u.s. stocks rising this morning as bargain hunters look for deals. future of the big board at the new york stock exchange. you can see right now the dow is up 110 points. the stock market is rebounding from yesterday's plunge of more than 600 points right now. remaining under the 11,000 mark. good morning. i'm kristen sze. >> i'm cheryl jennings. federal reserve meets in a few minute and economists hope they will announce more help for the troubled economy. >> eric thomas is live in the newsroom with more. >> the market is waiting to hear from chairman ben

bernanke if the federal reserve will use the few tools it has left to boost a slowing economy. among them, a firm commitment to keeping interest rates near zero. a potential third round of buying and holing on to treasury bonds. >> when the opening bell rang this morning on the san francisco floor of the new york stock exchange, traders had their fingers crossed. >> traders are optimistic after so much selling that we could have an up day. >> the selling peaked with a 634-point drop on the dow yesterday. in response to the downgrade of america's credit rating from standard & poor's. >> this is an abnormality. we never see a market down 600 unless something is extreme. being downgraded for the first time was extreme. >> s&p said it didn't see the political will in washington to solve the country's debt and deficit problems. the ratings agency then downgraded fannie mae and freddie mac which could send mortgage rates higher, and state and government bonds could be the next to take a

ratings hit. even so, traders and investors say there is only one place to put their money. >> if you look at europe, the number one issue of bonds there is italy. what is your choice? italian bonds or united states bonds? oh, say with good old uncle sam bonds. >> a live look at the big board. the dow is currently up 127 points. it keeps flirting with the 11,000 mark. it has been over it and now back under it. economists worry a third round of buying t-bills by the fed could increase chance of inflation. others believe the situation is so bleak they will have to resort to stimulus programs. fed chairman bernanke begins speaking in a few minutes and we'll let you know what he has to say. kristen? >> all right, thanks a lot. all hands on deck for oakland police in one violent plagued neighborhood after a 3-year-old boy was shot to death in a drive-by yesterday. the city is also issuing an you are urgent call for help from federal and state law enforcement.

nick smith is live at 64th avenue and international boulevard with the latest. nick? >> good morning. community members are outrage and veteran law enforcement officials say this this is completely unacceptable. even now, people continue to gather over my shoulder less than 24 hours after carlos was killed by a stray bullet in a driveby. members continue to leave candles and stuffed animals. the crime was seen as brazen by residents because of the location and time of day. witnesses say they heard at least ten shots and saw people diving for cover. little carlito was hit in the neck sitting in his stroller. neither he nor his mother were the intended target. tactical alert by oakland p.d. remains in effect and investigators are combing the neighborhood for the car involved. this mother of six did not know carlito but could empathize with the family and the pain. >> wrong place, at the wrong time. that is the key. all i can say now is i hate that he had to go like that.

>> back here live, you can see the family members continue to gather. people who did not know carlito are still leaving messages of love. we did just finish press conference with the the oakland p.d. who tell us they expect to have the investigation wrapped up soon. the implication is the investigation was producing results but hay would not give details. for the latest, catch cecilia vega who will have a live report at 4:00 and 6:00. for the latest, go to the website at abc7news.com. live in oakland, nick smith, abc7 news. >> thank you. early morning housefire killed one person in martinez. it started before 5:00 in a single family home undergoing renovation. firefighters say when they arrived at the martha drive residents they encountered heavy smoke and flames coming from the window of the house. that is when neighbors

notified them someone was still inside. >> a search was conducted an occupant found deceased in the home. >> the victim has not been identified yet but described as 16-year-old male. neighbors told abc7 the victim had a lot of candles burning in the home. however, investigators have not determined what caused the blaze. damage estimated at $100,000. >> the morning, president obama honored the 30 soldiers killed when the helicopter was shot down in afghanistan. the president was there as two planes brought back the troops in dover airport base in delaware. she meeting privately with the families of the fallen, many of whom were elite navy seals. steven partnoy has the latest. >> reporter: the remains of the fallen heroes returned to dover air force base on two c-17 planes. it's a process the military calls a dignified transfer and it's time for families to share the grief. kimberly vaughn will be there. her husband aaron was among those killed.

in the greatest single loss of american life in afghanistan since the war there began. >> i am afraid i'll forget what he smells like, what he feels like. i miss him. no other way to put it. >> 30 americans died saturday when taliban insurgent fired rocket-propelled grenade at the chinook helicopters. top military commanderers say it's not a sign of taliban gaining strength, just unfortunate lucky shot. >> the taliban were able to set up an ambush and fire on the helicopter as it came in the landing zone. in a time when the helicopter is most vulnerable, slow, predictable. and greatly increases the chances of taliban knocking the helicopter down. >> most of those who died were member of the seal team six, the unit that conducted the raid that killed osama bin laden at the hide-out in pakistan. none of the seals killed in the crash took part in that mission.

>> tea were far from -- they were far from home, doing what they wanted to do. >> arrivals at dover are open to media coverage when family of the fallen give their approval. but today's will not be, because the bodies of the seals, soldiers and airman have not been properly identified. steven portnoy, abc news, dover. ed lee is out campaigning for second day today as official candidate as mayor. he took heat last night at a debate for changing his mind about rupping after being appointed to finish gavin newsom's term, who is now the lieutenant governor. tomas roman joins us from the mission district. a big difference between today and last night. >> he got a much better reception on 16th street today. the mayor, mayor lee, brought his brand new mayoral campaign to the mission district today saying this is his first ever campaign so he has to be prepared for anything but admits he was taken aback by some of the comments of the opponents at a community forum last night.

>> good morning. how are you? >> good. how are you? >> he was all smiles today. he shook hands and declared to anyone who would listen he was mayor and running for election. a much different scene from last night where the reception was mixed. [ cheers and boos ] >> mayor lee had a hard time answering questions. he kept being interrupted by hecklers in the castro theater. lee says you have to expect this behavior in san francisco. >> i mean i expect any kind of response when you are working in san francisco. diversity of opinions. that's what i love about the city. i appreciate that. >> he didn't get a lot of love from other candidates. supervisor david chiu and city attorney dennis herrera threw verbal barbs at lee for changing his mind for running for office. >> one regret i have is that we all took him at his word. obviously that has changed. >> after talking to powerful people, he decided he would

throw his hat in the ring. san francisco voters have a legitimate question whether he is his own man. >> i explained my decision to them. hopefully understand that. this is not about benefitting myself. i've been in government 22 years and i want to keep this going. >> other candidates warned him it could get run if he runs. >> it will be heated and hot, they warned me. i said okay, i'm ready for it. >> mayor lee says he has been mayor for seven months and managed to change the tone in city hall and he says he likes the change so much he would like to keep it for another four years. reporting live, i'm tomas roman. still ahead, violent riots in london continue as it spreads to three other cities in the u.k. what police are threatening to do if the lie yotters don't -- rioters don't stop. >> another bump on the track for the california high-speed rail proj

(speaking in international language) and he said unto them

go ye into all of the world and preach the gospel preach the gospel  ♪very creature in the world. (applause) 16,000 police officers are patrolling the street of london as part of a ramped up effort to stop more riots. prime minister david cameron called parliament back from the summer recess to deal with the crisis. wave of violence raged across the cap stall for three days. looters burped buildings, smashed cars, broke in stores and pelted police with bottles and fireworks. one man was killed, found shot dead in the car. violence spread to three more major cities. the prime minister david

cameron had decided not to call in the military to help restore order. >> we will make sure that the court procedures and processes are speeded up and people should expect to see more, many more arrests in the days to come. >> some of the looters do not appear to have a specific cause. unrest began saturday when protesters marched against a deadly police shooting of a 29-year-old man killed in disputed circumstances. as many as 25,000 people in japan may be able to return to their homes after six months. japan has now lifted evacuation advisories in areas more than 12 miles from the tsunami damaged nuclear power plant. more than 80,000 people fled their home after the quake and tsunami disaster that caused the plant to meltdown. the officials at tokyo electric power and government said the reactors stabilize. and the amount of rediation released is minimal. >> the white house announced the country first ever

effort to regulate fuel consumption on trucks and big rigs. the plan increases fuel efficiency on semi-trucks by 23%. other vehicles such as city buses and garbage trucks need to show 10% improvement by the year 2018. heavy duty pick-up trucks used by contractors and small businesses must increase gas savings by 15%. the announce comes two weeks after president obama announced more fuel economy for trucks. environmental impact study puts the cost for initial segment at anywhere between 10 to almost $14 billion. that is way above the $7 billion projected in 2009 for the merced to bakersfield route. increase is blamed on higher cost for building elevated tracks along the central valley. construction of the first leg is set to begin next year. we have this just in from the state controller's office. california has seen a half billion dollar drop in tax

revenues. that means the state could face so-called trigger budget cuts. under the new budget that governor brown and democrats approved, a number of automatic budget cuts affecting schools and colleges and other departments will take place if the state revenues do not reach $4 billion. apple has just become the most valuable company in the country. the cupertino company stocks gained 3% bringing the market capitalization to $338 billion. surpassing oil giant exxon-mobil. that happened in the last half hour of trading. other big name corporations such as wal-mart and general electric don't come close. apple soared on the popularity of ipad and iphones. meteorologist lisa argen ahead with the forecast. >> it's nice and sunny out there right now. although, it's still cool across the bay. the sun is out in oakland. only 56, though. we look at 70s inland. still dense fog at the coast. let you know about a change in the weather coming up. >> all right, lisa. thanks a lot. while you might soon get

your health insurance at the drugstore. >> how rescue crews saved a dog left inside a car where temperatures reached 135 degrees.

firefighters rescued a dog after the animal spent 90 minutes in a locked car. the couple parked their survivor and go in to the shopping center 1:46. mall security later discovered the dog inside the car with the windows slightly cracked but the time firefighters arrived the interior temperature of the jeep is 135 degrees. crews broke in the car and rescued that dog. no word if the own her have to pay for the rescue or face criminal charges. >> good reminder. even when temperatures cool like in the bay area, inside the car, different story. >> we are look at a warm-up, below average in general. head outside now, the marine layer is scattering out. view from mount tam, with low clouds in napa. elsewhere, sunshine. sea breeze, yes. it's still becoming on shore today. keeping the coast cool.

oakland is 56. where the low cloudiness has been sitting, cooler temperatures. but the marine influx is not making it today. east of the valley. so we're going to heat up in the sacramento valley. but 24 hours ago, we were cooler everywhere. except for mountain view and los gatos. five degrees warmer. clearing to the coast. little sunshine at the golden gate bridge. it will take all afternoon to clear there. we are look at a mild to warm day today. warming trend. we are getting used to cooler than average weather because the fog is staying put. the central coast, watsonville, foggy and monterey. this will begin to disburse and peel back, but not totally. think you will stay cloudy along the central coast.

we see more clearing here and steady sea breeze throughout the afternoon today. set-up, typical. high pressure in eastern pacific. the troughs, well, for the time being, one moved through. evidence warm-up in day -- we have a warm-up in the day ahead. a couple degrees of warmer. but nothing extreme. across the state and central valley, heating up in fresno. 96 there. 71 in big sur. 78 in los angeles. back home, upper 70s. sunny throughout the day. 7 in 7 cupertino. it will take time to see the sun throughout san mateo region. 69 in millbrae. south city, cloudy. we will look to brighter conditions in sunset throughout the day and afternoon.

north bay, 82. you will warm up, and the mid-60s today. 74 in fremont. mid-80s again in inland valleys. the fog, 2:00 or 3:00, giving wi at the boardwalk. cool afternoon, 60s there. a look ahead, carbon copy tomorrow. slight dip coming our way on thursday. we want to keep warming up subtly. we'll get a little sun on the weekend at the coast. next time you get your prescription filled at walgreens you may be able to sign up for health insurance. they are planning to sell health insurance this fall. drugstore will sell policy with different price range and coverage levels through

private health insurance exchange. wal-mart isn't commenting officially yet but a spokesman says they look for options for healthcare reform the new healthcare law mandates the public exchanges be established by 2014. we just have word now from the federal reserve, we said they were meeting this morning and the federal reserve announced it will likely keep the interest rates at the record low levels for another two years. the fed announced to keep the key interest rate near 0% through 2013. look how stocks are doing. yesterday was a record plunge. it's down 56 points and it will go up and down throughout the day. we keep you posted on that at abc7news.com. all right. we all know arnold schwarzenegger likes a good cigar. >> we heard that before. well, why smoking habit could land him in jajail?

today at 3:00, on 7 live, the woman willing to give up her forthune cho find true love. and whether you're trying to clean up your credit or get the best interest rate, michael finney debunks the myths. and tim lincecum's pitching style? how do you show him your best stuff and get a chance for a swing from the

pitcher? we have that story and more at 4:00 and 5:00. >> we could do his hairstyle maybe. >> anti-smoking group in austria wants to sue arnold schwarzenegger over a cigar. >> it says schwarzenegger was puffing on one when he arrived at the airport and it's banned. but the officials say the cigar was not lit. >> a legal expert says schwarzenegger can ignore the request to respond because illegal smoking charges are not covered by treaty. only puffs around here are clouds. >> a few puff of fog and more sun. >> thank you for joining us. >> "who wants to be a millionaire" is next. ♪ [ female announcer ] there's no right way or wrong way. every baby plays by his own rules. and they need a diaper that lets them do it.

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