to win over new voters. if lawmakers do not pass a

budget by june 15th, they will forfeit their pay. they have to come up with an agreement with what to do with the $26.4 billion deficit. the engine might be stalling on state budget talks. when it comes to filling up the pump, now is the time to do it. right now, it's below $4 a gallon statewide for the first time since march 21st. average cost is $3.99. it's down. right now, california does not have the most expensive gas in the u.s. right now, the honor goes to illinois. keep in mind, gas prices here in illinois, still almost 93 cents higher than they were at the same time last year. a key player on the president's financial team is leaving his post. plus, play station tries to

rebound. let's turn to bertha combs with more. >> we have been down four days in a row. big losing streak. today, the big event is going to be ben bernanke. he's going to be speaking this afternoon. likely going to talk about the slowdown in the economy and economic data. we are going to get data on consumer credit and whether we have all been cutting back on using our credit cards. the dow is going to start just above the 12,000 mark. we saw yesterday a 61 point loss in the dow. a 30 point loss on the nasdaq. it's going to fight to hold on to 2700 after closing at 2702. a big change at the white house. top white house economic team member is stepping down less than a year after being named the chairman of the economic

advisers. he's going back to teaching at the university of chicago. it leaves tim geithner as the only team member from the original economic team. he's been one of the most visible spokes people on the economy. sony takes the wraps off the new gaming device. they call it play station vita. it's in time for the holiday shopping season. the wi-fi version is $249. the vita does everything, front and back cameras, touch screen, touch pad. sony, again, yesterday apologizing for the hacker attacks that took down the online play station gaming network for awhile. the company says all is almost forgiven. about 90% of players are back on psn network.

so, there's still 10% that are holding out. that new play station vita sounds interesting. i'm hoping it does windows, too. >> i can see you sitting there playing during commercial breaks. >> wouldn't that be fun? a man will face 21 months in jail. he scammed a new jersey investor out of $300,000 claiming he was promoting a series of mariah carey concerts in dubai. he will have to pay back nearly the full amount. in the meantime, lance armstrong may lose 10 million dallas. the foundation could lose 10% to

20% of donations if doping charges prove to be true. it brought in $48 million last year largely from selling yellow bracelets. federal investigators are looking into accusations by a former teammate that he says he took performance enhancing drugs. armstrong insists he road clean. let's look at the forecast. christina, how are we looking? >> it's going to be a gorgeous day. we have been waiting for the beautiful weather we have experienced. the high pressure is moving in as it does and we are going to see a nice day. temperatures will climb into the mid-70s. the east bay is one of the warmest areas across the bay. the cloud cover will break apart. we are going to start with mostly cloudy conditions. the marine cover is deep enough to pick up on the satellite

imagery about 1500 feet. even livermore is seeing the overcast conditions to start. we are starting out nice and mild temperature wise. upper 50s. hayward, 57. from san francisco to the bay area, uniform conditions. you can see we are looking good later on today. temps are going to climb into the 70s. it gets better for the seven day outlook. look at that. an 80 degree day on thursday. >> what? you tease. >> it's not hot time in the summer city but not bad. not bad at all. >> we are not complaining. coming up, bringing out the worst in anthony weiner. will he be able to keep his job? as we follow these folks on 580 westbound through castro

valley.e the nimitzhow you wher is going to have problems.

good tuesday morning. look at that. you made it to tuesday morning. here is a live look outside the bay bridge. those folks up and at 'em as well. 4:53 now. democrats are going after

one of their own promising a full investigation into congressman anthony weiners lewd photo scandal. nancy pelosi wants to find out if he used congressional resources sending photos to women online. he admitted to sending the pictures after saying he was the victim of a hacker. he says he will cooperate with the investigation. in the meantime, a seattle woman who got one of the lewd photos was voted as most likely to be involved in a tabloid scandal. there's a picture of her with a caption above it. she didn't ask for him to send the photo. she writes, i never lied, i never solicited a picture or ingauged in inappropriate exchanges. we are going to go live to los angeles for e-3.

if you are a gamer, you are going to love what's coming out. if you are not, you may be convinced to become one, perhaps. a lot of folks are excited about the new halo game coming out. those stories and more coming up. you have probably heard of sit-in protests. today, people in oakland will have a read-in protest. they will gather at 5:30 tonight to protest budget cuts. it will leave four libraries open for a few days a week. protesters will read and sing songs. oakland faces a deficit this coming fiscal year. the oakland coliseum is the o.co. overstock.com is changing the name today.

they have a naming rights that will pay out $7 million total. you said for now, mike. you don't think that name is going to last? >> it was overstock.com when i was talki ining about it. i knew there were going to be changes. 0.co rerouted. maybe they are going to change it. that's what's going on with the report. we are looking at 880 and 92. the interchange in hayward. we have an accident brewing over on the side toward the san mateo. a car is a few hundred dollar feet. the tow truck couldn't handle the situation. it's not blocking any lanes. we'll get a live look from the toll plaza and show you a smooth drive. the taillights heading to the

peninsula. no major windy conditions on the side. past overstock.com or o.co. >> the supercenter. >> that would be great. those lanes will clear, a traffic break when it happens. if i can catch that, i'll let you know at home. >> thanks so much. it's hard to lead a normal life when you are one of the most famous couples in the world. prince william and his wife hoped to live quietly in a rented home. can't they afford to buy? they are looking for a few helping hands. a housekeeper, valet and dresser. this, according to the telegraph. the duchess will be doing the interviews. they can get whoever they would

like. we'll be right back. wlap