complete bay area news coverage starts right now this is ktvu channel 2 news at noon. stock markets are dropping again. more ripples through the economies today after more down grading. good afternoon, i am maureen naylor. we begin with today's sell off on wall street. we want to take you to show you the latest numbers. the dow is down 522 points,

under the 11,000 mark. we saw stocks drop 550 points. it's the first time they fell below the 11,000 mark since november. a sell off was expected on this first day of trading since standard and poor's down grated the debt and the volatility has been felt across all markets. president obama addressed the nation and offered his opinion on the credit down grade saying the u.s. is and has been a aaa rated country and many investors would give the country a aaaa rating. >> we need a balanced long-term approach to deficit reduction. that was true last week. that was true last year. that was true the day i took office. and we didn't need a rating agency to tell us the grid long in washington has not been constructive. to say the least. >> the president spoke from the white house and issued a plea

to congress to focus on job growth. he asked for an extension of payroll tax cuts and pushed for programs to bay town the -- pay down the deficit. jade hernandez is live now. >> reporter: the housing market was looking at the down graded credit ratings of freddy freddy mac. today stocks on the new york stock exchange plunges and endicacies were down. all eyes have been on the market today and then the president held a conference addressing the credit rating. we spoke to an analyst who says president obama stressed the problems were solvable. cuts to defense and domestic

spending are a step in the right direction but congress needs to extend unemployment insurance and payroll tax. >> effects everybody's life. mine included. some more than others. >> if you are thinking about buying real estate, one of the only games in town for investment, might make it pricier. >> reporter: those are just a few comments from folks we heard from today. the president made no mention of the mortgage situation. standard and poor's down grated fannie mae and freddy mac. the down grade may force anyone looking to by a home -- one said there is a bigger picture to consider. >> this is not the end of the world and remember america is still the gold standard.

nowhere else to invest in quality debt instruments. bonds that pay interest. >> reporter: analysts said traders are shifting out of the bonds and european banks are snapping up u.s. debt to shore up for a finance crisis but there is still debate on whether the credit rating will have an effect. jade hernandez, ktvu channel 2 news. >> thank you. we have more details now on what is behind the sell off and more perspective on the situation. ktvu's tom vacar joins us live in the news room. we expected the was going to be a sell off but do you think this big of a sell off was a surprise? >> reporter: no. if it happened friday, standard and poor's lowered the rating friday after the market closed it would have been bigger on friday so people had time to think about this. when you are down more than 500 points for, a moment we are

down 600 points, tells you the confidence in the market is not there. what is that about? that big deal everybody was talking about a week ago to do it the debt ceiling, it is so unimpressive and kicks the can down the road. that has not impressed the market at all and then we have the problem in europe, with the debts of spain and italy. so as a result you have this going on and then you have the super fast computers doing all the trading, no question something big was going to happen, the question is, when do the people looking for bargains come into the market. that's the big question. i can tell you this, it f you had the average amount of money in a 401(k) right now, about $7,000, let's say that was the

peak in 2007, 4 years later you have $40,000. this markets has been brutal to the average investor. >> mike, you talked about with such reaction to see that, adding to the fears out there. tom, thank you so much for joining us. thank you. for continuing coverage of the reaction to the cret down grade go to www.ktvu.com, we will have the latest numbers there. click on the wall street tab. in other news, in the last two hours police announced they arrested a suspect in the stabbing debt of a 14-year-old girl 30 years ago. the victim was tina faelz. other students found her body in a drainage area and police conducted a massive search that time looking for the weapon used to kill her. using dna evidence police arrested a 43-year-old man who

say was a fellow student. >> the suspect arrested was 16 at the time the murder occurred. this case has been forwarded for review and charging. the suspect's identity will be released by this department as soon as the suspect is cleared of the juneival system. he said he told tina faelz's mother yesterday about the arrest. she said she knew sandpiles would knock on her door with news. 'em sel now officially running to keep the tite of san francisco mayor. ktvu's allie rasmus was there and has why ed lee changed his mine. >> reporter: his mind. >> reporter: good afternoon. ed lee walked into the elections' office, filled out the paper work to make himself a official candidate for mayor.

he has been the mayor since january. board of super visors voted to give him the post when gavin nusesome list. today he explains why he changed his mind. >> i have been a man of my word and i hope that people will see and understand why i made this change of mind. >> reporter: [ inaudible question ] >> reporter: while lee was filling out his paper work a man shouted criticisms at lee for going back on his pledge not to run. san francisco police removed the man. we talked with david chew, he says his vote would have been different if he knew ed lee was going to change his mind. >> ed lee told lof us when we considered him to be mayor that he only wanted to serve as an

interim mayor and he wasn't going to run for office and he has broken that commitment to san francisco. >> i think it remains to be seen how him breaking his pledge will impact his relations with the board and whether they will trust his word. >> reporter: he isologist running for mayor so are more than 30 30 other people. live, allie rasmus, ktvu channel 2 news. >> thank you. >> and tonight ed lee faces off against his opponents in the mayors race. he is expected to take part in a forum. the long list of candidates include david chew, peer, dennis herrera and ye. the families of 30 u.s. troops killed in began gan over the weekend are mourning their lost. the troops were on a helicopter rushing to help army rangers

who came under fire. their helicopter was shot down. nato secured the crash titecyte and all bodies were recovered. among those killed were 22 members of seal team 6. although the u.s. says none of the specific members killed were involved in that mission. police are investigating a deadly shooting after a man was killed by driving his suv. officers responded to a hit and run about 8:40 last night. when officers got there they found a man dead inside a suv. it rolled over into the media. cameras could help them determine what happened. an stapes scheduled for this week. >> authorities identified a 19 man who died yesterday when his car went off highway 101 and hit a tree. investigators say daniel cox

was driving between 60-70 miles per hour in his dodge magnum when it drifted off the road. it was a year ago that daniel cox drove his car into shallow water at south lake tahoe and broke his neck leaving him paralyzed. he was alone at the time of the crash. there are reports of another patient attack on a staff member at napa state hospital. according to a technician a patient choked a staff member saturday morning. it happened behind the fence, an area for violent patients. part of the hospital was under lock down. last week mike allen took a tour of the facility. >> when i went to one unit i observed an attack, a patient was attacking another and five staff members had to go in and bring him down and medicate him. the questions i have, we are still waiting for more staffing

for the hospital, waiting for an alarm system. >> he is promoting a bill requiring medication for patients who refuse medication. we got more information about the weekend riots in london. that's just ahead. and mark tamayo says it's true, some bay area cities are about to warm up. we have details and the forecast just ahead. units got in, knocked the fire down. >> the overnight house fire, we will tell you if anyone was hurt. [ female announcer ] every box of general mills big g cereals can help your kids' school get extra stuff. they're the only cereals with box tops for education.

you can raise money for your kids' school. look for this logo... only on big g cereals. you can make a difference. every cereal box counts. and safeway's 10% back to schools program, now there are two ways to earn cash for your kids school. from august tenth through september thirteenth look for products marked with the yellow bus and earn even more by signing up for e-box tops at 2ways2earn.com.

. oakland police called off the search for a suspect who led them on a chase. started 4:00 this morning in downtown oakland. the driver entered interstate 880 at 90 miles per hours and exited at 66 and crashed into a fence and bushes. the driver ran from the scene. officers and police dogs weren't able to catch him. >> we learned the number of people arrested gone up

following a weekend of rioting in london. the government announced 215 people were arrested. it started saturday night after a protest against a deadly police shooting got out of hand. 35 police officers were injured after protesters threw bottles with gasoline. two san francisco women are treated for serious injuries after being rescued from a burning home. the fire broke out at 11:30 last night on jackson street in pacific heights. firefighters say smoke was seen coming from the second floor when they arrived. neighbors said two people were trapped inside. >> smoke coming from the top floor. two people were unaccounted for. they were both pulled out. >> a woman and her care taker were sent to the hospital for

burns and smoke inhalation. they found cigarettes in the bedroom and believe that may have started the fire. today san francisco police kicked off their pedestrian safety campaign in the south of market area. officers on foot, cars and on motorcycles are putting extra enforcement on traffic and pedestrian laws. police say they had the highest amount of traffic related injuries and deaths. on s.a.t. they handed out fliers to bring awareness to pedestrian. >> the phillies fan involved in a hit-and-run accident is recovering. ryan white of philadelphia was hit by a truck after the giants game thursday. he is still in critical condition but making small improvements. he was arrested after the accident and expected in court tomorrow on dui and hit and run

charges. power politics playing a role in donations. since governor jerry brown took office they received $1.5 million in donations from various groups. donors also gave a million to the oakland school of the arts. governor jerry brown was the major sporter. he insists the donations have no effects on the decisions he makes. drop side baby cribs are still for sale. they were banned a month ago after 32 debts. -- debts but the cribs are still sold on craigslist and ebay. craigslist said it updated its notice but sight users are

responsible for their listings. all morning long we have been tracking clouds already starting to lift across the area. san jose 74 degrees. a bit of haze out there, clouds coast side. here is a look that weather story for your monday. clearing skies near the coast. tomorrow morning cloud cover glen. temperature as touch warmer than today and the extended forecast, no major temperatures. cool temperatures for the beaches. few more mid-80s to talk about. current numbers, santa rosa 68. livermore 76. more sunshine for the interior. stubborn fog near the coast and san francisco. only in the upper 50s. today's forecast, fog this morning. for this afternoon for the coast. 58-83 degrees and by 7:00 the fog will be increasing. 55-68 and 10:00 the fog targeting the coast and bay

with the temperatures in the 50s to right around 60 degrees. we have been talking about the marine layer and the low pressure moving in and as a result the beaches on the cool side, skies partly cloudy and breezy. interior, more sunshine. winds pick up into the afternoon hours 15-25 miles per hour. here we are this afternoon. fog still a factor coast side. few patches around san francisco. 4:00 this afternoon the clouds increasing again throughout the evening. 10:00, once again a big dose of the fog pushing back into the bay, possibly drizzle. especially coast side tuesday morning. temperatures this afternoon, not a big change from yesterday- highs. most areas 2-4 degrees. astros 87 and san san mateo 81.

look ahead with your extended forecast. you can see what we are thinking, temperature's inland wednesday 86-87 degrees. holding steady on thursday and we are looking forward to the weekend. you can see temperatures back up inland. going conservative here, 80s by sunday. few temperatures approaching ninety degrees. we will keep an eye on that. typical summer time weather pattern with temperatures below average. >> just seems stuck in the same trend. weird to hear 90s. thank you. this week the east bay regional park district they want to take out trees as part of a fire safety plan. the proposed settlement would slow down the pace of removal

but that upsets some homeowners. california may see more drastic budget cuts. revenues fell $80 million short for june. that puts california on track to fall below $4 million in revenue gains. lawmakers are counting on that to close the deficit. if the money doesn't come in some could face more cuts next year. the park is one of four parks scheduled to close because of state budget cuts. tony says the park generate $500,000 a year from kamacite rentals and could be operated to break even. he says if it doesn't he will cover the balance. last year the state cost the government $750,000 to operate.

>> still ahead, the safety concern and recall for a popular u.s. made car. right next to my posh castle! i'm sensing a theme here. well, i am the queen, dear sister. get your annual ikea catalog today.

. we want to take you back for a live look that big boards. dow down 400 points. it was down 600 points briefly. started out down and going down since. rallied back slightly from 600 points. see seen the down numbers

across the board. down down 400. nasdaq down 112 points. standard and poor's down 52. >> investigators are looking into problems with fords mustangs and jettas. 30 complains have been filed about mustangs with manual transmissions. drivers reported in ability to shift into gears and it happened while merging into high speed traffic. so far the cars haven't been recalled. there are also complaints about leaks in jetta models. it comes between the fuel line and fuel injector. they are reviewing the complaints and say the problem may occur in 40,000 cars. opportunity is on the verge of a new round of exploration. that edge of a huge crater and should reach that point tomorrow. opportunity has 6 wheels, you

can see the animation here. it's traveling towards the enderve crater for three years. our next fuse cast is at 5:00. we are continuing to follow the markets and we will have the late and say reaction from the white house. next newscast, ktvu channel 2 news at 5:00, until then, have a great day.