after a morning rally, the jittery stock market just headed down again because of an announcement just made. good afternoon. thank you for joining us. i'm maureen naylor in for tori campbell. in the last hour, the federal reserve announced it will continue to keep interest rates lower. that prompted a quick selloff on wall street.

i want to hope you the latest numbers from -- to show you the latest numbers on wall street. at one point stocks were above the 11,000 mark. the dow is down 123 points. s&p 500 is down just slightly. allie rasmus is live in san francisco with what analysts are predicting is next. >> reporter: well, maureen not only did the federal reserve come out and say they will keep interest rates at record lows, but they will keep them there through the next year and a half, or so, putting it at mid- 2013. an analyst i spoke to said he never heard about anyone putting these rates at this low for so long. you can imagine there were tense moments on the floor of

the texas exchange. the announcement came over at 11:20. and then the dow dropped about 100 points. at last check it was down 150 points. the spokesman for the new york stock exchanges says that's the feds 'announcement that they are gonna keep interest rates so low for so long -- >> they have some underlying concerns that the economy is not growing as expected. i think it's sort of a confirmation of what we -- growth is not really expanding like we need it to expand. >> reporter: to give you an example of some things causing concern. the fact that the u.s. economy barely grew in the first half of this year, consumer spending has dropped for the first time in 20 months but the trading day is not over yet.

there's still about 50 minutes to go. tom vacar will have more on this story at 5:00. live in san francisco, allie rasmus, ktvu channel 2 news. >> thank you. the statement released by the federal reserve confirm with everybody already knew, the statement says they are -- the committee now can expects a somewhat slower pace of the economy, anticipating that the unemployment rate will decline only gradually. the federal reserve will keep its key interest rate near zero for the next two years, much longer than many expected. bill lockyer says the downgrade of the nation's credit rating should not have an impact on california. one he also says came still needs to boost its economy. the state already has the lowest credit rating of any state. last month, standard & poor's changed the rate -- changed the rating from negative to stable after the budget was passed on time.

you can go to ktvu.com any time for economic news. you can monitor the markets online. just look for the wall street tab. after the month-long party soon battle, two new national polls show most americans don't think representatives should be represented. and usa poll asked if president obama should be reelected. 51% said no. an urgent call for help is being issued in oakland after a toddler was killed yesterday in a drive-by shooting. jade hernandez is live in oakland with more on what the heartbroken family of the 3- year-old is saying today. jade? >> reporter: maureen, the memorial is growing. you can see candles are

burning. oakland police have not made any arrest the in the case. but a -- arrests in the case. a deputy chief said they are close. for the family of the 3-year- old carlos, that's not enough. >> the violence is not stopping. our straights cannot dash our streets are not safe. if you can't walk in broad daylight and go to a store, you -- you are not safe. >> reporter: the man you heard from is the little cousin's family. they are devastated. this moving, we saw a lifelong oakland resident drop off a teddy bear where the 3-year-old was shot. the flowers, balloons and candles kept coming. >> this area is pop lated with all kind -- populated with all kinds of kids. and the person who shot him, probably a kid. >> allky say he's in heaven -- all i can say he's in heaven.

i hate that he had to go like this. >> reporter: today, police and the alameda county sheriff's office continue to focus on patrols in the area. we were told by police the intended target shot were not seriously hurt. one woman says her brother is in critical condition, shot three times. >> i would like just -- i would just like the police to find out what is doing all of this shooting, especially with the baby being shot. >> i'm confident the crime is gonna be involved -- gonna be solved crickly -- quickly. >> reporter: the male made these fliers today -- the family made these fliers today. they are holding a rosary at 8:00 tonight. it's an hour after the vigil.

it will be right here planned by mayor quan. jade hernandez -- back to you. >> thank you. traffic is just clearing up on westbound 580 after emergency potholes repair. we have video from newschopper2. crews had the westbound side shut down temporary to -- temporarily to fix the traffic. president obama is attending a cemetery in delaware to honor the u.s. troops killed in afghanistan. the president arrived at dover air force base a few hours ago. the pentagon is not allowing media coverage of the actual ceremony because some of the remains are still being identified. a total of 30 americans and eight afghans were shot down over a valley in eastern

afghanistan, about 60 miles southwest of kabul. the chopper was brought down by ain insurgent using a rocket- propelled green need. a house fire hatched on martha drive. and tara moriarty talk to firefighters who say the tragedy could have been prevented. >> reporter: firefighters got the call at 4:45 this moving. when crews arrived, they were told a man was snapped inside. she says she's known tom for 16 years. he did not plake it out of the house alive. >> my heart fell to the floor. >> reporter: neighbors say they woke up to the sound of sirens and when they look the up -- and when they looked up, you can see the tree.

the firefirefighters are looking to see if candles could have caused this fire. >> this home was not installed with smoke detectors. >> reporter: they believe that could have saved his life? the fire had some time to -- had some time to -- the firefighters had some time. >> reporter: in mars, tara mori tear, ktvu channel 2 news -- in martinez, tara moriarty, ktvu channel 2 news. a former pg&e manager says he was fired for reporting misconduct. it's the latest investigation since the pipeline disaster. in a 2008 lawsuit, a manager claimed pg&e ignored warnings to have customers pick up a $2

million accounting mistake. and pg&e has hired an outsided you -- an outsiter to take over -- outsider to take over. anthony comes from a michigan company and has a reputation for crisis management skills. he tangs takes over as pg&e faces lawsuits with regard to the explosion and is set to start the post on september 13th. ahead -- chaos on a plane all blahs of this fly -- all because of this so away. because of this stow away.

conductors can now use clipper cards. readers previously could not communicate with it and the riders had to pay cash. b.a.r.t. is normal after a shutdown last night. the problems started around 7:30 last night when computers at the operation control center

shut down. those computers monitor train speed and location. service was stopped as a precaution. passengers were stranded on -- on. >> this happened in 2006, march of 2006. that was right at the heart of the commute. this was an hour and a half after the commute, fortunately. but if you are on the system, you're not happy. >> b.a.r.t. resumed service around 10:00 last night. you can help b.a.r.t. with public feedback. concept s similar to the current reconfiguration but with seats that can be easily cleaned, next, the featured wave top seat styles, s-shaped piles and porters -- portals for people to watch the track

and tunnels wiz by. muni is getting high-tech camera. the money they are getting will pay for new surveillance videos for more than 350 muni buses. the new cameras will announce -- will allow them to watch in realtime. the current system only tapes what happens on buses. the community is rallying to support a richmond family whose toddler drowned in their swimming pool. 15-month-old was discovered in the afternoon. her mother was inside the home when she realized she had not seen the girl for ten minutes. her father works at the sizler restaurant in -- sizzler in point noel and his coworkers

and others are helping with -- pinole and his coworkers and others are helping with the funeral. and in just of the last few hours, a texas jury handed polygamist leader a life sentence. the 55-year-old headed the fundamentalist church. the light sentence is for the sexual assault of a 12-year-old he took at a bride. he also received a sentence for assaulting a 16-year-old who prim pregnant. he could be eligible for parole

when he is 90 years old. david cameron came back from vacation early to survey damage following heavy rioting. authorities may also use plastic bullets against riders tonight which have never been used during british services -- services. ed. ed lee is out campaigning for a second day for a four- year term. he was out shaking hands and meeting san franciscans in the mission district. lee will face off with more than ten candidates. some of the opponents are upset because he said when he took the polls in january he said he

would not run. this morning on "mornings on 2" he talked about what changed hit mine independent -- changessed his mind. >> we've been -- changed behind -- what change. his mind. >> what what changed my mind is we're doing really good. >> lee received a rough reception last night at a community forum in the castro strict. and some heckled him for changing his mind and running for office. the fog burned off early today. now we have hazy sunshine. the fog is still hanging out around the coast. but inland areas are bunking 2 to 6 degrees warmer. temperatures will run up. all they are doing is getting to near average. today looks sunny. tomorrow about the same. fog will probably be very thick tonight and tomorrow.

i think we top out tomorrow. the weekend is looking cooler. a rather strong system continues to develop in the pacific northwest. that will usher in more fog and the fog and low clouds, a little shallower today, so that's why it did burn off sooner. it didn't last too long, about 9:00, 9:30. 10:00 there's still still some there. 80 already in livermore. temperatures there are much warmer, also near concord, livermore, san jose. a lot more 70s today. even 65 in the city. if it feels warmer to you, it is. one system moved out. another one will start to move in. but that probably won't be for another 24 to 36 hours. all signs point to a cooldown on the coast. keeping things cool there. patchy fog, cool, a lot of sun around the bay. sunny and warmer inland. temperatures, 80s to a few low 90s.

sinny for most. it their be warmer. not a lot. but some 80s and 90s. 9 oh, 8 -- 88, calistoga. travis 88 there. that's about 4 warmer than yesterday. antioch to brentwood, 85. livermore, 86. 87 morgue be hill, cupertino, 79 -- morgan hill, cupertino, 79. no big changes wednesday. it does look like temperatures will peek out and we'll keep that and then a cooling trend will take us in the weekend. >> thank you, steve. >> any time. well, we want to take you live back out to the big board to show you the latest on stocks. it's been a wild last hour, you could say. now stocks are up 126 points -- hovering right under the 11,000

mark. currently, it's 132 points up right now. petaluma police are reminding everybody to lock your cars and trunks and remove valuables in plain site. there have been 38 vehicle thefts this year including four this month. police say the latest was sunday morning on early when a jaguar and audi were stolen. most of the crimes occurred late in the morning or at night. police are investigating residents to call 911 in they see any suspicious activity. mall surveillance shows -- those dogs' owners out of their car. they cracked a window and left a bowl of water. the firefighters were called in. the temperatures inside the suv had reached 135 degrees. >> that's not a guarantee that

your animal is safe even if you put water in the car. it takes over -- about 20 minutes to get to 135 degrees. >> the owners don't face any charges and the dog is doing okay. [ laughter ] >> still not exactly clear what this was but many thought it was a bat. the animal flew into the laboratory and a quick-thinking passenger slammed the door when the plane landed, airport staff tried to contain the animal but it flew out the door. still ahead, more on the ups and -- ups and downs on the stock market. we'll take you back out to wall street and a milestone for bay area-based apple. ;

welcome back. taking you live to the big board. currently up 124 points. it had been up for most of the warning, took a dip after the federal reserve made its announcement about keeping interest rates low. it's since ramlied, 126 points. as for the nasdaq, it's 45. apple lurched past exxonmobil as the world's

largest publicly traded company. during the earlier rally, apple gained ground. exxon dropped. but they rose past apple again once the rally subsided. the two are next and neck right now. stanford researchers have now, more accurate guidelines on a heart test for young athletes. there's been controversy on whether an electrocardiogram is accurate enough to detect heart problems that could save the life of teenagers. stanford researchers say the new guidelines will eliminate the number of false positives.

and that's donna -- gonna do it for us on the noon news. we'll continue to follow the market and have much more coming up at 5:00. until then, have a great day. charming farmhouse.

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