fire in san francisco's district. it was two alarms. it is big trouble for some merchants. good afternoon. i'm tori campbell. we'll have more on the fire in a live report in a moment. first, wall street's wildest week since 2008 continues today with a big swing for the dow. this time stocks are up. stocks just broken free from

the recent trading range to set a new session high. looking at the big board. dow was up 430 pointed. that's over 4% back above 11,000. nasdaq is up 108. up 4.5%. s&p is up 51 at 4.6%. one of the reasons, word that the profits of technology bell weather cisco beat expectations. right now cisco stock is up over 2%. the other driving force behind today's rally is a drop in the unemployment claims. labor department reported this morning the number of people applying for unemployment benefits fell from the week before. it is also the first dip before the low-important 400,000 mark in four months. rates for fixed mortgages fell to record lows. fannie mae and freddie mac said the average rate for a 30 year

loan is 4.32% this week. that's higher than mid november. the 15-year rate, which is popular for refinancing, dropped to 3.5%. president obama is making a pitch in michigan right now for clean energy. he says investing in green technology will create jobs and reduce u.s. dependency on foreign oil. let's listen in. >> we have a lot of americans driving kias and hyunda s. i want folks in korea driving forces and chevies and chrysler's. i'd like to see that. i want to see billions of dollars more product sold around the world stamped with three words. "made in america." >> you are listening live to

president obama. he is visiting a plant that makes batteries for electric powered cars in michigan and received stimulus money to overcome the recession. in june michigan's unemployment rate was 10.5%. this is the president's first official trip outside washington, d.c. since the debt crisis began a month ago. he is headed to new york city after this stop to attend two fundraisers for his re-election campaign. president obama's handling of the economy is sure to be a major focus tonight in iowa. that's where eight republican candidates for president face off in a debate leading up to the state's straw poll this weekend. former massachusetts governor mitt romney has a slim lead in the most recent national polls. he'll be joined by michelle bachmann, tim pawlenty and herman cane. a two-alarm fire did quite a bit of damage in san

francisco this morning. it started in the 8th digit. new at noon paul chambers is live with video of the fire while it was burning. good afternoon. >> reporter: good afternoon. investigators pinpointed the fire to the back of the building in the officer area. they are wrapping up their investigation. there is a pile of clothing and things destroyed in the fire that firefighters brought out. apparently people were taken advantage of this and pulling clothes from this morning's fire. crews got a 9-1-1 call that a structure fire. these pictures are from a viewer who captured the two- alarm fire which caused major damage for two local businesses. >> he said the office is smoking. the fireman told him to get out. >> reporter: the source of fire sun known. it took 70 firefighters to battle the flames at the people's cafe and clothing store. investigators say the fire quickly spread between both

businesses. majority of the damage is in the rear building where office space and storage belongs to the clothing store. >> it shares the same attic space with the cafe next door. that's why there is damaging to both businesses in a common building. >> reporter: people live near the fire self evacuated. we spoke with the owner of the people's cafe. >> when i left everything was burning black and flooded. the floor was wet with water up to my ankles. the ceiling had big holes for the smoke to come out. >> reporter: no one was injured as a result. people are still trying to pull things out of there getting them for free at someone else's cost. firefighters told me they do not know the exact cause. they pinpointed it to the back of the building. they say it does not appear to be suspicious. live in san francisco i'm paul chambers ktvu channel 2 news. the california transportation commission has given a big financial boost to

a number of transit projects in the south bay including the bart extension. the commission voted yesterday to hand out $40 million for the extension from freemont. another $10 million to rebuild kato road along the extension. it earmarks $71 million to add car pool lanes on i-880 and $85 for merging lanes on 101. >> that would be awesome. traffic is horrible in the morning. all day traffic starts like at 3:30. >> it personally don't effect  my daily commute. i always look at it as work. it is good for our economy. especially locally. >> the first project to get underway is likely to be the rebuilding of kato road along the bart extension. now to the latest on this week's death of a toddler in a drive by shooting. the search for the killer continues. residents of the east oakland

neighborhood where the tragedy happened may see more police. >> reporter: i spoke to the oakland police department spokesperson a few hours ago. the police chief will make himself available today. if there is new information to give out in the investigation. the chief vowed to bring the person or persons responsible for the drive by shooting death of this 3-year-old little boy on monday afternoon. police say the toddler was caught in the cross fire of bullets meant to settle a score between two neighborhood gangs. two other men were shot during the driveby. today we spoke to the california highway patrol that has officers patrolling the area. they are not a new presence but one which may become a more permanent fixture if grant money is okayed by governor brown at the request of the mayor. a request made weeks before monday's deadly shooting. presence seen along 64th and foothill raised an eyebrow or

two. >> what some people may be doing is seeing them on the city streets and saying there was a shooting and the highway patrol is out and about. that's not the case. we have always been involved in law enforcement on the city streets. we'll continue do so. it is a service we provide. >> reporter: as far as oakland homicide investigation goes police confirmed one person of interest is in custody. they believe that person is connected to the shooting. how the department isn't saying. they are saying they have a key piece of evidence in case. again, what that is the department won't say. what we can say this afternoon, residents in this area will see u.s. marshals, almeida county sheriff's office and the gang unit until it is necessary to pull resources back. we are live at 54th and international where the spot where the 3-year-old little boy died. you can see the growing memorial. people stopping by at all times of the day. reporting live ktvu channel 2 news. >> thank you. hit-and-run driver accuse

odd seriously injuring a young phillies fan will be arraigned in an hour in san francisco. police say 21-year-old andrew vargas hit brian white one week ago. he drove off. police arrested him an hour later. preliminary results show vargas has a blood alcohol level of .08. his charged with hit-and-run and felony drunk driving. the family of ryan white is getting help from a san francisco restaurant to cover medical expenses. they held a fundraiser yesterday and is donating $6,000 to the family. white's condition has improved and family members say his now able to speak. bay area fans are cheering the kickoff of the profootball preseason. the oakland raiders shown here practice at their. >> ma training facility are hosting arizona cardinals tonight in the first preseason game. this coombs few weeks after the

settlement that ended the 4- month-old nfl lock out. traffic could be heavy around the oakland coliseum this evening. the game is not sold out. it will not be broadcast live. instead you can see tonight's game on our sister station kicu channel 36. it will be tape delayed starting at 9:00 p.m. today the san mateo county sheriff's department will start jet ski patrols. right now private jet skis are limited because the area is a national marine sanctuary. there is no ban on jet skies used by a public agency. surfers have been pushing for the safety patrols. earlier this year a big wave knocked a surfer unconcious. he was rescued by someone on a banned jet ski. environmentalist today express concern over the 2013 america's cup competition on san francisco bay. they gathered on the steps of city hall two hours ago before going into a public hearing at the planning commission.

they are worried about how the environment will be affected when most of the city's northern waterfront is transformed to handle the sailboat races. >> i love the bay. i love the america's cup. but i'm getting cold feet because the environmental pre- nup july that the city developmented does not go far enough to protect the bay area's air water and marine life. >> state law requires the city to prepare an environmental impact report on the nine-week festivities before it can be held there. this may look like a typical suburban home. ahead why the home essay experience made the owner a target of a lawsuit. the bay area weather is expected to get cooler. that's coming up.

power is back on for 2800 fg&e customer after an emergency outage overnight. 5:30 this morning crews finished repair at the

substation. pg&e says a damaged insulator needed to be replaced. outage start at 10:00 last night. it affected customers east of highway 101 and south of highway 37. a man and a woman are in custody following a wild car chase on the streets of oakland. it began around 11:30 last night on of 4th avenue and foothill boulevard. it ended half an hour later on 11th and wister street downtown. it is unclear how the chase started. it involved a chp, oakland police and oakland housing authority. police say at one point someone through a gun out of the speeding car. the chase created a dangerous situation on city streets. no one was hurt. official says they have been given enough money to beef up their police and fire departments. city says two grants will allow it to hire nine firefighters and paramedics as well as reohm fire station 25.

they'll also be able to hire seven more people for the police department including two more officers on the street and a please sergeant. they laid off dozens of public safety workers three years ago when it filed for bankruptcy. authorities called off the search for someone trying to break into fulsom prison. someone jumped over the prison fence this morning. an officer patrolling the nearby fulsom dam spotted him doing it with night vision equipment. it happened at 4:30 a.m. no one was found. the trespasser left behind a bicycle which has been taken away by police. it was abuse -- a busy morning where three mayoral candidates made their races official. >> two time san francisco supervisor put he is name on the official candidate's list along with venture capital list and tony hall who has 35 years

of public service experience in san francisco. they spoke to a ktvu photographer after they submitted all their paper work. >> i'm excited to bring my vision to the voters as a formal candidate. >> i'm running but i believe we need to serve the people in san francisco. >> i think our chances are very good. otherwise i would not be in this thing. i don't like to lose. >> they all went to the elections office today to avoid a last minute rush tomorrow. which is the deadline to sign up. a warning from bart for the hundreds of thousands of riders. protesters may try to disrupt the transit system as early as today. planned demonstration is tied to last month's fatal police shooting in san francisco's civic center station. it prompted protests in san francisco last month. bart says a repeat of the rowdy demonstrations could force it to temporarily shut down stations or make other changes on short notice. st. carlos may push ahead

in a lawsuit against a homeowner who responded to complaint about garbage and clutter in her yard. the city filed a lawsuit on august 2nd. city officials say she failed to remove garbage and weeds despite notices. there was also a junk car on the elk street property. it was cleaned up this morning. a neighbor said she'd like to see better upkeep of the home. >> i'd like to see it brought up to a good condition where repairs are fixed, where weeds are pulled out and shrubs are taken out that are overgrown. >> the homeowner said the city is wasting its money. there was no trash in her yard on the dates the lawsuit was filed. the city said with the years of complaint about the problem they may continue with the lawsuit anyway.

temperatures in the city along the coast and around oakland and burkeley are cool. a lot of upper 50s and low 60s. inland sunshine. sea breeze picked up. we are looking for a cooler pattern today. temperatures will be that way. my mic is falling down. hole -- hole -- homed on there. overcast sunny and breezy. cool to warm. more fog and drizzle. looks like a big cooling trend in the weekend. warm weather kicked in an tuesday. it has and knocked out and pushed east. strong system will move into the pacific northwest and northern california on the weekend and into early next week. temperatures will take a plunge. kind of like the stock market yesterday.

not today. in the middle of the country they are heating up. we have low clouds from oregon to southern california. you can see the fog. it is large and in charge. it is roaring back tonight and tomorrow. 70s on the temperatures. 60s and 50s. 59 san francisco. these temperatures are running two to four degrees cooler than yesterday. each day we are coming down two to four degrees. system is coming down. as it does it will carve over the west. that will spell a significant cooling trend are increase in drizzle as we head towards the weekend. today more fog. that wall street -- west wind picked up. 80s inland. weekend is looking like a cloudy one by the coast with local drizzle. today fog. some holding on. it will be cooler although you have the sunshine. temperatures far inland upper 80s or 90s. everyone else is in the 70s or 60s. even some 50s by the water's

edge. 60s oakland and burkeley. low 80s for the south bay and much of the coast and peninsula and in the city where temperatures are running below average. if you like that weather you'll love the next five to eight days. >> thank you very much. a battle is brewing between safeway and the people paid to gather signatures on petitions. safeway says signature gatherers bother customers, block store entrances and ignore the store's solicitor rules. signature gatherers say they do not comply with their freedom of speech rights. it is down to finishing touches in san francisco's golden gate park ahead of this weekend's outside land's music festival. crews spent yesterday setting up the stages and perfecting the sound system. three and day festival is

expected to sell out. which equates to 60, 000 attendees each day. ing or orb organizers say the city will reap the benefits. >> after this year's festival we will have given them $4 million in the first four years. >> some people who live around the park remain apprehensive about the noise and traffic it will bring. organizers are circulating flyers to let people know the schedule and which roads will be closed. ktvu.com has more details on the festival and the lineup. look for the local music tab on the front page. also, ahead, another look at stocks and not your typical sleep over. it is a giant sleep over. night of fun and games at at&t park coming up next. no, but there's a charming farmhouse. right next to my posh castle! i'm sensing a theme here. well, i am the queen, dear s get your annual ikea catalog today.

another wild ride on wall street says the dow is up over 500 points. investors saw small signs the economy might not be headed into another recession namely because of good new on the job market and good news from cisco. if the dow stays here it will be the first time the dow moved by more than 400 points in four straight days since 2008. when the markets tumbled during the financial crisis. dow up 505.

nasdaq up 121. volatility in the stock market is hurting retirement and pension funds. none bigger than california's public employees retirement fund. it lost $18 billion since the beginning of last month. state may have to curtail contributions if the economy continues to decline. last year 30,000 state employees retired. beginning in late october the statue of liberty will be offlimits to tourist for the whole year. lady liberty will undergo a $27 million renovation. liberty island will remain opened during the project. views of the statue will remain largely unobstructed. last night hundreds of san francisco giants facts spent the night on the team at at&t park for the team's annual slumber party. event was sold out. tickets went for $200 per

person. fans were given the chance to have their picture take within the world series trophy. tonight at 5:00, in an emergency you call 9-1-1. maybe not for long. how texting and sending photos and videos may be an emergency option for you. that story and more coming up in the next newscast. thank you for watching. have a great day!