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>> (male announcer): live from the bay area this is the kron 4 morning news. thanks for joining us on this monday morning. i'm james fletcher. and i'm anny hong. we are looking for some more sunshine and warmer temperatures coming this way erica is tracking our weather. good morning erica. >> we have pleasant conditions coming our way. not bad for downtown san francisco. oakland, it is our inland areas where we have local dense fog. the national weather service has issued a dense fog advisory for the cortines straight and the delta. drive with caution in those areas. >> we have clouds. temperatures in the '40's and '30's. as we head into the afternoon sunny conditions are warmer conditions. partly cloudy skies as we head into the evening hours. visibility is down to 3 tenths of a mile for napa. 5 mi. for concord. we do have local dense fog currently cloudy conditions for the rest of the bay area. cloud cover will decrease as we head into the afternoon. >> temperatures by 8:00 a.m. the purple on your screen indicates most places in the '40's. it is cold out there. it is not as cold as a couple of days last week. as we put the clock into motion. by 12:00 p.m. start to see some bring something we have not seen in quite some time. some spots climbing into the '60s. 8:00 p.m. the light blue indicates most spots in the '50s. your afternoon highs 64 napa. 50 for vallejo. san mateo at 58 degrees. >> shows warmer conditions for the next couple of days. will have more coming up in a bit. >> at the traffic desk no hot spots. no slowdowns. the approach to the bay bridge toll plaza is doing fine out of oakland into the city. >> san mateo bridge no problems to report. the drive 12 minutes from end to end. >> south bound 10 on the golden gate a lot of space between cars no delays coming out of the north bay. >> thank you erica. >> our top story this morninga woman has died after her car went off an onramp and into a pond in san jose. witnesses say the vehicle failed to make a turn on the ramp on almaden expressway and instead drove straight up a curb, through a fence and into the pond around 2:40 yesterday afternoon. authorities say the car then became submerged in the pond. bystanders and emergency responders tried to reach the driver, who was trapped inside the car. >> we had a dive team come out and underwater diving. they were able to get the victim out of the vehicle. she was found by the highway patrol. she was seat belts and to the vehicle. >>authorities say the driver, whose identity has not yet been released, was removed from the vehicle by divers around 3:15 p.m. and taken to the hospital where she was pronounced dead. investigators are still trying to determine what caused the accident. >>all lanes of northbound interstate 880 in oakland are back open this hour. after the c-h-p shut down the freeway to investigate a deadly crash. it happened at about 7-45 last night near the high street off-ramp. the c-h-p says a honda civic crashed into the center divder. afterward. the driver tried to walk across the freeway. and was hit by at least two cars. the 44-year-old man died at the scene. the northbound lanes were closed for nearly two hours while the c-h-p investigated. . >> oakland police say they have found a 63-year-old woman who has been missing since friday. police say gloria gee left her home for work at about 6-30 that morning. and never arrived. she was reported missing by her husband. who believed she is a victim of foul play. oakland. oakland police confirmed gee has been located. safe. and >> in good health. >>authorities say witnesses found the body around 8-30 san jose police are investigating the first homicide of the year. after in the driveway of her home. korea. elaborate. in good health. santa cruz county authorities are trying to found floating in the san lorenzo river. >> he also had you need unusual hair cut with a fish cars on one side of his hair in a lightning bolt on the other. dexter oliver is the only suspect. >> santa cruz county authorities are trying to identify the body of a man found floating in a san lorenzo river. found the body around 8-30 in the morning on saturday. there were no signs of foul play and the cause of death has not been determined. body was in the river. >> san jose police are investigating the first homicide of the year. after a woman found a man's body in the driveway of her home. tripoli avenue in san jose'sthe victim. who police say appeared to have been shot. is said to be a latino man in his 30s. police have not released his the neighborhood. the right now we do not currently have a motive. what we do know is that the victim was suffering from at least one gunshot wound. that was confirmed by the medical examiner. we are interviewing witnesses. we have canvassed the neighborhood to determine what happened. we wanted to know if someone seen or heard anything. >> so far no arrests have been made this killing comes in the wake of a deadly wake of homicides. >> tickets for this weekend's divisional round playoff game between the 49ers and the green bay packers will go on sale this morning. the 49ers and packers are set to play at candlestick park on saturday at 5 p-m. tickets for the game will be available today starting at 10 a.m., according to the through ticketmaster. . >> the time is. a live look outside on your monday morning. this from our roof camera on van ness ave. erica mentioned the dense fog. keep that in mind as you are heading up the door. we will be right back. >> iphone is taking market share back from android. >> apple smart phones now account for 52 percent of the u.s.. for the last quarter. >> is the first time apple share has topped 50%. >> during the same period, android share of the market fell 42%. while microsoft windows phones held 3% share. >> among i found buyers in november, 27% upgrade from another smart phone 0 s, 34 percent upgraded from a previous iphone to their first smart phone. >> get ready for some apple with your wind. >> the newest apple store to be coming to napa. >> the tech grant is advertising in retail jobs for napa location. >> nowhere yet on what the actual location of the new apple stores might be. >>google chairman eric schmidt is in beijing in headed to north korea. the country considered to have the world's most restrictive internet policies. >> he is part of a delegation led by former new mexico gov. bill richardson. >> now he says that schmidt is going as a private citizen and is interested in north korea's economic issues and its use of social media. >> ridges and says the delegation also plans to acquire about a korean- american u.s. citizen detained there. the hope is to lay the groundwork for the detainee to return home. >> the hbo is renewing a deal with universal pictures to be the exclusive pay-tv provider for the studio's movies for another decade. >> the deal includes movies produced by universal and special film unit, focus features. hbo in universal pictures had an agreement in place since 2003. >> we will be back in a moment with more news in headlines. >> we're back is 4:14. we are waking up to cold temperatures and a lot of fog. let us cut the latest on the forecast erica. >> good morning james. from our mount tam cam you could see it shaking around it is windy in the higher elevations. we have cold temperatures and dense fog to contend with. currently 34 we are above freezing in santa rosa. 45 for downtown san francisco. upper '30's and oakland. fog tracker 4 shows into the 5:00 hour we will see cloudy conditions and dense fog everywhere. the really dense fog where visibility is limited is in the inland spots. the parking this straight. the delta and parts of the north bay as well. -test the car keenness straight. >> we are looking for sunshine to the afternoon and temperatures a bit warmer.here's a look at your numbers. 58 in redwood city. 57 expected and fremont. dry weather continues we will see sunny skies for fairfield 57. 58 for castro valley. 59 in union city. >> on to the north bay low sixties for santa rosa napa. 59 for richmond. 56 and daily city. >> satellite and radar shows rain in oregon and washington. it will stay there. we would not see any rain in the bay area until wednesday. into the evening hours we do pick up the potential for rain. that will continue into thursday widespread showers. the wind's will start to pick up as well. expect friday to be cool and breezy. a 20 percent chance of rain into saturday and sunday. we do have some sunshine and the forecast with temperatures in the upper 50s. >> over in the traffic department still quiet. a good time to leave home. the approach to the bay bridge toll plaza looks just fine out of oakland into san francisco. >> at the san mateo bridge no problems getting to the bridge heading in the west bound direction. >> south bound 101 top speed of of the north bay. >> westbound 24 for the call the cops tunnel towards the macarthur maize you will see green on your roadway censors for the nimitz freeway. >> 5 bay area middle schools are making the grade. as they made state superintendent of public instruction, torklakson list of california's middle preschools to watch in 2013 scotts valley middle school were each named for the first time this year, state provided "developmental. >> meanwhile palo alto police say an alert never helped lead them to a man suspected of stealing packages off front porches in the south bay. >> a 25 year-old andrew philip stafford was taken into custody on new year's day after the neighbor reported seeing him still to packages from a house on marshall drive. >> police said they also found a gun. baton and the drugs in staffords truck when they arrested him. >> detectives also searched stafford storage locker in campbell and said they found packages that may have been stolen from homes in san jose. >> authorities are investigating a shooting that injured a 16 year-old girl near responsiveness to the needs high school in millbrae. >> the san mateo county sheriff's office says the shooting happened late saturday across the street from high school. police also said they currently do not have a suspect description. >> police are searching for a suspect after a taxi driver was stabbed outside of the macarthur bart station. >> police say that around 645 saturday night in man got into a taxicab outside the bart station on 40th street. the suspect in driver then got into an argument which ended when the suspect that the driver. >> the man then fled the scene on foot and a cab driver was taken to hospital. >> the victim is is that a condition of pleaser still searching for the missing suspect. >> good news for hockey fans. >> the end h. l. lockout is said end after more than 1100 days--. >> the lead employers associated reached a tentative deal and the pulp consumed dropped on a shortened season. >> no one is more happy about the nhl lockout in in the san jose sharks fans. >> the revenue lost is like 6570% of our normal take. it is a go down general investigators are still. the point schedule ploy is. perry say an alert neighbor helped will be at exciting then. macarthur bart station. conceal how the supply is is lunchtime looks different on the sharks are. as place it is packed. town in downtown in general last year we would have the >> exciting to have it full. >> again. we were getting to the point where we were going to have hire 10-15 more. even when it's not a home gamepeople flock in here to just a few blocks from the hp pavillion.where the sharks home games are you can see how it's nearly empty during lunchtime sunday.which is a lotthis place gets packedwe regular season. brent ferrelwore this getup to work herehe's happy as a about that. tickets for the annual soon go on sale. for 380 dollars each. tickets opened at 240 dollars last year, with prices steadily rising as the event approached. now are offering tickets on in the nevada desert. . >> will get an update on weather and traffic in just ñólittle bit welcome back. the timeless 4:23. >> surrounding the mass shooting could finally go public as a preliminary hearing gets underway. prosecutors are expected to call scores of witnesses, this week, as they outline their evidence in the case. holmes's attorneys are expected to argue he has "diminished capacity." in other words, that he'sthe hearing is expected to take all week. >> secretary of state hillary clinton is returning to work today for the first time since she was sidelined by health problems. clinton was released from the hospital on wednesday following three days of treatment. her troubles first started back in december when she fainted from dehydration brought on by the stomach flu. the hospital discovered the blood clot while testing her for a concussion. clinton is scheduled to meet with assistant secretaries of state this morning. >> to announce today that former senator chuck hagel is his choice to become the next defense secretary. hagel has an impressive resume but he also has some critics on capitol hill. andrew spencer has the story. >> chuck a san jose family is lucknot one should directly negotiate with kron that israel must negotiate withhamas a terrorist group. he was also one of 12 senators to refuse to sign a letter with the european union to designate has a lot as a terrorist organization. >> the question we will be entering is do his views make sense for that particular job. i think he should be giving a fair hearing like any other nominee. >> some lawmakers to not think he is right for the job. --do think his life of up--his views on national security could cause problems during the confirmation hearing. he opposed the trtroop surges in a rock and iran as called for the sense cut spending. >> but us give you a quick look outside at the golden gate bridge. traffic on the 101 on the light side. you may notice fog. erica will be up in a couple of minutes with a full look at your weather and traffic. we will be right back. >> the morning. walk bacelcome back. >> erica has a look at our forecast. the fog you instant is inland. >> as we take a look at your day planner sunny conditions decrease in cloud cover as we head into the afternoon. some spots climb into the low 60s. into tomorrow temperatures above the seasonal average. this warm spell is relatively short- lived as we head into the middle of this week we increase our potential for rain lasting into thursday. full details coming up shortly. beatin in the >> visibility down to 5 mi. in napa. temperatures will go throughout the day by 8:00 a.m. the purple on your screen indicates '40's. temperatures are cool but not as cold as they were last week. as we head into the afternoon we have the potential to see some 60s. it could be relatively more for this time of year in the north bay. as we head into the 8:00 p.m. hour the light blue on your screen indicates temperatures in the '50s. your afternoon highs 64 napa. 59 for richmond and san mateo. >> your kron 4 7 day around the bay forecast shows wet weather is on the way as we head into wednesday and thursday. that is a look at your extended forecast. >> let us do a quick bridge check note issues to report. at the approach to the bay bridge toll plaza more cars on the road now it is still a pretty good ride for those of you coming from any of the approaches. >> at the san mateo bridge traffic is doing well in both directions of highway 92 and south bound 101 the golden gate bridge the drive time 22 minutes out of novato into san francisco. >> the time is 4:31. >> a san jose family is lucky to be alive this morning after their ross caught fire. >> the fire happen of the 2500 block of loomis drive around 630 last night. >> authorities said mel ott it then was inside the home at the time but was able to escape without injury. >> official said the fire spread throughout the house causing major damage. the fire was brought under control shortly before 8. three residents were displaced by the fire the cause remains under investigation. >> a woman has died after her car went off and o nramp on almaden expressway and instead drove up a curve, present and into the pond a route to 40 yesterday afternoon. >> authorities said the car then became submerged in the pond. >> bystanders an emergency responders try to reach the driver, was trapped inside the car. >> the highway patrol told me she was in the vehicle seatbelts in the vehicle. >> authorities said the driver whose identity has not been released, was removed from the car by divers around 3:15 p.m. and taken to the hospital where she was pronounced dead. >> investigators are still trying to determine what caused the accident. >> a man is on the run this morning after police they initially set a one on fire in the bayview district of san francisco. >> police say 22 year-old dexter oliver and the victim were dating. the victim is being treated in the burn center at st. francis hospital. >> witnesses say the san francisco police that they heard a woman screaming. >> of hollister avenue between third and jennings yesterday afternoon police the of our approach turk, for flammable liquid over her and, then set her body on fire. >> it is possible that afterwards, all for walked down the street light rail trai >> investigators not releasing what led to the confrontation. many in the neighborhood shop this happen. >> the words i have in my heart being a pastor i will not say them. i am so glad that we can see eight different. gun violence is one thing, setting someone on fire is another form of mayhem. >> police say that dexter oliver is 510, weighs one under 65 lbs., was seen wearing a red and white hooded shirt with gray and white oike gym shoes. he has a unique care cut a lightning bolt on one side and a fish on the other. >> police say is an facing attempted murder charges and arson. >> this morning, state assemblywoman nancy skinner is scheduled to reintroduce legislation and get tougher gun control in california. >> is expected to propose a law that will regulate and tighten ammunition sales in the states and ban high- capacity magazines. >> oakland mayor jean quan is expected to attend today's news conference announcing the legislation. >> scanners new bill require background checks, and will acquire ammunition purchases to show their id. >> the bill also proposed that all ammunition sales reported to the department of justice. >> with a new congress comes a new push for national gun laws. >> on day one, lawmakers and the house introduced the nearly dozen bills related to gun violence. they come in the wake of the connecticut school shooting in promise from president obama to take concrete action to prevent a repeat tragedy. >> but big political obstacles remain. athena jones at the details from washington. >> members of congress in both chambers are taking aim at guns. >> this is a fight that the american people will have to stand up for. >> california democratic senator dianne feinstein plans to introduce a bill to ban more than 100 assault weapons. >> another senate bill will then high-capacity magazines. among a dozen gun bills introduced on day one in the house background checks for all firearm sales should be recorded. >> to build some republican congressmen would allow more guns around schools. >> the only thing that stops a bad guy with the gun is a good guy with a gun. >> there are better than 32 gun murders every day. gun- control groups keep pressing for action. >> if you are talking about maybe banning high capacity ammunition magazines that might be possible. >> the nra is the big issue but i would not nestle s.a. is on the republican side onl is on thnot say it is on the republican side only. some democrats are on board. >> there is no more uphill fight than this. >> will follow the latest from capitol hill. will take a quick break and be back on the kron 4 morning news. >> a live look out of walnut creek as we go. the ride on 680 moving well. foggy out there and cold as well. erica will have a look at your forecast in a bit. wall combelcome back.. >> five men accused of raping and killing a young student in the indian cavil have arrived at court for pretrial proceedings. >> police have charged the man with murder, rape and other crimes that could bring them to death. >> the crime costs nationwide outrage, leading to massive protest. >> a sixth suspect was 17 years old was suspected to be tried in juvenile court, where the maximum sentence would have been three years and reform facility. >> syrrian syrrianbashar al assa addressed his war-torn nation in a rape speech. >> he stood firm against global calls from him to step down and proposed a peace process that would leave him in power. >> the obama administration quickly rejected it. >> more than 60,000 people have reportedly been killed during a bloody civil war that raged on for nearly two years. >> australia and started searching for dozens of people may be missing in wildfire out fires in south east tasmania. >> the wildfire is already destroyed more than a hundred homes in search of persisting through the remains of bodies. >> under the residents of also been evacuated from tasamania peninsula before the fires--because the fire is a block road and out of the rule communities. >> firefighters are having a tough time getting the flames under control because of the rough terrain. >> a chinese state news agency says the country is begun building a nuclear plant after lifting a construction moratorium imposed falling moratorium fukushima disaster. >> the form under $57 million power plant in eastern coastal city will incorporate advanced safety features developed by chinese researchers. >> beijing's bid approval for nucleaew nuclear power plans to carry out safety reviews following the japan's to about 11 earthquake in tsunami that wrecked the fu kushima plant. >> the moratorium was lifted in october. >> we will be back with >> ( male announcer): now here's stanley roberts who found some people behaving badly on the corner of kirkwood and dormitory on san francisco since this lonely tree or should i say what is left of it. >> i believe it is what is left of the christmas tree because of the lights that were left attached and the tree stand. >> a few blocks away, yet more burned up remnants of what was once possibly christmas tree it even scorched this hydrant. >> in fact from the beach to the bay burned of christmas trees littered the san francisco landscape. >> over the ocean beach despite this christmas tree burning is prohibited sign will find burned trees on the beach. >> people call it a tradition to burn moultrie's of the beach the national parks service called vitiligo. >> over at 19th and folsom said san francisco fire station 7 well at 230 in the morning there was a knock on the door. >> the reason, someone said about a dozen trees on fire this is all that is left. >> their christmas trees all around the city waiting for the same fate of people setting them ablaze. >> and it is all fun and games to someone's personal property gets destroyed because of firebugs and a dry christmas tree. >> more trees pile up some employes were just the day before only one tree was there you hear stories. >> my suggestion be part of the solution not the problem dispose of huge trees probably because we all know some people just don't have common sense. >> in san francisco stanley roberts kron 4 news. >> bankamerica announced it has agreed to bay fannie mae and by bad loans to sell mortgage claims as part of a larger effort by the federal government to get 14 of the major banks in the u.s. to make good on abuses the they were charged with making the in the financial meltdown. >> we have j.p. morgan chase and citicorgroup. >> the time is 4:46. erica is tracking our weather. >>a good >nny anny. we are taking a live downtown this is downtown san jose. the fog is back again in some parts. 46 in antioch. your visibility chart shows the dense fog in livermore, concord and 10 mi. for fairfield. in the north bay napa is down to 3 tenths of a mile. drive with extra caution. be mindful of the cars in front of you. over to fog trucker 4 we will see 5:00 a.m. widespread. it is impacting everyone. as we head into the afternoon by lunchtime partly cloudy conditions around the heart of the bay. a lot of sunshine never was. >> an afternoon highs upper 50s. some spots between five and 10 degrees warmer than yesterday's. fremont at 57. 59 for san jose and milpitas. a lot of sunshine and dry weather in to the afternoon for the east bay. concord 58 degrees. 57 in pittsburgh. sunshine in the north bay. 60s for napa, santa rosa. 57 for downtown san francisco. >> your kron 4 7 day around the bay forecast shows warmer weather will continue tomorrow as well. temperatures will be eight of the seasonal average-- above the seasonal average. >> we will see showers into thursday. the wins will start to pick up. --the winds. >> it is quiet in the traffic center. we have a dance fog advisory for the dumbarton bridge. drive with extra caution. --a dense fog advisory. >> we are seeing a few extra cars on the span no metering lights to deal with. the drive under 10 minutes from the foot of the maize into a fremont street. >> >> no problems at the san mateo bridge. >> south bound 101 the golden gate looking good at lot of space between cars. as we turn to our traffic maps looking good at the 5 80/680 interchange no delays to speak of the north bound 101 coming out kiley valley. >> thank you erica. the fda is dishing out new rules in an effort to eliminate food borne illnesses like salmonella, hysteria and e coli--lisdteria one of the proposed rules require sign space standards for growing, harvesting, and packing holding produce on domestic and four farms. >> the second rule requires companies that plans for food borne illnesses. >> each year, one out of every six americans it 6 from food borne illnesses and about 3000 died. >> if the proposed rules get the ok, companies will have up to four years to comply. >> a new poll suggests that not all americans are aware of the risk associated with obesity. >> the poll finds that one- quarter of people think it is possible for someone to be overweight and healthy. >> researchers say americans are aware of obesity risk such as heart disease and diabetes. >> however, they found not everyone is aware of obese is linked to cancer, arthritis, sleep apnea and infertility. >> new research finds that women what at least three hours every week are less likely to suffer a stroke in women who do not. >> previous studies have also linked physical activity to fewer strokes. >> however, the new study found that women walked briskly for 210 minutes or more per week had a lower stroke kristin in active women. >> is also found that the risk was low for walkers and those who cycled and did other higher intensity workout for a shorter amount of time. >> the nfl wild-card weekend draws to an exciting finish with a matchup of to surprise playoff teams led by rookie quarterbacks. >> the seattle seahawks and quarterback russell wilson flexed their muscles on their way to a 24 to 14 victory over robert griffin the third and the washington redskins. >> former cal bear, marshawn lynch, ran for 132 yds and scored a seattle broken a game post-season losing streak on the road. >> they will go on to face the top seed atlanta falcons' next sunday. >> tickets for the weakens divisional round playoff game between the surfaces of 49ers and the green bay packers will go on sell this morning. >> as ever to go 49ers in the green bay packers are set to play at candlestick park on saturday at 5:00 p.m. tickets for the game will be available starting at 10:00 a.m. the can be produced on line via ticketmaster. >> the national archives displaying releasing documents and i am showing milestones in manned space flight from president nixon's administration. nasa sent the first men to the moon on apollo 11 mission during nixon's presidency and fall with five more lunar missions. >> the archive will look back at nixon's support for the space program. the new exhibit will open today it will include the telephone nixon used to talk to the apollo 11 astronauts after their mome landing. the speech drafted in case of a disaster, and items used to collect moon rocks. >> we will be back with more headlines weather and news. >> we are backed. it is 4:54. >> it is mild today. things get chile today. inland lows showed 33, 29. --things get chilly today. mild temperatures averaging in the low fifties to mid 60's. >> after three weeks as king, the hobbit has to settle for third place in the box office. elisabeth corridan has today's hollywood minute. >> after a photographer was killed trying to snap photos of justin's binbers car. eibers car. >> this is a tragedy but hopefully we can learn from the experience. >>bieber was not in the car and issued a statement offering his condolences and calling for changes to protect celebrities and photographers who go to great lengths to get high- profile pictures. >> texas chainsaw 3-d debuted at number one. ticket sales hit $23 million. django on change finished in the same spot. the movie brought in another $20 million netting over one under six minutes in dollars. >> hobbit sit to #three taking in 17 and one-half million dollars. >> for kron hollywood minute i am elisabethcorridan. >> still ahead on the kron 4 morning news a scary scene in san jose as a one and lancer cars in a pond more details about the accident coming up. >> and secretary of state healing clinton gets back to work to day this days after being treated and released from the hospital. >> and we are watching your bay area weather and traffic. we will be checking in with erica and jordan just a few minutes. stay with us here on the kron 4 morning >> (male announcer): live from the bay area this is the kron 4 morning news. kron 4 news at 5:00 a.m. starts now. >> on the heels of the massacre in new town conn a bay area assemblywoman is going after gun sales. >> a man is on the run in san francisco after setting a woman on fire the tell straight ahead. >> the san francisco 49ers are preparing for their playoff appearance while fans are getting ready to buy tickets. we will have the latest on the matchup against green bay packers and when tickets on sale. >> off before we get to that let us get updated with weather and traffic. erica has a look at our forecast. >> cold and fog is definitely the case. we see limited visibility for some of our inland spots. temperatures in the '30's and '40's. as we take a look at the afternoon expect sunny and warmer conditions upper 50s low 60s. partly cloudy skies as we head into the evening hours. we have 3 tenths of a mile for livermore down to just a half mile in napa. visibility good coming down the east bay shoreline we see 9 mi. right around the as f o area. it is a cold start to the morning. --sfo. we will look at the numbers in my next report. >> good morning george. >> good morning erica. not checking any hot spots or delays. light traffic for highway 4 and interstate 580. south bay peninsula north bay all look good. it is likely that we will see a return this morning to normal traffic flows and congestion. >> thank you george knew this morning assemblywoman nancy skinner will announce legislation this morning to regulating ammunition sales and ban high-capacity magazines in california. >> kron fours will tran joins us live from oakland with more. >> what we expect to n announce a date? >> she will announce at 9:38 a.m.. it is harder to buy certain types of cold medicines and ammunition. she wants to level the playing field. take a look at the screen at some bullet points she wants to present in her assembly bill 48. one south ideas she wants to make sure that all buyers present their formal identification before making the purchase. once they make the purchase they have to report it. the sellers have to report to the part of justice and she points that out because of what happened in aurora, colorado. the shooter apparently stockpiled as much as 6000 rounds without any red flags to the authorities. she must make sure the department of justice at least tracks sales. >> also she wants to make sure that the sellers will have background checks of they are clean as far as doing their job. >> this is based on the new town, connecticut and aura. she wants the state of california to ban the sale of conversion clips that turns into fire--high- powered firearms. >> we know how the oakland police department is fighting crime so much so that even the mayor of oakland will be there. when assemblywoman skinner will talk about proposition 48. >> legislators on capitol hill are working to push national gun-control laws will see what happens there. >> a man is on the run after police say he intentionally set a one on fire in the bayview district of san francisco. >> 23 year-old dexter oliver and the victim were dating. witnesses tell the san francisco police they heard a woman screaming on hollister avenue between third and jennings yesterday afternoon. police say oliver approached her and threw flammable liquid over her and then set her body on fire. it is possible that oliver may have just walked down the street and got on a light rail train. >> investigators are not releasing what led to the confrontation but many in the neighborhood are shocked by what happened. >> is just awful. the words that i have in my heart being a pastor i will not save them. but i am so glad that we can see a difference gun violence is one thaing, setting someone on fire is another mayhem. >> police say the exit of for is about 510 lame hundred 55 lbs.. he was last seen wearing a red and white hooded shirt dark pajama pants, with multicolored shamrock print with a gray and red nike tennis shoes. >> he also has a unique care cut with the fish are out on one side of his hair in a lightning bolt on the other. police say dexter oliver is the only suspect. >> a woman has died after the car went off and on ramp and into a pond in san jose. >> witnesses said the vehicle fell to make a turn on the rap on allman expressways and instead drove straight up a curve, 3 fins and into a pond around 240 yesterday afternoon. >> authorities to the car then became submerged in the pond. bystanders and emergency responders try to reach the driver, who was trapped inside the car. >> authorities said the driver, whose identity has not been released, was removed from the vehicle by divers around 3:15 p.m. and taken to the hospital where she was pronounced dead. >> san of a police are investigating the first homicide of the year after a one found a man's body in the driveway of her home. >> the home is on the 1900 block of tripoli avenue in san jose's little saigon district. the victim was police say appear to have been shot is a latino man in his '30's. >> police have benot released his name or how he ended up in the neighborhood. so far no. arrested in may. the killing comes in the wake of a deadly 2012 for san jose. the cities of 46 homicides last year the most recorded in the last 20 years. >> tickets for the weekend's divisional round playoff game between the san francisco 49ers in the green bay packers will go on sale this morning. >> the san francisco 49ers and the green bay packers are set to play at candlestick park on saturday at 5:00 p.m.. >> tickets for the game will be available today starting at 10:00 a.m., according to the san francisco 49ers press office. they can be purchased online ticketmaster. >> welcome back to the kron 4 morning news. watching wall street investors hope the rally will be extended. the s&p 500 rose seven. on friday, closing at its highest level in five years. >> the dow jones industrial average to its 44 points higher. >> the nasdaq rose one. . the z futures trading suggest a lower opening today. >> bank of america to pay fannie mae $3.68, buyback $6.88 in los a cell-- 368,000,000,300 68 billion buyback 600.8 billion in loans to sell mortgage mae 3.6 billion, buy back 6.8 billion in loans to settle mortgage claims. >> this week investors will be all about the earning reports. >> the second week of the new year kicks off a delusion of quarterly corporate reporting,alcoa reported first on tuesday, followed by apollo group, texas industries and wells fargo. the fourth quarter reports are particularly important because they give a preview of the company's overall performance for the year. we will also be able to tell if all the uncertainty at the end of the year. surrounding the so-called fiscal cliff had a negative impact on the company's bottom line. >> if they're ready for some apple with your wind. the bill is apple stores to be lucky charms?! ♪ yer always after me lucky charms! whoa. i forgot how good these taste! [ lucky ] ♪ they're magically delicious now all general mills big g kid cereals have more whole grain than any other ingredient in cereals like lucky charms and cinnamon toast crunch, the delicious way to help them grow up strong. sell for around $800. vizioa high-definition tablet has a limi11.6 cents crane and the full version of windows a. by comparison, microsoft's own window 8 surface tablets sales for $1,000 and features and a inch screen. >> will be back with more on your weather news and >> will be back with more on your weather news and headlines and staples is the number 1 office super store ink retailer in america. >> will be back with more on your weather news and headlines and now get $6 back in staples rewards for every ink cartridge you recycle when you spend $50 on hp ink. staples, that was easy. >> welcome back. then as i know you love science stories. i will do this on. >> some scientists predict melting glaciers and antarctica and greenland the push of global sea levels more than 3 ft. by the end of the century. >> if such a rise in the oceans were to happen it would displace millions of people from low-lying countries. >> some evidence suggest reason accelerate melting is related to changes and ocean and atmospheric temperature, though natural variability may play an informal. >> some evidence suggests a recent accelerating melting is related to changes in the oceans and atmosphere temperature, go natural variability may play an important role. as a result there is tremendous uncertainty in the scientific community over how the melting will affect sea level so the next year. >> fault is back in the forecast this morning. it could be clear for you but then you can hit the fog like a wall. certainly it keep that in mind. >> we are above freezing. 34 in vallejo. napa santa rosa 44 degrees. 37 in san mateo. the fog the big story. visibility less than a mile for napa. down to 5 mi. for concord. livermore is down to 3 tenths of a mile. it is certainly really foggy. drive with caution. storm tracker 4 highlights hit quita o'clock hour. you can see some ground fall depending on where you're located. >> in the afternoon fog will start to burn off. we will see sunshine for most spots. partly cloudy skies around the waterfront. as we take a look at numbers we are between five and 10 degrees warmer compared to yesterday afternoon. fremont 57. 594 milpitas and san jose. 58 in sunnyvale. a dry day ahead for the east bay. fairfield at 57. 58 for san leandro and walnut creek 59 in union city. low sixties for the north bay. napa 60 degrees. 61 for santa rosa. 58 in san raphael. >> so i and radar shows we do have rain to contend with--satellite and radar shows we have rain to contend with washington and oregon. >> mostly sunny skies and temperatures above the seasonal average. >> your kron 4 7 day around the bay forecast shows warmer weather for the next couple of days. wednesday into thursday we could see some rain. the wind's will start to pick up cooler and reconditions for friday. the weekend looks nice so far. sunshine and temperatures in the upper 50s. >> 5:18 a.m. that is your forecast years traffic with george. >> thank you erica. a good ride around the bay area no hot spots or delays. but us look at the bay ridge in your westbound commute traffic is light leading into the toll plaza no problems here or delays. ablaze with the rise coming in from the macarthur maize for the east shore freeway. >> the san mateo bridge looks good no delays across the span. we could see a spike in the 7:00 hour if we are back to the usual pattern. >> off the golden gate bridge and 101 southbound an easy trip coming in from marin county. drive time update shows interstate 80 west bound hercules to berkeley 12-14 minutes. no delays for the right coming down. your commute through the san ramon valley and 16 minute drive into dublin. no delays for 580 west. south bay freeways are clear. no problems although there is a accident in mountain view reported at shoreline. >> the marin ride is delay free 4101 southbound. james. >> the alameda county coroner have identified a man who was killed on 880 in oakland over the weekend. >> c h peace says 44 year old david mayorga crashed his honda civic into the center divider on nearby streets and an attentive to run across four lanes of traffic last night. >> mayorga was struck by two cars and was killed. >> the crash blocked traffic on north bound 88 for several hours. because of the initial crash remains under investigation. >> the man accused of murdering seven people at oikos university in will be back in court today for a mental competency hearing. >> one goh has been charged with murder and also faces attempted murder charges. >> this is video of his court hearing in april. >> hoh is accused of going on a shooting rampage at oikos university in april of last year. school administrators say, he was upset about it was in dispute. >> he allegedly confessed to being the shooter. beating a san jose family is lucky to be alive this morning after their arrive caught on fire. >> the fire happened on the 2500 block of loomis drive around 630 last night. >> authorities said mel occupant was inside the home at the time was able to escape without any injuries. >> officials say the fire spread throughout the house causing major damage. the fire was brought under control shortly before a period residents were displaced by the fire. >> oakland police said they have found a 63 year-old woman was been missing since friday. >> police say gloria gee left her home for work at about 630 that morning and never arrived. >> she was reported missing are husband a few hours later our car was found later that day and oakland. >> police are not saying they founder the they are- that they have confirmed she was located last night safe and in good health. >> an elderly san francisco man missing since new year's day is turned up at an oakland hospital. >> authorities say 92 year- old wall term wakumskii was at golden gate fields racetrack in albany on tuesday when he suffered a medical emergency. the staff there sent in by analysts to summit medical center in oakland. he has been recuperating at summit since then. when staff realized he'd been reported missing they contacted san francisco police. >> santa cruz county authorities are trying to identify the body of a man found floating in the san lorenzo river. authorities say witnesses on the body around 830 in morning on saturday. >> they were no signs of foul play in the cause of death is not been determined foul play in the cause of death is not been determined it was not k foul play in the cause of death is not been determined it was not k (woman) 3 days of walking to give a break cancer survivor a lifetime-- that's definitely a fair trade. whoo! you walk with friends, you meet new friends, and you keep those friendships. it was such a beautiful experience. 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(woman) it's just been an amazing, amazing journey. i love these people. ♪ and it's beautiful experience thehas your ticket pressure-relieving comfort of tempur-pedic, and sleep risk-free with sleep train's 100-day money back guarantee. get 36 months interest-free financing: no down, and no interest for 3 years. plus, get free same-day delivery. sleep train's 100-day money back guarantee, interest-free financing, and free delivery? that's the ticket! sleep train's ticket to tempur-pedic is on now. ♪ sleep train ♪ your ticket to a better night's sleep ♪ [ traffic passing ] ] ♪ [ music box: lullaby ] [ man on tv, indistinct ] ♪ [ lullaby continues ] [ baby coos ] [ man announcing ] millions are still exposed to the dangers... of secondhand smoke... and some of them can't do anything about it. ♪ [ continues ] [ gasping ] >> welcome back to the kron 4 morning news. >> james holmes the suspect in the colorado movie theater shooting expected to appear in court today. >> and the grisly details surrounding the mass shooting finally go public as a preliminary hearing gets underway. >> prosecutors are expected to cost or the witnesses, this week, as a ouas they outlid their evidence the case. >> homes attorneys are expected to argue he has diminished capacity in other words, that he is insane. >> the hearing is expected to take all week. >> off secretary of state held riklis and his return to work today for the first time since she was sidelined by health problems. >> clinton was released from the hospital on wednesday following three days of treatment. >> our troubles for started back in december when she fainted from dehydration brought on by the stomach flu. the hospitals discovered the blood, whawhile testing her for a concussion. >> clinton is scheduled to meet with the secretaries of state this morning. >> the son of u.s. senator rand paul and grandson of former presidential candidate john paul is in trouble with the law. >> 19 year-old will in all phases disorderly conduct and underage drinking charges. >> he was arrested after a flight from kentucky to north carolina, and taken into custody at the airport. >> is not clear whether william was drinking on an airplane or at the airport. senator paul has released a statement, asking for privacy. >> president obama has signed a superstar on sandy aid package into law. >> the bill includes more than $9 billion to help the government pay flood insurance claims. >> it was the first legislative action of the new congress after the previous session show a vote last week on a much larger assistance plan for the last wee[ ste sfan ]n rger witwia coa or ou, u,nightgtime nmeal calgestgenn can ben the wheorst pstt. my medicedine ale e e doesn'est alwaal giv gme all the t congeonion iolief need ee sle s. 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[ stefstan ] ]and bed cause us's d'sg frg , it's s'safe toe useswi th anh medimene to rel rieve vemy nmyhttiht stu sy noy . so i c ian bre bathe bheten d sleeslbetber.er [ fem fale ane nounceun] ] go to btoreatheatght.ghm for fospeciaecoffeof. been shn oppingpio smo t, ct,h hbackbaith itur furedomedardar gettietng cas cbackban whn ? ?ose osave avd had cutcu fan f for tor cei cng. ngu'u' goa coa off ohat haooouoodd!dd tonigonht you yottaotet yetr c ck, ck new nlackla cutcu use fre fedom oomluncluwithwia! gechase asfreedoeeh .. >> here's a look at our mt. tam cam as we look at sutro tower. severance is goes and the foreground. it is rather foggy and spots and cold as well. >> good morning is the look from our roof cam intemperances go. not too bad for a start, temperatures in the mid 40's. dense fog is a factor this morning. the national weather service has issued a dense fog goodbyes three. current temperatures are 34 in santa rosa and that of 44 in richmond, 38 in hayward. into the afternoon expect temperatures to be between five and 10 degrees warmer than yesterday. we'll be drive plenty of sunshine that continues into tomorrow as well. rain will be back in the forecast and i will break down and show you what to expect in my next report. >> the san mateo bridge lanes are clear and there are no problems with visibility. at the dumbarton bridge there is a flood advisory. traffic is already starting to get a little heavy on her to go commute rates interstate 580 and highway 4. heavier traffic through the also my than antioch. >> a severance is go 49ers are gearing up for this weekend's match up against the green bay packers. tickets for the great big game go on sale this morning. jackie sissel is joining us live from candlestick. good morning jackie's >> good morning. today is the big day where the tickets for the game go on sale. because the 49ers have such a high season ticket base we are not sure exactly how many tickets will be on sale. they do go on sale this morning at 10:00 a.m. and you have to get them through ticketmaster. pricing wise, you're looking at tickets between $116.430 dollars. that is face value. you can go to the other places like craigslist or stub hub they are more expensive. here saturday night at 5:00 p.m. will be the second time the 49ers pays the green bay packers this year. let's hope they have the same results they did in the first game of the season where they beat the packers. >> and the packers are a good team and the niners played very well in their last match up. we hope they do well again this time. >> we are watching appointments in washington. president obama named republican and shot hegel to become the next defense secretary. some lawmakers are already it was in opposition to his nomination. senator lindsay gramm expressed concern sunday about hegel's past positions. hail will have to overcome vocal opposition from pro-israeli groups who object to his stance on i arrive and hamas. he has also faced opposition from gay-rights groups for a comment he made in 1998 for disparaging been president bill clinton's nominee for u.s. ambassador to luxembourg who was openly gay. president obama also has a new appointment for the director of the cia, john brennan. he served in the cia for 25 years and currently serves as presidents top counter- terrorism adviser. he was glad to be nominated and 2008 but braden withdrew his name and questions about his connections to enhance the interrogation techniques and the cia during the bush administration. >> assemblywoman nancy skinner is scheduled to reintroduce legislation aimed at a tougher gun control and california. she is expected to propose a law that will regulate and tighten ammunition sales and the state and ban high- capacity magazines. oakland mayor jean kwon is expected to attend the news conference announcing the legislation. skitters new bill will require background checks and will require ammunition purchasers to show their id. the bill also proposed what that all ammunition sales be reported to the department of justice among other regulations. we'll have a live report from kron4 as will tran and the next half hour. >> authorities are investigating a shooting that ended a 16 year-old girl there cappuccino high school and millbrae. the san mateo care county sheriff's office says the shooting happened late saturday across the street from high school. the victim is in stable condition but how she is linked to the shooting or if there was a motive behind act is still unclear. police said it also currently do not have a suspect description. >> san jose is giving to former employees more time to pay back the city home loans that were offered as a recruitment park. those mortgages are now under water. so by the taxpayers have not been hit with any of the cause but if the mortgages should be fought the city would be left to cover the loss. >> sam trans will be launching a new car sharing program for local governments and other organizations. the peninsula fleet share program will with member organizations the borough vehicles as needed and lend out their own. the programs to allow members offset the cost of owning large shuttle's in abeyance by renting them out to others. renters will get lower rates than those offered by commercial agencies. sam trans says this is an 18 month pilot program. >> we will take a break, five forti5:36 a.m. is the kinde names straight ahead and we will visit with erica and george wants more. --once look at you guys with your fancy-schmancy u-verse high speed internet. you know, in my day you couldn't just start streaming six ways to sunday. you'd get knocked off. and sometimes, it took a minute to download a song. that's sixty seconds, for crying out loud. we know how long a minute is! sitting, waiting for an album to download. i still have back problems. you're only 14 and a half. he doesn't have back problems. you kids have got it too good if you ask me. [ male announcer ] now u-verse high speed internet has more speed options, reliability and ways to connect. rethink possible. >> eric schmidt is in north korea as part of a delegation led by former new mexico gov. bill richardson. richardson says it is billing as a private citizen isn't interested in north korea's economic issues and its use of social media. richardson says the delegation also plans to acquire about a korean american u.s. citizen detained there. the hope is to lay the groundwork for the detainee to return home. the state department is not very happy about this visit. it comes a month after north korea launched ballistic missile in violation of a u.n. ban. >> five men accused of raping and killing a young student at the indian capital have arrived at court for pretrial proceedings. police have charged man with murder, rape and other crimes that could bring them the death penalty. the crime calls nationwide outrage leading to massive protests. a sixth suspect was 17 years old was expected to be tried as a juvenile and courtin court or te maximum sentence will be three years and a reform facility. >> australian authorities are searching for dozens of people may be missing and wild flowers buyers of south east asia o tasmania. those wild fires of already destroyed more than a hundred homes and searches are sifting through the remains for bodies. under the residents have also been evacuated from the tasmania peninsula because the fires and blocked roads in and out rule communities. firefighters and having a tough time getting the flames under control because of the rough terrain and the city to gain the upper ground this week. >> we have areas of fog this morning, also a last look at the james lick freeway. traffic is elight at this early hours so far. 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[ ding ] [ female announcer ] pillsbury cinnamon rolls. let the making begin. ♪ ♪ ♪ conquer dinner. one cut of meat at a time. the everyday collection. by target. >> is by 40 4:00 a.m. and a man is on the run this morning after allegedly setting a woman on fire and sam francisco's bayview district. police say 20s what 22 year old dexter oliver and the victim were dating. she is currently being treated in a burn center at st. francis hospital. however is facing its of the murder charges, including arson. president obama plans to make named a former republican senator chuck hill as his nominee for defense secretary. administration officials say the president called hail yesterday. some lawmakers are voicing opposition to his nomination. president obama will also nominate john brennan for director of the cia today. >> about a live look from our roof in san francisco. fog is not an issue getting into the city but in some locations it is. >> we have fog impacting our inland areas this morning. this is our roof cam in downtown san francisco. not too much of an issue. >> partly cloudy skies there and visibility is good around the heart of the bay. livermore, visibility there down to just three tenths of a mile. 5 mi. if you're committing around concord. we have patchy it right now we e currently in the 30's and '40's. future cast four into the 8:00 hour of looks like most spots are sitting in the '40's. putting the clock and of motion by lunchtime we could see low 60s for the north bay. later on tonight it will likely stay on the warm side and all the light blue indicates everyone in the low 50s. take a gander at your afternoon highs, temperatures will be warmer than year yesterday. fremont comes at 57 degrees, 59 in palo alto 58 in sunnyvale. mostly sunny skies and the east bay 57 expect to deliver more and low 60s trickling in for napa and santa rosa. satellite and radar shows we have some rain in washington and oregon. high pressure is in control over us. 7 day around the bay shows rain could be back before cast as early as wednesday night. fog will continue into your thursday and the winds will start to pick up as well. expect the cool and breezy friday with temperatures in the mid-50s and nothing but sunshine and the upper 50s as we head into the saturday and sunday. >> at the bay bridge there is no back up yet but there are a few cars stacking up at the cash lanes because of the ship lines for the poll takers. the bridges still look good even though the dumbarton bridges under a fog advisory at the san mateo bridge conditions are clear. drive times are still good at 11 minutes. the golden gate bridge has no delays on the 1 01 southbound. to give the drive time on interstate 80 it is still at 40 minutes hercules to berkeley. 24 is clear and so is 680 south from pleasant hill and to walnut creek. a little slowing showing up leading to the dublin after change on 580 westbound. the ride to the south face still looks good and we are problem free for the trip coming up on highway 85 outboard mountain view. >> i do this story every day. lindsey lohan is expected to appear in court today. she will learn whether a prosecutor will pursue misdemeanor assault charges against her. she is accused of punching a woman at a manhattan nightclub in november. her lawyer says the actress is once again a victim of someone looking for 50 minutes of fame. after today's court appearance lindsey lohan will face a probation hearing violation hearing next week. the hearing stems from november car crashes santa monica and the actors has been in and out of court 19 times since 2007. >> the nfl wild-card weekend draws to an exciting finish with a method of to surprise playoff teams led by rookie quarterback. the seattle seahawks at quarterback russell will some flex their muscles on their way to a 24 to 14 victory over robert griffin at the third and the washington redskins. former cal bear marchand lance ran for 132 yds and a score as seattle broke in eight game post-season losing streak on the road. that will go on the face the top seed atlanta falcons' next sunday. >> san francisco's famed exploratory and begins its move to its new location today. the popular science museum is moving down to the waterfront at pier 15 along the embarcadero. wednesday marked the end of its 43 arrive at the current spot at the palace of fine arts. it outgrew that location in simply ran out of space. exploratory and host more than 500,000 visitors annually and offers hands-on exhibits about biology, physics and other scientific field. >> the number of flu cases continues to rise across the country. the cdc says more than a third of the states are on the verge of epidemic levels. more than 22 under people have been hospitalized in the united states. 18 children have died so far this flu season. the cdc says the uptick in the flu activity this year comes about a month before authorities normally see at and the primary strain has been associated in the past with more severely flu seasons. the blue often peaks in january, february or even later. the fda is dishing out new rules of an effort to eliminate the board ellises' like salmonella, listeria and e. coli. on the proposed rules requires science base standards for growing, harvesting, packaging and holding produce on domestic and foreign firms. the sec requires companies that plans for food or illnesses. each year one out of every six americans get sick from food borne illnesses and about 3000 die. add the proposed rules get the ok companies will have up to four years to comply. >> a new poll suggests that not all americans are aware of the risk associated with obesity. the poll finds that one quarter of people think it's possible for someone to be overweight and healthy. researchers say americans are aware of obesity risks such as heart disease and diabetes. however, they found not everyone is aware obesity is linked to cancer, arthritis, sleep apnea and infertility. researchers say heart disease remains the nation's leading killer and diabetes and obesity rates continued decline. coming up, and more news weather and traffic. also a reminder to catch dr. phil right after the kron4 morning news at 10:00 and as well as 4:00 this afternoon. >> the time is now 555 in welcome back. taking a look at the golden gate bridge this early monday morning and we have a chilly start out there. the temperature and napa is a cold 35 degrees. this afternoon as looking really nice with temperatures stopping in the lower 60s. we will continue that mild friend through tomorrow. >> the national archives is displaying rarely seen documents and items selling milestones in manned space flight from president nixon's administration. nasa said the first man to the mall on apollo 11 mission during nixon's presidency and follow with five more looter missions. the archives look back at nixon's support for the space program. the new exhibit will open today and will include the telephone nixon used to talk to the apollo 11 astronauts after their moon landing. a speech drafted in case of a disaster, and items used to collect moon rocks. >> the latest installment in the texas chainsaw franchise has claimed the top spot at the box office this weekend. the horror sequel texas chainsaw 3 d was number one with a 23 million-dollar debut. it is a follow-up to the 1974 film. meanwhile quentin tarantino's revenge sought godjango unchained held on to the no. 2 spot with just over $20 million. three weeks after claim box office gold, part one of peter jackson's behalf the trilogy was in third place with $17.5 million. >> a suspect in colorado movie theaters shooter james holmes will appear in court today. we will have more on the details that are expected to be revealed in court this week. also this morning bank of america agrees it's a pay $10 billion to settle claims over mortgage loans. we will talk with rob black at 6:45 a.m.. at the kron4 morning news will be back in just two minutes.
FremontCaliforniaUnited-statesGreenlandNevadaAustraliaAlameda-countyRedwood-cityTurkeyAntarcticaBeijingChina what, 3.5% sell-off, at best? that's been the correction? >> exactly. look, the other day, the dow had its worst day since, like, june 28th. >> yeah. >> it was only down .3%. >> what do they do, they bought on the dip. >> they did. the question is, will they this time? >> will they this time? the investors are waiting on a flurry of major earnings an hour from now, groupon, tesla, some battleground names there. we'll have the news first and the analysis of the stocks as investors react after the close tonight. >> yeah. international soap opera playing out on the world stage. president obama announcing he's skipping a planned meeting with russian president vladimir putin in moscow next month. this, of course, in response to mr. putin taking in nsa leaker edward snowden, but as the president stands up to a global bully, a warning that it could come at great cost. we'll have that story, too. >> the developments keep coming from russia. let's look at wall street as we approach the final hour. the dow is now down about 51 points, as we can see. it is bouncing off of the lows, reached really in the morning hours. we are looking at a decline of 52 points. we'll check the nasdaq, where we're seeing declines there, down 11 points. 3,654. the s&p 500, looks like a similar chart pattern across the board here, bouncing off of the lows on stand & poors, down about 6 points at this hour. >> who else, but bob pisani on the floor all day with the traders. bob, will we have this three-day losing streak, or will we turn around in the next hour, the final, the most important, and often the most wild? >> reporter: we don't seem to have the energy to pull it off. but 53 points is not far. it could easily happen. i'll tell you the major story what i'm impressed with is the federal reserve. in the last few day, it's made very clear -- put up the dow -- the hawks, the doves, the moderates, everybody seems aligned. sandra came out in the middle of the day, the head of the cleveland fed, added her voice, said she's inclined to taper if the data keeps continuing as it's indicated. the market shrugged that off and interest rates are not moving to the upside. so the market's fairly calm. let's loot at the earnings situation. i know big names are coming out. we're moving towards the end of earnings season. everybody beat up on disney because of "the lone ranger," but "monsters university" was a big hit. cable fees up. cash sales at espn were up 11% for the quarter. the numbers were great ex-"lone ranger." disney was the fourth best performing stock this year in the dow, up about 35%. so give it a little bit of a break there. wellcare, up, and time warner not doing too well here in the middle of the day. we're at the end of the earnings season. almost 90% are reporting. basically the ones left are the retailers. they have another month left on the earnings situation. 4.6% earnings growth. that's fair. revenues down 0.5%. that's hardly changed the whole quarter. it's been negative the whole time. the outlook for the whole quarter, up 4.3%, about where we are now. we would have been much higher on the earnings report if it wasn't for three companies that really disappoint and dropped the numbers. google, microsoft, exxon. exxon just killed things. scott and maria, we would be closer to 6% earnings growth if those three -- if those three companies would have come in in line rather than below expectations. it shows you how the big-cap names can move around what people think of the numbers. back to you. >> it skews the whole market. thank you, bob. we are about an hour from the close where the dow and the s&p 500 are on track for the three-day losing streak. joining us now in the "closing bell exchange" anastasia, jason, steven wood from russell investments and brian. good to have you all. thank you very much for joining us. anastasia, let me kick it off with you. what would you be advising clients to do here, after the year we've had with a market that is showing such volatility? >> yeah, thanks. it's not that the market is taking a little bit of a pause here, because we're processing all of the data we're getting from the economy, but also all of the information we're getting from the fed. i think what's really key here to note is the preponderance of the evidence is shifting towards the defendant here. the defendant being the fed and the plaintiff being, well, the market. and that's really for a very good reason. you know, the data is improving. so it's not a surprise that the fed is starting about tapering here -- start talking about tapering here. so we have to take that in context and realize there's some very good fundamentals backing it up. so rising rates do not necessarily derail the story here. >> although, steven, there is talk today as we look at the three-day losing streak that the market, despite everything that's been said over the last couple of months, is still not ready to accept the fact that the taper might be coming and might be coming soon. >> well, i think it's priced in. may 22nd. i don't think chairman bernanke misspoke. so september seems to be the high probability event meeting. by the end of the year. but the bond market has moved up to 75, 100 basis points, which we expected. so that's priced in. so i think the market will turn the gun touret around. >> steven, do you really think -- it's august 7. do you think we'll see the fed begin the tapering in 30 days? >> i think the fed is going to change the language. i think they're going to kind of grease the skids a little bit. and what happens, i think, is going to be more important for the next chairperson of the fed and what she thinks about how to do this. if you look at the bernanke fed that wants 6.5% unemployment, if it's a yellen, it's a five handle. getting 2.5% inflation, 4.5%, 5% nominal gdp, that ain't going to happen. easy money for a while. >> yeah, the data from my standpoint, you're right, anastasia, things are getting better, but we're talking about unemployment persisting. the corporate sector, while the healthiest it's been in a long time, uncertainty looming. >> corporate growth -- or growth, itself, the gdp numbers weak. byron yesterday on cnbc saying that there's no way that the economy is ready for the fed to pull back. >> we're looking at this is a yield normalization process. and in that normalization process, then we can go back to worrying about the economy and earnings, which is what we're supposed to do at investment managers. >> the key here is -- >> one of the things we're not talking about -- >> -- is supporting the notion that fed will taper sooner rather than later. if you look through the minutes we've gotten the last -- the last month or so, you see that the majority of the members actually agree that we've had cumulative improvement in the economy, and in some cases cite it as substantial, some cases considerable. but at the same time, the majority of the respondents are saying more improvement is needed. i agree with you. it should be a multistep program to get there ultimately. i think a part of it, the first leg is priced in, where the market had to get comfortable with the notion, by the way, we can reduce purchases. the next leg of it is going to have to be, by the way, we intend to reduce purchases. so that's -- that's another leg of the adjustment. >> who was jumping in there, was that jason? >> that was me, yeah. >> yeah, go ahead. >> one thing that has not been talked about very much is the fact that the treasury issuance is actually declining because the deficit is shrinking. the fed may actually be in a position now -- i know bernanke is denying this, but i believe the fed may be in a position that in order to remain as stimulative as they are now, just to keep things even, they have to taper to match the decline in treasury issuance as we go through the next year. >> brian, so if it's going -- if it's going to be a little more difficult perhaps to make money in the second half of the year, it must be a stock picker's market more than ever. >> very much so, and, in fact, scott, our work shows the correlations have fallen pretty dramatically. i think a lot of investment managers have missed that. we also show through our work that the top 50 institutional investment management firms in america have been becoming even more so tracking their error very closely in the benchmark, meaning they're hugging the benchmark. and they are indexing, meaning they are worried to give up the gains. i mean, common sense-wise tells you that the market has to have a little bit of a respite. we're up 20%. it's august. this is very normal. we're talking way too -- we're putting way too much into the notion that this is already priced in. we are in a real reactive market, folks. and the minute the fed starts talking about tapering, we're going to see some volatility in the market. >> yeah, we are. >> what's the alternative? i mean, brian, you know, if i want to take money out of the market now because i'm afraid of tapering, where do i put it? >> well, again, maria, we've never been one that wants to time the market. we think stocks are much higher five years from now. but we think the market's already hit its high for the year. so there's nothing wrong with taking a little bit off the table here, holding some cash, shorting your -- shortening, i'm sorry, your duration of bonds, being more diversified. but the bottom line is the majority of institutional managers in the u.s. have underperformed. so there's going to be some volatility if and when we see prolonged market weakness, they're going to take some profits. >> but, steven, and to maria's point and brian's point, maybe the gains have been made here. maybe it's time to look outside the u.s., emerging markets and elsewhere, for better tonight and for better values. >> valuations matter. so the market looks fairly valued. that's a loaded state. it looks fairly valued in the u.s. small-cap space, russell 2000 up over 25% year to date, 20% in the russell 1000. those are good returns. the emerging markets, international, look at that globally diversified multiasset strategy. so take out all of the above, throw in the list of infrastructure, again, long-term investment, valuations matterment but the stock picking, i think, as those correlations come down, picking better securities in a challenging environment is going to be more important. >> so valuations matter. so, what, 16 times? >> to get up -- >> what are we talking about now in terms of the s&p 500? 15 times? >> i think you could get multiple -- >> -- ballpark of 16 to 17 times. >> 16, 17. >> one of the things -- >> the high end of the range. >> 16, 17 times -- [ overlapping speakers ] >> so people like jeremy talk about multiple expansion. >> i'm sorry, jason? >> yeah, if you go -- if you start going to broad, you look at, you know, emerging markets. this is the most hated asset now within the global spectrum, trading at basically ten times earnings, sort of levels '08-'09, and they definitely have their problems. people are afraid to catch the falling knife there. i argue that the story there isn't through as far as the emergence of many of the markets. maybe not the bricks, but maybe the next level down. and you look in europe and just developed markets, the valuat n valuations there are still 10% discounts to where they should be longer term when equity markets in the u.s. are arguably 5%, 10% premium with where they should be long term. >> i just wonder, brian, you know, where within the market -- where are the best places to look? you cannot just, you know, the rising tide is not going to lift everything from this point forward. >> yeah. >> where are the best opportunities lie here? >> well, first of all, we get really worried when people start talking about buying stuff on valuation. i think sometimes you get into this valuation trap type of situation where you have a numerator and a denominator. the problem we have trying to make a broad call on the bricks or europe is you don't know what the denominator looks like the next two years. we don't see the growth there. we think they're close to value traps than growth opportunities. in the u.s., we want to be in financials, industrials, and tech because the denominator there are the most consistent earnings, and we think financials in particular are in a great position the next two, three years, especially where interest rates are and the yield curve is. >> hmm. so one thing that was just said on the panel about europe, would you buy europe right now? >> stock-by-stock basis, yes. >> i think europe absolutely is the catch-up trade. look at the trades in june, and so far for the quarter, it's "catch me if you can" trade, so to speak. >> brian, you said, you don't want to look at something with valuations. you want to look at where the growth is. jason, would you buy europe here? >> europe to some degree, and also selectively within the emerging markets. i think there's some great companies out there that have been trounced this period, and they are longstanding companies that will be around for a good long time, and are trading at significant discounts. >> all right. thanks, everybody. appreciate your time. thanks, steven. >> thank you. >> we're in the final stretch of trading. 45 minutes until the closing bell sounds for the day. we have cut the losses in half. the low down about 97 points earlier. looking at a decline of about 40 points on the dow now. >> yeah, the market still seems to be trading on the fed and taper talk. more than ever. and with the talk that that'll happen in september as investors are getting even more jittery, but is it justified? that's next. >> yeah. also ahead, it seems like something out of "star trek." we'll tell you all about it next. a-a-a. f-f-f-f-f-f-f. lac-lac-lac. he's an actor who's known for his voice. but his accident took that away. thankfully, he's got aflac. they're gonna give him cash to help pay his bills so he can just focus on getting better. we're taking it one day at a time. one day at a time. [ male announcer ] see how the duck's lessons are going at aflac.com otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ all right. we have about 45 minutes left in today's session. here's how the markets are doing right now. take a look at what the dow is doing. it's cutting its losses and actually is only down 38 points now. we told you this is the final, most important, and often the most crazy hour of the trading day. >> ah-ha! >> the nasdaq is still lower, as well, by about 9 points. s&p 500, as you look on the screen, is down .25%. >> and we hurt from art who said it's neutral in terms of the bias going into the close. i said, why is it so quiet today? he said, maria, it's august. the weakness in stocks today, yesterday, largely being pinned on talk from fed officials that they may ease up on the stimulus as early as next month. in fact, japan's nikkei overnight down 4% on that talk. >> but are investors and traders right to be pegging so much on what the fed may or may not do? with us now, greg, the u.s. economics de s editor for "the economist." and rick with us. rick, i know what your opinion on the fed is. >> and on taper. >> but do you think that the economy is ready, in part, to byron wean's point, that it's not to pull back the stimulus at this point? >> yeah, you know, i think it is time. but not necessarily for the reasons or lack of reasons of byron. i think that when i look at the economy, if my answer is, if the fed tapers or they shutter their programs that the economy is going to suffer, it's going to slow down, to me, the real issue isn't that. the issue is what is the normal, what is the sustainable growth rate of the economy, and how will that be affected in a bigger picture? in other words, if this is close to the new normal with regard to issues like jobs and issues like wages, then i think the fed's programs have gone on too long, addressing the new normal, and the balance sheet is too large. in my opinion, we don't have an idea about the true sustainability or durability about the economy, because the only message we're getting in this regard in many ways is distorted, and that's equity prices. >> so, greg, that's basically what rick has been saying for sometime, that he does not want to see this manipulation, the fed really controlling everything. but let me go back to scott's initial question, and that is about the economic data. >> yeah. >> given what we know in terms of the anemic recovery, can the fed step away as early as next month? >> well, i think the key is, they can start to step away, but they can't take away all of the stimulus. the fed knows that. that's why the september initiation of the taper will be a baby step. i think what is interesting about all of the fed commentary you've had, charlie evans yesterday, sandy pinalto today, looking for reasons to start that process, looking at a glass half full on the economy, not a glass half -- >> greg, what does the fed -- you said the fed knows they can't do that. enlighten me. what do they know, which is the reason you're referring to, why they just can't shut the switch off. >> because the economy, the economic recovery is still evolving. >> you don't believe the stock market and the economy are doing as well as the numbers on the board at 15,479 say. >> the fed is trying to aim their policy -- >> that's not what i asked. that's not what i asked. do you personally believe the economy -- do you believe the personally believe the economy is as strong as what's represented by the indices. >> no. >> no, i don't think so either. that's how i feel, too, greg. >> let me add a point here. the fed is not looking primarily at the stock market as their signal about whether or not to move. >> so they say. >> they're looking at the labor market. the point is we've had progress. is it as much progress as anybody wants? no. but they are thinking a year or two from now when we are finished this process of tapering, where will the economy be, where we want it be? >> so seven years. it takes seven years, okay. >> rick. rick. what is more reflective of where we really are? is it 15,479, or is it 1.8? >> well, i think since they dissed the gd report and dissed jobs, i would say the two areas i would find most important in terms of barometers about the economy have fallen out of favor, because they don't march in the right direction. i personally think, yes, jobs is underperforming. i think the economy, as demonstrated i go gdp, is underperforming, but what i would question greg about, do you think the fed is having an impact on unemployment, or is it just the five-year improvement that would have occurred in large respect regardless? >> that's an impossible question to answer because you have to do a -- >> indeed it is. indeed it is. [ overlapping speakers ] -- fed strategy and -- >> ron, jump in here. let's -- >> i was having so much fun listening, maria, i don't see the point. >> we can keep going. >> i'm sure you don't. >> well, what -- listen, here's what i think. you know, we don't know a lot about deflation, and the world faces more deflationary forces than inflationary forces. the federal reserve, in addition to looking at labor markets, in addition to looking at gdp and other measures of growth, has done a great deal of work on the impact of deflation on big economies like our own. i think that some of this taper talk should be put to the side until the fed actually knows what it's going to do. they're confusing the markets now, as individuals position themselves for the post-bernanke era. but perspective, irrespective of what the fed is doing, needs to continue with the program because it is fighting in the larger sense a deflationary wave that swept over the globe. so i don't think that it's beneficial to pull away quite yet, even though i think there are sectors within the economy that are considerably stronger than most people want to give it credit for. >> yeah, ron, i want to make one point here. ron, i totally agree with you, you don't want to pull the whole program away. but what we're talking about, if you look at, for example, steve liesman's survey -- fed survey, the market's expecting them to go from $85 billion a month of bond buying to $65 billion. so they're still in the market buying bonds, just a little less. my own view is that if they -- if that number is wrong, they're more likely to dial it back more slowly. maybe only go to $75 billion. but the key point is, i think that since you kind of cross the stream by feeling the stones, the fed similarly starts this process with the tiny little baby step, precisely for the reasons you point out, ron. they don't know exactly whether the economy can 23fully take it and if they conclude that it can't take it, they stop, or perhaps move back in the other direction. >> from my perspective, i don't care one way or another if they go in september or december. i wish, though, that individual fed officials would stop sending messages after ben bernanke comes out and says, listen, we're not necessarily close yet. then you get dick fisher, sandy, charles evans, who previously was a dove, comes out and says, oh, yeah, we can start in september. this is unnecessary volatility. they are having an impact with the mortgage rates. they're affecting the real estate, which is what ben bernanke said they don't want to do yet. >> when you have nonvoting members piping up. >> yes, excellent. and even worse. >> heck with the democratic process! throw it out the window. >> that's not what i'm saying. >> all right. >> changing the conversation, as we wrap this up, rick, before we go, we want to ask you one more thing. in light of the twitter revolution special on cnbc tonight, how is it possible that you've never tweeted, you don't follow anyone, and yet you have more twitter followers than scottie here. how often do you tweet, scott? you're tweeting all the time. >> we're neck and neck there, rick. >> you have 15,000 followers. >> i've never been able to say anything in 140 characters or less. so maybe we'll monitor when that gets expanded a bit. >> imagine if you did tweet. you would get those numbers up. >> there's no volume on twitter either, rick. >> and no one to argue with. you can't just say your stuff and not get -- >> no, i guess we just answered that question. discourse is even better. >> all right. we'll see. maybe at some point, rick, he'll surprise us and send out a tweet. tonight, don't miss the special, cnbc, "twitter revolution." maybe you want to tweet about it, rick. >> yeah, you know what, if he makes a tweet, his first tweet -- >> do it on the twitter revolution. >> do it about the twitter revolution. santelli, i'll follow you, and you better do that. >> i'll follow you. i'll follow rick. 35 minutes before the closing bell. a market is under pressure, down about 45 on the dow. we had been down about 97. >> up next, yahoo! changing its logo, and it knows what it will be, but it won't tell us, instead showing us the ones they chose from. we'll get to the bottom of the unique rollout up next and find out how the experts are reading this stock. and then, the 3-didn d prin the next big thing? 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[ male announcer ] you wait all year for summer. ♪ this summer was definitely worth the wait. ♪ summer's best event from cadillac. let summer try and pass you by. lease this all-new cadillac ats for around $299 per month or purchase for 0% apr for 60 months. come in now for the best offers of the model year. yahoo! will release a new logo in a month, but not before showing you the ones that didn't make the cut. jane wells has that story. jane? >> reporter: ooh! scott, you know how, like, if you lose a lot of weight, you look great, you want to get the whole wardrobe? well, if it is indeed a whole new yahoo! it needs a whole new logo. ♪ so what the logo is going to be remains to be seen. the company is teasing us with potential looks over the next month, in this youtube video, owned by google. the official new logo will be unveiled september 4th at 9:00 p.m. pacific, midnight on the east coast. rosh hashanah, not sure why the date was chosen. they still favor the color purple and it will still have an exclamation point. maybe they'll bring back the yodeler. they says as the company evolves, the logo should as well, announcing on tumblr, which it bought for over $1 billion, that the new logo will be a modern redesign but keep the fun, vibrant, welcoming characteristics. the logo you see there, it's going. while it may not be clear what yahoo! is evolving into, its stock has evolved into a winner, up nearly 40%, and outperforming google. scott and maria? >> jane, thank you so much. this is a cosmetic change for yahoo!. but the company going through a pretty significant overall change since marissa mayer took over one year ago. the stock has been on a steady climb. is it a buy at these levels no matter which logo it chooses? let's look at yahoo! and talking the numbers. on the technical side is todd gordon with tradinganalysis.com, and on the fundamental side is pat dorsey. good to see you both, gentlemen. pat, based on the fundamentals, do you like yahoo! right here? >> no, i wouldn't touch it with a -- the proverbial ten-foot pole. >> why? >> you have a declining ad display business, half of the market share of facebook and google with no ability to personalize or target. and ownership stakes in japan, trading respectively at eight times and five times sales, very richly valued. so you're buying a crappy domestic business and overvalued international business. not a good recipe. >> todd, what about the chart? how does it look? >> i don't know if it's quite that negative. it's had an amazing run, up to $30.25 mark. if you look back at a long-term chart, that was the old high from february 2008. and, you know, being at that level is significant. then, if you move down to what's happened on the daily chart, an interesting reversal pattern now, an island reversal. what happened was we had a little gap-off on alli baba upgrade, it hug around the low level, and a couple of weeks later gapped down on news of a buyback from when a board member stepped down. that pattern within the context of that weekly level, i think, is a bearish reversal pattern, so the technicals over the fundamentals, i would push back around the 24, $23 mark. >> so it sounds like you're both sellers. >> i'm short the stock now. i have the position on just for that $24 trade. >> but -- >> yeah. >> you have to believe that things have gotten better on the fundamental side, pat, you know, in the last year. >> no, there's absolutely no reason to believe that whatsoever, maria. yes, the employee count has gone down from 14,000 to 11,000. but revenue hasn't improved. buying tumblr doesn't solve the personalization issues whatsoever. the sole reason the stock has gone up is that ali baba and yahoo! japan are more valued today richly than they were a year ago. it has nothing to do with the core yahoo! business which is just as bad today as it was a year ago. >> all right. gentlemen, thank you very much. we'll watch the yahoo! story. appreciate your time tonight. >> thanks. 28 minutes to go before we close it up. take a look at what the dow is doing here, down 42 points, the s&p 500 negative. we're well off the lows of earlier today. up next, handguns, engines, spoons, a few items being printed by 3d printers. not on a piece of paper. these are guns that you can shoot, engines you can run, spoons you can use to eat. companies like ford and gm are using the technology. is it time for you to get in on the action? 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back to you. >> all right, mary, thank you so much. so cool. so is this the next big thing and should you get in on the 3d printing action, or are the stocks getting a little ahead of themselves? >> joining us to talk about that is anthony of luxe research and ashmik. welcome. >> thank you. >> anthony, it's been around for 30 years. why is it getting big attention now? it's not actual printing of papers, it's products. isn't that what's different? >> that's right. one of the reasons we're seeing a lot of interest in -- media interest in particular in this technology is over the past five or six years we've started to see consumer levels that can behood for a couple thousand -- be had for a couple thousand dollars or less. the industrial applications are where most of the market is today and moving forward, and we're seeing a lot of technical advances there as well that are very exciting. >> yeah, i'm trying to see what the downside is. and the industry's growing in excess of 20% annually. you've got it being adopted more in automotive, aerospace, medical. goldman sachs, coincidentally, just this afternoon, calls 3-d printing one of eight disruptive themes going forward for a variety of reasons. what's the downside? >> yeah, i think as anthony pointed out, the industry, which started in the '80s, by chuck hill, who went on to start up 3d systems, and if you look at the independent companies, forecasting the market to reach $3 billion by 2016, twice the market value of last year. and the opportunities, of course, aerospace, medical, longer term, and as anthony pointed out, commercialization of the technology in the lower-end, consumer market, increases the penetration of the market for the open-ended opportunity. >> you know, if you look at what the stocks have done, they've all made good gains over the last year, a couple are up 70%. one of them is up 100%. it's not like the valuations look especially out of whack, except x1's is, i think, over 100 times or so. can the gains continue? have the stocks gone too far, too fast? what's your read here on that? >> yeah, the two dominant players in the 3d systems, historically traded between one and two times in a forward priced to earnings growth, and applying 1.5 peg, giving a fair value for 3d systems in the high 50s, around 60, and 100 for stratus'. and near term, the companies can report 20% in organic growth and 35% overall growth and margin expansion should support the valuations at these levels. >> so, anthony, you're expecting this business to be worth $8 billion by 2025? is that the revenue number you're expecting? what drives growth? >> that's right. and what's driving that growth is both expansion of existing applications, primarily prototyping, but also expansion into new and emerging applications like industrial production. by 2025, the consumer market will also grab, and will remain a total minor share of it, and especially aerospace, prototy prototypes, as well as automotive types. >> in the goldman note today, they point out that boeing says that it 3d prints 300 distinct airplane parts, noting a 25%, 50% cost saving per part. i think we can understand what the benefits would be to corporate america. but for consumers, is this ever going to be a viable technology? are we ever going to go to the store and buy a printer accessible for, say, under $2,000, or $1,000, to have this in our homes? >> well, that depends on what it is you want to print. if it's a standard product like a pen, then probably not. but 3d printers, sell in cases where you want customized goods. if you want a replacement part for an appliance or a vehicle that is no longer manufactured, you might be able to print it more cheaply than you could buy it or get it made. or if you want to customize product, like today one of the largest applications for consumer 3d printing are phone cases where can you add your own graphics, your own design. that is an area where i could see more expansion of consumer 3d printing. >> all right. we'll leave it there. gentlemen, thank you very much. appreciate your time tonight. >> thank you. >> thank you. >> we'll see you soon. 15 minutes before the closing bell sounds on wall street. we are well off the lows, down just about 32 points on the dow. >> after the break, we'll tell you what to watch for this this afternoon's earnings report. >> after the bell, from russia without love for putin. coming up, we'll find out what the blowback may be for president obama who is still traveling to russia for the economic summit, the g-20, but blowing off his planned meeting with russian president putin. that and a lot more coming up. ♪ "stubborn love" by the lumineers did you get my email? i did. so what did you think of the house? did you see the school ratings? oh, you're right. hey babe, i got to go. bye daddy! have a good day at school, ok? ...but what about when my parents visit? ok. i just love this one... and it's next to a park. i love it. i love it too. here's our new house... daddy! you're not just looking for a house. you're looking for a place for your life to happen. all right. the countdown to the close. let's look at where we stand on the street. we're trying to go positive, but we still have 30 points or so to go before we get there. will we make it? we do have 15 minutes, so you do never know. nasdaq, s&p still in negative territory, as well. well, scottie, green mountain coffee's earnings just one of the results percolating now. josh lipton, it's about to get very busy for you, 4:00, when all of the earnings come out. give us the expectations. >> reporter: that's right, maria. big names reporting after the bell. let's do a quick review here. we expect to hear from groupon. analysts looking for eps of two cents on revenue of $606 million, which would represent year-over-year growth of 7% on the top line. analysts at b. riley had a neutral on this one. saying they're still on the sidelines until they get more evidence of sustainability of a turnaround here. that stock, though, up some 80% this year. also, waiting to hear from tesla. the street looking for a loss of 17 cents of revenue of $383 million. a focus for investors is the company still on track with its goal to deliver 21,000 model s sedans this year? moving on, analysts look for green mountain to post eps of 77 cents on revenue of $981 million. the team over at lazard capital market, they say this one is a buy. they are looking for k-cup volumes to stay in the mid-20% range. finally, mondelez, making of oreo, analysts expect eps of 84 cents. remembering at our conference, nelson said he wanted pepsi to buy mondelez and spend off the business. pepsi responding, telling us it is sticking with its current strategy. scott, back to you. >> josh, thank you so much. about 15 minutes to go before the closing bell rings. we mentioned the dow is trying to come back a bit, but still down 32 points. >> after the bell, we're talking twitter. when will the ipo happen? should you be ready to get in on the action, or are you better waiting like you would have waited for facebook? stay with us. before global opportunities were part of their investment strategy... before they funded scholarships to the schools that gave them scholarships... before they planned for their parents' future needs and their son's future... they chose a partner to help manage their wealth, one whose insights, solutions and approach have been relied on for over 200 years. that's the value of trusted connections. that's u.s. trust. with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. all right. we're about 10 minutes from the close. the stocks still in the red, trying to work back positive. unless we get a big turnaround, the dow and the s&p in the last few minutes, we'll have the third consecutive down day for the market, and the second worst three-day losing streak of the year. >> but not a big deal in terms of the numbers. down about 38 points. we had been down 97 earlier. volume on the light side, feels like the summer august day. >> sure does. >> and with more to talk to us, rebecca patterson, with bessemer trust, and matt, and good to see you both. >> you, too. >> matt, how does the close look to you? what are you expecting? >> firmed up nicely. as you mentioned, down 93. we won't go anywhere. down 39 is a nonevent. i heard people talking about, we've hit support here in the s&p, and they're calling the bottom. so this is the sell-off that we're getting. if that's the case, that's not so bad. you kind of ride that through the rest of the week. >> what is the sell-off mean? does it mean -- it's the start of a sunler -- a midsummer swoon? you know, is it the fed, taper, what is it? >> it might be. we've had, obviously, we talk about this every day, it's been a huge year. we've had a rally in the equity market, and to have the consolidation, especially in august, with no major data coming out, it shouldn't be a shock. it's always good to say, has the fundamental picture changed? yesterday, we got some very good business confidence surveys out of the u.s., recent days globally yesterday, and valuations don't seem stretched. if we do get more of a sell-off this month, it might be a great opportunity for people to take a more medium-term view. >> and buying on the dip. >> i think we're still in that game, yeah. >> matt, let me ask you about the conviction you see from day to day. look long term for us. where are you seeing the buyers now? what sectors? >> obviously, financials have gained the most strength. some consumer staples have gained strength. what's funny is most institutional investors, they're pegged to the indexes. they're underperforming. so what are they doing? they're buying momentum. they're buying late. if anyone will make any real money in this market, they'll make a call here. maybe this is a great time too make a call in august. if you think the market might sell off, short a little bit. it's not un-american. you're protecting your assets right now. this is a great time to protect the asset when is there's no liquidi liquidity. that's something i would be looking at now. >> rebecca, maybe it's time to look elsewhere. maybe the gains here in the united states have been gained for the year. >> i don't think so. i think we will see more gains. i'm a little nervous about now through mid-september, because we have so much event risk in september with the fed meeting, possibly the fed nomination, the continuing resolution, a lot of stuff in a little window. but longer term, i still think we'll see higher levels for the u.s. market. but to your point, scott, i think right now what's interesting is that europe has taken the lead. you know, if we look week to date, month to date, quarter to date, european stocks are outperforming the u.s. and we're seeing that on the back of good valuations and less bad. we can't say europe is good, but less bad -- >> sure, bottoming, bottomed, that's what you hear. >> it's a term. >> coming from such a low base. so would you buy europe here? >> i have. we're overweight european equities and -- >> what about the emerging markets, another area where we saw heavy outflows? >> you know, maria, we can both appreciate this. sometimes things are cheap for a reason. >> right. >> you go to target, you might get something different than saks. look, i don't mean to make a joke about it. i think the valuations in emerging markets are very compelling. but we haven't seen that bottoming out, that turning in growth. i don't see the catalyst for it yet. i don't think you need to rush. >> matt, what kind of stocks look vulnerable the most, do you think, here, from a sector standpoint? >> you know, it's funny, is that, you know, a lot of people like tech in here. i'm not so sure. i think there's certain parts of the tech market that are a little frothy. so you have to steer away from them. you know, we talked a lot about tesla today. that's an interesting stock. there's two camps in that. it's a great trading story. there will be a winner in this, and there will be a loser. that's the kind of stuff i'm looking for. not particularly -- you know, particular stocks. i'm looking for broader picture. i'm looking what can i trade, what can i make money on on a major move. netflix another one, a tremendous move, and two big camps in that. you can make a lot of money in those two names. >> all right, matt, rebecca, thank you very much. appreciate it. we are looking at the first decline, three-day decline, in about two months. we've got a market that has worsened as we've been talking, down 55 points on the dow jones industrials average, with about five minutes before the bell sounds. >> because there's only five minutes left, that must mean a final countdown is in the wings. >> absolutely. and after the bell, big earnings releases, and we'll have the instant analysis after the numbers are released and that's on "closing bell." stay with us. back in a moment. , we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. it's been that way since the day you met. but your erectile dysfunction - it could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. do not drink alcohol in excess with cialis. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, seek immediate medical help for an erection lasting more than 4 hours. if you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? 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[ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ all right. welcome back to the floor of the new york stock exchange. time now for the closing countdown. it looks like, maria, it will be the first three-day losing streak for the s&p in about two months or so. >> yeah. we had some sellers today. you know, what i think is notable is that the volume's on the light side. it feels like an august wednesday. volume only about 504 million at the big board so far. i'm not reading too much into 43 points on the downside, frankly. >> i wonder if peter costa, the executioner from empire executions is -- >> the executioner! >> i like the firm name, the executioner. >> yeah. if you were a pro-wrestler, i would call you a executioner. >> i used to be in the wrestling trade many years ago. like maria said, no stock to be put into this. it's just a light trading day. everyone is still talking about some sort of tapering going on. you know, september, october. how big will it be? that's basically the whole -- everything the chatter i've been hearing. >> i guess the question is, do you use this as an opportunity to get in? i'm going to ask you to ponder that. i'm running back to the set. we have a lot of earnings coming out. thank you very much for joining us. see you in the next hour, scott. >> i already pondered it. i still think there's room on the downside. i think there's opportunities everywhere. you know what, i'm going to let the market come back a little bit. i think we've had great run for, you know, over three months. it doesn't bother me that we've come in maybe 5%. >> it's not just the taper, right? we're wondering who the next head of the federal reserve will be. earnings are largely over. there will still be data coming in, even though the volume's light. not many people will be around between now and the end of the month. >> yeah. it will be a slow -- i think the next two, three weeks, you won't have much going on. you'll have the -- basically, two sides of the fed talking almost incessantly about one taper or another. that's about it. [ bell sounds ] you in the steel cage, you against gordon. maria picks up the next hour of the "closing bell." and it is 4:00 on wall street. do you know where your money is? hi, everybody. welcome back to the "closing bell." i'm maria bartiromo on the floor of the new york stock exchange. we had a downer day today for the stock prices. the market down for a third day in a row on concerns that the fed may start paring back the bond buying as soon as next month. meanwhile, groupon, mondelez, green coffee, tesla motors, all posting earnings any minute now. we're waiting on that. we'll have full team coverage. look at the stock's reaction in the extended hours. before that, let's tell you where the market closed on wall street today. the down indus
United-statesNew-yorkGreen-mountainMoscowMoskvaRussiaJapanSouth-carolinaChuck-hillRussianAmericaTodd-gordon welcome, everybody. a special edition of "starting point," live this morning from newtown, connecticut, the site, of course, where an unthinkable massacre at an elementary school has really shifted the landscape in the gun control debate. here is the latest on that president obama meeting with senior staff and cabinet members yesterday, to see proposals that will include reinstating a ban on automatic weapons. overnight, we've learned dick's sporting goods has banned the sale of ar-15 rifles and other guns like it. in fact, the modern sporting rifles section of dick's website, blank this morning. the company released a statement saying this. out of respect for the victims and their families, we have removed all guns in our store nearest newtown and suspended the sale of modern sporting rifles in all of our stores chain wide. in this community, grief counselors and extra police patrols will be on hand this morning when children, all over newtown head back to class for the first time since friday. sandy hook elementary school is a crime scene and it remains closed. jessica rekos, one of 20 children killed on friday, will be laid to rest on friday. 6 years old. adored horses. couldn't wait for her tenth birthday. her parents promised her, in fact, when she was 10, they would buy a horse for her. after newtown buried two 6-year-old boys, noah pozner who loved tacos, and jack pinto who loved the new york giants. more throughout the morning, including gun control laws. first, john berman with developing information on fiscal cliff negotiations. fiscal cliff talks haven't received much attention in recent days for good reason. but today is the two-week warning, with some good news to report. overnight, we learned president obama made an eye opening offer in talks with house speaker john boehner. under the new proposals, tax rates would go up on those making above $400,000. a big shift. the president has long campaigned on that number, starting at $250,000. the president also offering spending cuts worth $200 billion. for his part, speaker boehner who has all along refused to consider any raising in the tax rates has proposed tax rates for households making $1 million. so movement from both sides. cnn's dan lothian in washington with the latest on this. good morning, dan. >> good morning, john. the big question, can speaker boehner sell this proposal to house republicans? this is very dramatic, president obama had always dug in, saying there was no deal unless taxes went up on households making more than $250,000. now the president raising that to $400,000. this new proposal or counterproposal coming during a meeting at the white house between the president and speaker boehner yesterday. it lasted 45 minutes. in addition, the president proposing $1.2 trillion in new revenue. down from 1$1.4 trillion and 1$2 trillion in spending cuts. this meets the demand that speaker boehner had for an equal amount of spending cuts to revenue. but house republican aides say while this is a step in the right direction, they don't believe the president's math really adds up. brendan buck says a proposal that includes $1.3 trillion in revenue for only $930 billion in spending cuts cannot be considered balanced. so still some distance here between both sides can actually reach an agreement here. white house sources say that this is not the final offer from the president, signaling there could be some room for compromise, john. >> a big day for speaker boehner as well. 10:00 eastern time, scheduled to meet with house republican members to update them on negotiations. really needs to take their temperature on this, doesn't he? >> he does. a lot of house republicans have been unwilling to budge on incomes, tax hikes going up for even high-income americans, and now john boehner is proposal that $1 million, the president now with $400,000. and so this is a tough sell for house republicans who have insisted that they wanted those extensions to continue for all americans, because they believe that it will have a negative down turn pressure on the economy. they will put pressure on those who are the job creators. a big sell. interesting to see if they can convince those who are pushing forward. >> we'll check back in with you a little bit. dan lothian, thank you very much. back to newtown and soledad. >> we mentioned the gun control debate has taken on new urgency after friday's massacre at sandy hook elementary school. more lawmakers moving in the direction of tighter gun laws in the aftermath of the tragedy. emily schmidt live in washington, d.c. with details. emily. >> soledad, good morning to you. yesterday in the senate, a moment of silence for the victims of newtown, a time when words weren't necessary. across the country, other responses to the shooting are beginning speak for themselves. one of them coming commercially. take a look at what's happening at dick's sporting goods. a major retailer. go to their website this morning and look for modern sporting rifles, the website will turn up a blank page. that is because dick's said it's suspending sales of that weapon nationwide. also removing all guns from its store that is closest to newtown, connecticut. out of respect it says for the victims and families affected by the newtown shootings, unclear how long that suspension will last. but certainly some lawmakers in washington are saying they want to see more permanent changes. senator dianne feinstein says there is no second amendment right to bear every type of weapon possible. she wants to see changes. >> i'm going to do an assault weapons piece of legislation and it's going to be strong, and it's going to be definitive, and it's going to ban by name at least 100 military-style semiautomatic assault weapons and it will ban big clips, drums, or strips of more than 10 bullets, and it's this particular category of weapon which the bushmaster is, it's a killer weapon. >> white house spokesman jay carney says the assault weapons ban is a complex issue requiring some plex solutions. we are hearing from the white house that the president is putting cabinet members to task on that. back to you. >> have you some polls you want to share? >> an instant spike in how people are reacting to this. cbs news asked do you want more strict or less strict gun control rules. over the weekend this number went up 18%, since the question was asked last asked in april. abc news/washington post poll taken over the past few days shows support for this legislation going up. lawmakers watching this, waiting to see if this is a quick change in sentiment or a real shift in policy debate. soledad. >> all right, emily. thank you for the update. coming up, we'll talk with west virginia senator joe manchin, a member of the nra, who says everything should be on the table when it comes to gun laws, all schools in newtown will reopen today, except sandy hook he elementary school which remains an active crime scene. students returning and families, trying to get back to a productive routine. of course, the pain is still, still deep. cnn's sandra endohas our report. >> in the wake of tragedy, a step toward normal see, for newtown kids that means going back to school. >> we also are going to be a little bit worried, because we know what we thought was a secure school had this happen to them. >> reporter: but facing fear may be the first step to overcome this tragedy. >> children have to get back to school. if we let the sort of terror in our lives anywhere in this country, we've lost. we have to get kids back to school again. >> classes resuming for 5,400 students in the district, except for those at sandy hook elementary. monday, all schools closed as teachers and administrators trained with experts on how to handle the aftermath. many parents we spoke with agree, kids belong back in school. >> i think one of the big things we have to do is have some sort of normalcy. and school is part of that. >> unfortunately, you know, we're living in this world where sometimes evil prevails sometimes. but we just are believing that good will overcome this. >> sandy hook elementary remains a crime scene. furniture and supplies were moved to chalk hill middle school in neighboring monroe, where sandy hook students will eventually resume classes. >> when children come in, whenever school is started, they walk into the classroom it, will look as close as possible to their classroom that they left. >> grief counselors and police officers will be on hand at newtown schools, and principals have asked parents to talk to their children about the tragedy before they head back into the classrooms. teachers as well will talk about what happened here on friday in an age-appropriate manner. soledad. >> just a brutal day for them today. sandra endo, thank you, sandra. different kind of fallout to tell you about in the wake of the connecticut school shooting. new developments overnight in the gun industry. christine romans has details on that. >> good morning. we're talking about the company that owns bushmaster. bushmaster firearms is the company that made the 223 caliber assault weapon that was used in the shooting. here is how the money goes. cerberus, a big private equity company. big investors. it actually put together a group of these firearms companies into something called freedom group, and one of the investors into this is the california state teachers retirement system. have you technically as indirect investors, california teachers who own about 6% of bushmaster, the company that made that firearm. today, cerberus, the private equity firm, says it's looking to sell freedom group and the maker of bush master and get out of that business. in terms of private equity, that is an unusual turn of events, a company wanting to get out of business. cerberus says it's apparent that the sandy hook tragedy is a watershed event that has raised the national debate on gun control to an unprecedented level. it is not our role to take positionsor attempt to shape or influence the gun control policy debate, there are, however, actions that we as a firm can take." they are trying to sell the company that makes the bushmaster. the california teachers retirement system, their spokesman out this morning with a statement. there are a lot of products that can be used responsibly or irresponsibly. in this case it was used irresponsibly. now that a tragic event like this has occurred, it's something we will discuss going forward. what they will discuss, whether it's appropriate for a teachers pension to be invested in a company that makes semi automatic weapons and a product that was used to kill teachers and students. soledad. >> yeah, i sympathy anybody who is investing money anywhere one would think would want to go back and examine not just weapons and not just this particular incident. what is your money in? what are you literally supporting? that's a very good question. christine romans, thanks, christine. kids in newtown go back to school, how can parents and teachers help teachers feel safe? after such a violent episode. steve perry, capital prep magnate school, will join us up next. we leave you with a tribute to some of the victims of sandy hook. the judges and contestants of "the voice." ♪ snoor smoo he said nasal congestion. yeah...i heard him. [ female announcer ] tylenol® cold multi-symptom nighttime relieves nasal congestion. nyquil® cold and flu doesn't. . children in every school here in newtown, connecticut, except for sandy hook elementary school, of course, which is still an active crime scene, all head back to school today. on a two-hour delay, which will give the teachers a little extra time to prepare for classes and on hand at every school will be grief counselors, because, of course, it is a very different world for these children heading back to than the one they left last week. steve perry, principal and president of capital prep magnate school in hartford, connecticut. about an hour's drive from here. if you were among the principals and teachers inside the location, the students from sandy hook elementary would be attending what would you be telling them? >> first thing is what i would tell my own colleagues, when children ask questions, recognize you need to keep your terms broad. we don't understand what happened, and the best thing we can do is focus on the broad, almost fantastical terms like bad things sometimes happen to good people. and in addition to that, there are now 20 moraine gels in the sky here to support you. >> what should the tone be? >> all positive. all positive. are you going to be safe. you are safe in schools. >> had has to be so hard if you are a person that survived that massacre. how do you not as a teacher look at the faces of students when you are suffering on your own? how do they do it? >> one of the first things i said to my colleagues yesterday is i want to know if you're okay. because before we leave this room, before we break this huddle and go out to take care of the children, i need to know everybody here is okay, if you are not, tap out, let somebody help you first, because the teachers have to feel good before they can go in and make the children feel good. a hard sell today. it will be a hard sell for a long time. >> should there be moments -- in my kids school, we don't live very close to here, they had meetings, and talked wi about t. should they plow on and do math and spelling? >> i don't think it's either-or. you do a couple minutes to pull together some kids and have some conversations, and listen -- listen to the flow of the kids to be honestly with you, soledad, a lot of kids have fatigue over this. it's freaking them out. they can't sleep. they would like to pump the brakes and talk about something different. they want to talk about ballet rehearsal or the play they have coming up or the basketball game. they want to talk about something different this is a bit much for them. >> a lot of conversation has moved to gun control debate and there are people who suggest that what could be helpful would be weapons inside of schools. >> absolutely absurd. suitly absurd. >> there are schools with armed guards in them. >> there are schools that have police substations in them. but that wouldn't have saved these children. the problem here is that that individual who was clearly deranged, had guns. it's not that somebody else on the inside would have had guns. you could have had navy s.e.a.l.s at the front door with arms drawn to stop him. that would be the only way. he came in with four weapons, shot his way into the school. not much you can do about that. it was a secure school. and that was the truth. he could have gotten into any building in the united states with that level of weapons. >> shehere is what governor ric perry said. >> in the state of texas with our concealed weapons laws. if you go through the process and dually ba l ly backgrounded trained, you should be able to carry your handgun anywhere in this state. >> why are you shaking your head, no, no, no? >> with all due respect to governor perry, he has to think beyond the small mindedness, i want to carry a gun for gun's sake. too many people have died. our children are frightened to go back to school because we have lawlessness, a feel in our country. so many people are afraid that somebody is carrying a gun. step back for a second. take a look at the rest of the country and realize that not everybody thinks carrying a gun is cool. some people are afraid of it. there are people in the country that are fearful in their own neighborhood because of guns. they don't make everyone feel safer. in many cases they make children feel unsafe. and that's the problem. >> dr. steve perry. always nice to have you with us. appreciate it. coming up, we'll talk with joe manchin. talked about protecting the second amendment and uses a lot of guns in his advertisement for campaigns, but now talking about changing the country's gun laws. a dramatic rescue. a reporter freed from captors in syria today. we'll update you on what happened there. live reports, up next. ♪ [ gordon ] for some this line is a convenience. how you doing today? i'm good thanks. how are you? i'm good. [ gordon ] but for others, it's all they can afford. every day nearly nine million older americans don't have enough to eat. anything else? no, not today. join me, aarp, and aarp foundation in the drive to end hunger by visiting drivetoendhunger.org. in the drive to end hunger alriwoah! did you get that? and...flip! yep, look at this. it takes like 20 pictures at a time. i never miss anything. isn't that awesome? uh that's really cool. you should upload these. i know, right? that is really amazing. the pictures are so clear. kevin's a handsome devil that phone does everything! search dog tricks. okay, see if we can teach him something cool. look at how lazy kevin is. kevin, get it together dude cmon, kevin take 20 pictures with burst shot on the galaxy s3. welcome back, everyone. a harrowing tale, a reporter and his crew held for five days in syria, now free unharmed. nbc says richard engel and his crew, safe and out of the country. nick paton walsh following this story. a dramatic series of event. >> engel's crew crossed into syria on thursday. nothing was heard. no ransom request, no contact. until they appeared to be free on monday. subsequently emerges, they were picked up, mr. engel says, by a men in ski masks. 15 of them, who leapt out of the bushes and took his team as hostages. they were moved around the country in the back of an open pickup, blind folded and bound, but otherwise not harmed. they were transferred to another location. this all happening in the north of syria. now, during that journey, they seem to have come across a group of rebels called the atar al sham brigade, who entered into a gun fight with their captors. it caused the nbc team to be free. >> no physical harm. but psychological farm. fa harm. fake executions, asking them which one of them they would like to be executed first. >> they believe that there was a reb regime to the loyalty. mr. engel has gone on to say that they may have been thugs. in context to the civil war it refers to militia loyal toward the government. he thinks they may have been held in a bid to try and exchange them for captives held by the rebels, potentially iranian agents working for the syrian regime. a complex situation which seems to have been remarkably resolved in positive fashion, of course, shows you how anarchy things are getting in syria. >> thank you so much. you and i have known richard and his cameraman for a long time. we are all relieved this morning. thank you so much. let's go back to newtown, connecticut, where soledad is. >> all right. john, thank you. and, yeah, we're all concerned about the news of richard engel. such good news for everyone. let's talk more about what's happening among gun sellers, some taking action after the newtown shooting. what dick's sporting good is doing. it will surprise a lot of people. not done before. and famously pro gun democrat. but senator joe manchin having a change of heart? his latest comments on gun legislation when we come back in a moment. at usaa, we know military life is different. we've been there. that's why every bit of financial advice we offer is geared specifically to current and former military members and their families. 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[ male announcer ] with free package pickup from the u.s. postal service the holidays are easy. visit usps.com. pay, print, and have it picked up for free before december 20h for delivery in time for the holidays. you can even give us special instructions on where to find it. free package pickup. from the u.s. postal service. because it's nice to have an extra pair of hands around for the holidays. welcome back. you're watching "starting point." special edition from newtown, connecticut. the tragedy here on friday has truly changed the conversation on gun control in this country. president obama met with members of his cabinet yesterday. ordering ideas that would include a ban on assault weapons. and there is word of a major move overnight by dick's sporting goods. 451 stores across 42 states. out of respect to the victims it has pulled its guns from the store close toast nst to newtow suspended the sale of ar-15sand guns like it across the entire chain. in this morning, children in newtown will head back to school for the first time since friday's shooting. sandy hook elementary will remain closed, it's an active crime scene. jessica rekos will be laid to rest today. 6 years old. couldn't wait for her 10th birthday, because her parents said they would buy a horse for her. dan malloy calling for a moment of silence one week after the shooting at sandy hook. the governor choking up as he told why he took it upon himself to tell the families waiting on friday morning that their loved ones weren't going to come home. >> it was evident to me that there was a reluctance to tell parents and loved ones that the person that they were waiting for was not going to return. i made the decision that to have that go on any long er was wron. >> 6-year-old noah pozner laid to rest yesterday. that's a picture of him there. his mother's name veranique posner. she read a moving eulogy to her son. it starts like this "the sky is crying, and the flags are at half mast. it's a sad, sad day. but it's also your day, notice wra, my little man. i had miss your forceful and purposeful little steps stomping through our house, the perpetual smile, the twinkle in your dark blue eyes framed by eyelashes that would be the envy of any lady in this room. she goes on and ends by saying this, i had join you some day, not today, i still have lots of mommy love to give to danielle, michael, sophia, and arielle. until then, your melody will linger in our hearts forever, mama loves you, little man. the entire eulogy, so powerful and beautiful, acan be seen in "the new york times," they have reprinted it there. as we talked about the tragedy bringing gun control laws to the forefront, we want to bring in joe manchin, conservative democrat from the state of virginia, and famously pro gun. nice to have you with us, sir. we certainly appreciate it. you have said it's now time to talk about gun control. what do you specifically mean? >> soledad, what we're talking about, i know that everybody is grieving as hard as we're grieving in west virginia, and i can only imagine the pain. i just can, as a parent and grandparent. so our hearts and prayers are with all of the families and all of the people of connecticut. newtown. i just -- i don't have words for that. and my sympathies for them with that being said, we haven't hopefully become a society or become even a governing body that we can't sit down and talk. we can't lay everything on the table to find out how do we move forward? we have challenges. i'm a big proponent of colin powell's five promises to children. second promise, every child should have a safe place in their life. sometimes it's not always the home. more than often, it's the school and it looks like even that has been taken away. it is time to sit down, time to look at a responsible, reasonable approach. mental illness, a culture of violence, sometimes accepted, even glorified and certain military style weapons that as a hunter myself, as a proud defender of the second amendment, as a proud member of the nra, we should question. and look and see if there is a better way to do this. >> would you then support legislation that would ban assault weapons. would you support legislation that would get rid of high capacity magazines? >> soledad, that all has to come to the table. if it's a responsible, reasonable manner, i think that the majority of americans would support a reasonable approach to that. i have been hunting all my life. i have ever had multiple rounds of clips of ten or more. not needed. i never gone with a military style assault rifle hunting. it's not needed. so we need to question that. we need to bring the nra in. these are all good people. they have children and grandchildren, they are hurting too. they are grieving. so we can't villainize, and if you start villainize, you will push them away and we won't move forward. what will happen is a stalemate again and that's not what we desire. >> do you worry about political backlash? you said you're a proud member of the nra, and as you know, they often fund candidates who -- and work to overthrow frankly candidates who don't support the same kinds of beliefs and legislation that they support. do you worry about backlash from constituents? >> i come from the beautiful, great state of west virginia, the most wonderful people and we sit down and work through our problems, we have challenges, we sit down. come to a conclusion with the facts and that's what we're asking for. there is always going to be i guess movement or political backlash on anything and everything. the easiest vote to take in washington is a no vote. vote for nothing. you don't have to explain. but if you are willing to move forward and for the sake of our children, soledad, we had 20 beautiful babies slaughtered. that cannot be tolerated in america. so does that bring us to the table? have we had such a toxic atmosphere, political toxic atmosphere we can't set and have a mature, intelligent decision and look at things and make sure we can protect the second amendment to the constitution, which i will as fervently as ever. i'm a proud member and will always be. but with that, i'm a responsible parent and grandparent. we need to look. how do we handle mental illness? this all knees to be talked about, in a culture of violence. how have we gotten where we are today? when you say the backlash, it's a shame in washington, i have been here two years as a u.s. senator. i have seen almost a guilt by association. people afraid to talk to other people to get a truly constructive dialog because they were afraid they would be tainted or targeted. now it's almost to the point that we're afraid to have an adult conversation. so guilt by conversation. has it gotten to that in washington? i hope not. >> governor perry said this about weapons. i want to play a little bit for you. >> in the state of texas, with our concealed handgun license if you go through the process and you have been dully backgrounded and trained and you are a concealed handgun licensed carrying individual, you should be able to carry your handgun anywhere in this state. >> do you agree with that? he is talking about texas, his state. do you think we should be able to carry a gun anywhere? >> soledad, he's talking about the laws we have in this country. the legal, law-abiding citizens. you know, we're not talking about that. we're talking can we get rick perry to sit down, a proud member of the nra, can we get people to sit down and have an adult conversation? that's what this really is about. if we can't even get them to the table, do you really think we'll have success in basically how we keep our children safer? changing the violent culture. >> let me ask you this -- >> i'm sorry. >> when you look at assault-type weapons, estimated to be somewhere between 2% to 8%, some of the numbers i've seen, involved in gun violence. so that leaves you, i think it's 80% is handguns involved in gun violence. does this open up a conversation to -- >> i think what you will see hopefully -- soledad, hopefully you will have proud members of the nra and defenders of the second amendment who says it's time to have an intelligent conversation. the military assault rifles, is that something needed in our society? it was designed for the purpose of our military and our first responders and police defending us as a nation. and those who are the discussions we should be having, along with the other things we've been talking. the mental health and violent culture. we're having a hard time getting people of different philosophical beliefs to come out and sit down. they are afraid to speak out, thinking that one side or the other might attack them. it might be politically not popular. again, i remind you, we're talking about children here. never in my life did i ever think that i would ever see, soledad, children slaughtered in america. i never -- i can't comprehend it. i was with my grandchildren this past weekend, i just can't comprehend it. my heart goes out. i'm hurting, i think all america is hurting right now. >> senator joe manchin, thank you for being with us. we appreciate it. >> thank you. >> john berman has a look at other stories making news this morning. >> 18-year-old sergio cabata in custody, accused of threatening a newtown style massacre. his facebook posts suggested he was considering a copycat rampage. a report by an independent panel that looks at the deadly attack on the consulate in benghazi libya. the report ordered by secretary of state hillary clinton, although she won't testify since she's recovering from a concussion. the attack in september, you killed four americans, including chris stevens, the ambassador to libya. a giant of the u.s. senate has died. senator daniel inouye represented hawaii from the day it became a state in 1959. he was 88. suffered from respiratory problems. shaken majority leader harry reid addressed colleagues yesterday. >> i have never known anyone like dan inouyue, no one else has. the kindness he has shown me for my time here in the senate has been something i will cherish always. >> senator inouye, second longest serving member ever behind robert byrd of west virginia. newtown high school football coach steven george never expected a response when he left a message on a white board for president obama the president visited newtown on sunday. coach george and another teacher left a note on the white board in advance, thanking him for coming. they weren't sure the commander in chief would see it, but he did. the coach's note read, dear president obama the newtown community is so thankful that are every are you coming to help us heal. in times of adversity, it is reassuring to know that we have a strong leader to help us recover. the president wrote a note back on this white board. it said simply you're in our thoughts and prayers, barack obama. he tweeted it for everyone to see. ahead on "starting point," a call for tighter gun control laws what do people directly affected think. joining me next, lori haas, whose daughter was shot and survived the virginia tech massacre. ♪ ♪ ♪ [ male announcer ] everyone deserves the gift of all day pain relief. this season, discover aleve. all day pain relief with just two pills. so as families in newtown continue to grieve, victims and survivor who's experienced past shootings are trying to offer comfort and demand change to prevent future killings like these. a group of them joined mayor bloomberg on monday to call for immediate and national action on gun control. >> this is just ridiculous. this is an outrage. we are killing each other. and we're the only industrialized country in the world doing it. >> joining me now is lori haas, mother of virginia tech shooting survivor and advocate of the coalition to stop gun violence. the first question, having lived through this yourself, when you see an event like newtown, connecticut, on friday, what's your first reaction? >> sadness and horror and shock, and, frankly, vacillating between nausea and anger on friday when we heard the news. it was -- it was difficult at best and just utmost concern for those who were involved in the tragedy and whose loved ones were killed by a gun. >> you say nausea and anger. where is the anger directed? >> frankly, at elected leaders. i find it appalling that we have allowed the gun lobby to lead the debate on policies regarding public safety. i rely on law enforcement as the guiding principal for my decisions on public safety, and i talk with them often and i have since the shooting in april 2007 where my daughter, emily, was shot. and i believe that our public safety officials in law enforcement should be leading the discussion and leegd the ad way on the policies we enact. we've learned much from them after the virginia tech shooting. we'd like them to be the lead spokesmen on the policy debate. not a gun lobby out of make money. >> you said you have been working on this every day since your daughter was shot five years ago now. more than five years ago now. >> yes. >> it's been a hard effort clearly. do you feel like people are listening? why haven't they been listening? >> a segment of the population listening. a large segment of the population listening. in polling, we have the support of not only every american out there virtually, we have the support of nra members. 3 out of 4 nra members want a background check on all gun sales. that's a clearly awareness by everyone that we need to do a better job with our gun laws in this country. when all of america 3 out of 4 nra members, 8 % 2% of gun owne want more responsible gun control laws, like a background check on all gun owners, we have the majority and leaders need to listen to us. >> mayor bloomberg, clearly frustrated. he is asking people to demand a plan. you have been part of that effort? >> yes, i have been. i am demanding a plan. i am sickened and horrified at the level of carnage in this country, that the every day gun violence, 34 americans shot by guns, that's a very tech every day and now we have the unspeakable heartache and pain of those families who lost loved ones, in particular 6 and 7-year-old children. i cannot fathom it. >> you mentioned background checks. president obama met yesterday with some of his key advisers, and tasked vice president biden in leading an effort to coup wi new gun laws. what would you like to have happen? >> i would like an assault weapons ban reinstated. the ban expired in 2004. since that time, we've had mass tragedy after mass tragedy with horrific numbers of carnage. the shooter in virginia tech to use a high-capacity magazine, 30 rounds, able to do just unspeakable numbers. we'd like stricter penalties for those who traffic in illegal guns. we have to do a better job. quick, easy fixes we can do now, literally now to start saving lives in america. >> quickly, is this a turning point? >> i do. i absolutely do. i'm convinced of it. >> thank you very much. appreciate your efforts. thanks very much. if would you like to help those affected by the shootings, you can go to cnn.com/impact. coming up next, examining why the shooter went on this rampage. research on previous mass shootings may link the brains of the killers. [ female announcer ] research suggests cell health plays a key role throughout our lives. one a day women's 50+ is a complete multivitamin designed for women's health concerns as we age. it has 7 antioxidants to support cell health. one a day 50+. well come back, everyone. you're watching a special edition of "starting point" coming from newtown, connecticut. i am adam lanza's mother, a line from a blog post that has gone viral, the author is liza long, she writes about the difficulties of having a teenage son who is mentally ill. >> sometimes for no apparent reason he will turn into this absolute raging, i don't know how to describe it. you'd have to see it to believe it. i stopped and said to myself, you know, this isn't normal. i have to face up to the fact that i have a sick son and we need help. >> reporter: liza tells cnn she loves her son but that "terrifies me." there are many questions still unanswered about the newtown school tragedy, the biggest of course is why and maybe that will never be answered. why did the suspected shooter have first graders in an elementary school in his sights? dr. sanjay gupta tells us on previous mass murderers, possible look inside the violent mind. >> reporter: first thing you notice when you look around newtown, everyone has that questioning look, why? what did we miss, if anything? no answers yet, just hindsight. to try and make some sense of the tragedy here in newtown, connecticut, medical investigators often look for evidence of patterns, not talking about looking at clothing styles or musical preferences or lifestyle but rather looking for evidence of specific plans, could get some clue as to what was happening in the person's mind and in their brain. it's hard to know, because thankfully there are relatively few tragedies like this one but a close look at ten of the most analyzed mass murder cases in history provide remarkable insight. according to this research doctors start by placing the killers into three categories, traumatized, psychotic, psychopathic. in 2005 a 16-year-old killed nine people at a school in minnesota. look into his past revealed an abused boy with an awful family history. the shooter had been previously traumatized. the virginia tech shooter killed 32 people, six were murdered in arizona and 12 lives were taken in an aurora, colorado, movie theater. in each case the killers shows signed of psychotic behavior, severe delusions and paranoia. one of the murderers of columbine was later discovered to be a textbook psychopath and he even laughed while gunning down his victims. looking back, none of them had snapped. they had all left clues, pieced together after it was too late. hindsight. we still don't know much about the shooter who lived in this home but there is something else to consider, what medications, if any, he was on, and specifically i'm talking about antidepressants. if you look at the studies on other shootings like this that have happened, medications like this were a common factor. i want to be clear, i'm not saying that antidepressants can't be effective but people seem to agree there is a vulnerable time when someone starts these medications and when someone stops could lead to increased impulsivity, decreased judgment, and making someone out of touch. none of this is an excuse and it's never one thing. none of the behaviors will fully redikt or explain why but soon again there will be hindsight that might just help prevent another tragedy. dr. sanjay gupta, cnn, newtown, connecticut. after several mass shootings in a few short shorts the newtown massacre might be the tipping point for washington to ask. arizona congressman ron barber took over gabrielle giffords' seat after the shooting. why president obama's new proposal could be the compromise republicans are looking for. that's ahead. pack the big taste of granola and dark chocolate into one perfect square, under 100 calories. nature valley granola thins. make a wish! i wish we could lie here forever. i wish this test drive was over, so we could head back to the dealership. 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'cause all our states are great. and now is when the gulf gets even better. the beaches and waters couldn't be more beautiful. take a boat ride or just lay in the sun. enjoy the wildlife and natural beauty. and don't forget our amazing seafood. so come to the gulf, you'll have a great time. especially in alabama. you mean mississippi. that's florida. say louisiana or there's no dessert. brought to you by bp and all of us who call the gulf home. this morning in our special edition of "starting point" gun control debate is now in full force as the white house considers changes and national polls show a new attitude after the newtown shooting. will this tragedy inspire lawmakers to act? here in newtown while sandy hook elementary remains closed, it is still a crime scene, all of the other students in town go back to class in a couple of hours. another child is laid to rest today. yet another sign this morning the tide may be turning over gun control. gun company stocks under fire as a big pension fund moves to strip its investments. new developments on the fiscal cliff this morning, maybe big ones. could the president's surprising new offer finally seal the deal to avoid tax hikes for most americans? it's tuesday, december 18th, and a special edition of "starting point" live from newtown, connecticut, begins right now. good morning, welcome back. you're watching a special edition of "starting point" live from newtown, connecticut, where the third of 20 murdered children will be laid to rest today. the tragedy is reigniting the debate over gun control in the country and lawmakers might be ready to take action. president obama met with senior staff and cabinet members yesterday. he wants ideas including reinstating a ban on automatic weapons.'s sporting goods has suspended the sale of ar-15 rifles and other guns like it. in fact the modern sporting rifles section of its website is blank this morning. the company says out of respect for the victims and their families, we've removed all guns in our store nearest to newtown and suspend the sale of modern sporting rifles in all of our stores chainwide." today grief counselors and police will be on hand when the children in town head back to class for the first time since friday. sandy hook elementary school is still a crime scene and it remains closed. jessica had a passion for horses, and they promised her she would get a horse when she was 10 years old. she was just 6 years old. we'll talk about arizona gun laws with arizona congressman ron barber. he took over gabby giffords seat after the shooting in tucson. at the bottom of the hour, former republican governor of oklahoma frank keating. first right to john berman with an update on other stories making news. new dramatic developments a reporter and his crew held for five days in syria now free unharmed. nbc saying its chief foreign correspondent richard engel is safe, unharmed and out of the country. moments ago he detailed his harrowing escape on nbc's "today" show. >> at the end of this we were being moved to yet another location around 11:00 last night local time and as we were moving along the road the kiz ndnapper came across a rebel checkpoint, something they didn't expect and we were in a mini van and as we were driving along the road the kidnappers saw the checkpoint, started a gunfight, two of the kidnappers were killed, we climbed out of the vehicle and the rebels took us, we spent the night with them, we didn't get much sleep. >> we are so glad they're all safe. engel says his kidnappers were government militia called the shabihat trained by iran's revolutionary guard, with hezbollah. syrian opposition fighters rescued a different turkish reporter working for nbc kidnapped last wednesday. today congress will receive a report on the attack on benghazi. the report was ordered by secretary of state hillary clinton although she will not testify. she of course is recovering from a concussion. the attack in september killed four americans including chris stevens, the u.s. ambassador to libya. negotiations may be showing signs of hope with two weeks to go. president obama presented a new proposal to house speaker john boehner. tax rates going up on incomes of people higher than $400,000. this is a change. previously he wanted taxes higher on households at $250,000. he's offering new spending cuts said to be worth about $200 billion and for his part instead of no new taxes where the speaker had been for a long time speaker john boehner is calling for tax hikes on people making more than $1 million. he has a big day today meeting with house republican members to update them on negotiations that could be a little bit of a difficult meeting for him. let's go to washington to get an update on the talks. cnn's dan lothian is there. >> reporter: hello. you're right, this could be a difficult meeting for speaker john boehner as he tries to sell this proposal to house republicans. this is a dramatic turn of events because president obama as you pointed out had been digging in his heels saying there could not be a deal unless taxes went up for house holds making more than $250,000 and now the president raising that to 400,000 so certainly some indication at least according to house republican this is is moving in the right direction. in addition the president calling for $1.2 trillion in new revenue, also $1.2 trillion in spending cuts and this meets the demand that speaker boehner had, that there had to be an equal amount of spending, and also revenue, but they still don't believe that the math really adds up here. spokesman for speaker boehner's office, brendan buck saying a proposal that includes $1.3 trillion in revenue for only $930 billion in spending cuts cannot be considered balanced. so while this is a major development here, still some disagreements. the white house at least sources pointing out the white house saying that this is not the final offer, so suggesting there could be additional compromise ahead. >> you saw criticism from the right from brendan buck, just what you were saying. president obama could face some heat from the left because he's offering concessions that could relate to some entitlement cuts when you get into the cost of living indexes, correct? >> that is correct. when the argument from democrats in the president's party on the left has been that the president has been too aggressive when it comes to spending cuts so something like this could add additional pressure to the president's side in this debate, but again, the president has moved. he's trying to reach some kind of agreement here so they can prevent that fiscal cliff from happening, as that clock winds down. it appears that both sides much closer together now but still a little ways to go. >> dan, today a big day when speaker john boehner faces the republican caucus of the house. dan lothian in washington thank you very much. he was a witness to pearl harbor, earned the congressional medal of honor, tributes pouring in for daniel inouye. he died yesterday at the age of 88, the second longest serving member ever beyond the late senator robert byrd of west virginia. former vet bob dolan said "senator inouye was one of the senate's giants. he believed in civility and compromise when necessary and he was a good, good friend." senator dole and inouye long before they were both senators were in a military hospital for almost two years together in michigan while they were both recovering from their injuries from world war ii. two great friends. soledad back to you in newtown. >> my goodness and the story of what he did, what happened when he lost his arm and how he was able to save himself in world war ii, that is an incredible story. thanks, john, appreciate it. the horror of newtown brings to mind so many other shootings, the assassination attempt on arizona congresswoman gabby give fords, january 8th of 2011 and left six people dead. among those wounded was ron barber, giffords district director. he took down when she stepped down. he won a full term last month. congressman barber thank you for being with us. >> good morning, thank you for having me on. >> it's my pleasure. what was it like to hear about this tragedy? it's not even been two years since the shooting that injured you and injured gabby giffords. does it just take you back to that day to almost two years ago? >> yes, it did, and it did for my whole family, particularly my grandchildren, who were affected then, and i think even more profoundly affected this time, knowing that children their age were killed in newtown and i just want to say that the community of tucson is just heartsick over what happened in noun. we gathered together on sunday night in a candlelight vigil to pray for and to send our best wishes to the people of newtown, our hearts are broken, as they were back in january 8th, 2011. we want them to know we are with them and we understand probably better than most communities what they're going through. >> unfortunately and sadly that is probably true. the president asked his cabinet to come up with some ideas about how they can change gun laws. you're a second amendment supporter. what kind of laws would you draft, if given the opportunity? >> i am a supporter of the second amendment. i believe it's one of those rights that we have to protect but i believe it's time for us to move in a different direction with regard to assault weapons, extended clips, magazines with incredible fire power. the young man that shot those of us in tucson last year was carrying clips that had 30 rounds in them and in a matter of almost 45 seconds he was able to unload all of those bullets and shot 19 people, six of them died. i don't believe we can continue to have those kinds of weapons available and especially in the hands of someone who is mentally ill as he was and seems like all the other shooters in the last couple years have had a diagnosis of serious mental illness. i just want to say i know from my experience in working in the field of mental health for 32 years that very few people with mental illness are violent people but some are, especially if they're not treated, so we have to do both. we have to go after the weapon power, the firepower, and we also have to make sure that we have better services for people with mental illness and supporting their families. >> going to the assault weapons, is it far enough or should you be focusing when it comes to gun legislation and gun control, should it be on the 30-round clips? should it be the assault weapons? if you look at the overall gun violence, 80% is caused by handguns or attributed to handgun violence so is that leaving out a major portion in the debate, and what is the legislation that could actually make change and would affect a lot of people? >> i think first of all we have to be realistic about what possibly can be done. i've heard over the last few days some people who are heavily supported by the nra come out saying finally we have to do something and we're going to look at legislation regarding assault weapons, military style weapons and extended clips, as i say, have lots of bullets in them that can do serious harm in a very short period of time. handgun is something else. i think i'm after a legislation, i want to see legislation enacted that takes away the availability of these kinds of weapons that can do so much harm and such a short period of time. in ten minutes, the shooting in connecticut was completed, and 26 people died, including 20 little ones. for me as a member of congress, as a person who has been through a shooting tragedy where this extended clip issue was present and as a grandfather i have to stand up and be counted on this. i'll do everything i can to make sure we limit the fire power and get services to people with mental illness. we have to do both. >> those two things are both giant and i think everyone would say the mental health part of it is completely underfunded. is it possible to make change and discuss those things together, right? often i think gun advocates will say well it's people who have mental problems we should be focusing on and there are others who say listen it's the weapons on the street we should be focusing on. is there a way to talk about both at the same time and make tangible change? >> i think we have no choice. when we look at the mass shootings since january 8th, there is two aspects of those shootings that they all have in common. someone the fire power, assault weapon, military style weapons and extended clips of magazines that carry a lot of rounds. the other is untreated and in some cases undiagnosed serious mental health issues. we need to go after both of these issues and we need to do them in tandem. ultimately i imagine they'll get separated but for me they go hand in hand and we have to do both. >> congressman ron barber joining us. nice to talk to you, sir, nice to see you. appreciate your time this morning. >> thank you very much. >> you bet. still ahead on "starting point" students in newtown are going back to school this morning. we'll tell you how the community is preparing for that coming up next in a live report. we leave you with what was a really nice tribute that we saw from the judges and the contestants of "the voice" remembering the victims of this massacre at sandy hook elementary. ♪ hallelujah ♪ i did my best, and it wasn't much ♪ ♪ i couldn't feel so i tried to touch ♪ ♪ i told the truth, i didn't have to fool you ♪ it's like being nestled in an eight-way, adjustable, heated and ventilated seat surrounded by a 500-watt sound system while floating on a suspension made of billowy clouds. or you could just hand them your keys. ♪ ♪ sfx- "sounds of african drum and flute" look who's back. again? it's embarrassing it's embarrassing! we can see you carl. we can totally see you. come on you're better than this...all that prowling 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back to school. if we let this sort of terror in our lives anywhere in this country, then we have lost. we've got to get our kids back to school again. >> reporter: classes are resuming for 35,400 students in the district except for those at sandy hook elementary. monday all schools were closed as teachers and administrators trained with experts on how to handle the aftermath. many parents we spoke with agree kids belong back in school. >> i think that one of the big things that we have to do is have some sort of normalcy, and school is part of that. >> unfortunately you know we're living in this world where sometimes evil prevails sometimes, but we're just believing that good will overcome this. >> reporter: sandy hook elementary remains a crime scene. furniture and supplies were moved to chuck hill middle school in neighboring monroe will sandy hook students will eventually resume classes. >> when the children come in, whenever the school is started they'll walk into a classroom that looks as close as possible as their classroom that they left. >> reporter: police officers will be present at newtown schools and principals have asked parents to make sure they talk to their children about what happened here before their kid goes back to school and teachers will also be talking about what happened in an age-appropriate manner. soledad? >> san da endo for us this morning, thank you. new fallout of the tragedy to talk about, and it's certain to add fuel to the gun control debate, tell you what's happening to stock in gun companies up next with christine romans. stay with us. tdd#: 1-800-345-2550 low-cost investment options-- tdd#: 1-800-345-2550 like our exchange traded funds, or etfs tdd#: 1-800-345-2550 which now have the lowest tdd#: 1-800-345-2550 operating expenses tdd#: 1-800-345-2550 in their respective tdd#: 1-800-345-2550 lipper categories. tdd#: 1-800-345-2550 lower than spdr tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and even lower than vanguard. tdd#: 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what you hear from cerberus capital they're going to sell freedom group. "it is apparent that the sandy hook tragedy was a watershed event that has raised the national debate on gun control to an unprecedent the level. it is not our role to take positions or attempt to shape or influence the gun control policy debate. there are however actions that we as a firm can take." california teachers indirectly through their retirement fund own more than 6% of bushmasters, teachers own more than 6% of bushmaster, the company that made the rifle used in that attack on the school. this say statement, "there are a lot of products that can be used responsibly or irresponsibly. in this case it was used irresponsibly. now that a tragic event like this has occurred i'm sure it is something that we will be discussing going forward." on friday when this was unfolding i googled bushmaster 223, the first response was to walmart saying i to go to the carney, new jersey, store, to get it. you couldn't get it on line. it says it aims straight and true. today you cannot see the advertisement on walmart.com. walmart says the gun is still available in select stores, it's not advertising it online.'s sporting goods suspend selling weapons like this for now and closed, no more guns at dick's sporting goods closest to newtown, connecticut. >> it's interesting with cerberus, they're a private equity firm, their business is to make money and they've decided it's bad business to be in the gun business. >> they've hired somebody to help them sell the company. this say big, important private equity firm and private means private, they buy stuff for profit not meant to, they try to take this company public a couple years ago and then decided not to, put together with this company ten others to make a whole freedom group, a whole guns and ammunition business trying to get out of that business. >> christine romans thank you very much. ahead we'll discuss how gun policy will move forward with former oklahoma governor frank keating, a member of the nra. he guided his state through the oklahoma city bombing where 19 children were killed. is president obama's new proposal on the fiscal cliff the deal republicans were looking for? just how close are we now to avoiding those massive across the board tax hikes and mammoth spending cuts? we'll talk about that coming up next. all waking up. ♪ becoming part of the global phenomenon we call the internet of everything. ♪ trees will talk to networks will talk to scientists about climate change. cars will talk to road sensors will talk to stoplights about traffic efficiency. the ambulance will talk to patient records will talk to doctors about saving lives. it's going to be amazing. and exciting. and maybe, most remarkably, not that far away. the next big thing? we're going to wake the world up. ♪ and watch, with eyes wide, as it gets to work. ♪ cisco. tomorrow starts here. a body at rest tends to stay at rest... while a body in motion tends to stay in motion. staying active can actually ease arthritis symptoms. but 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head back to school after the friday shooting. sandy hook will remain closed. 6-year-old jessica rekos, one of 20 children killed on friday will be buried today. when you have a tragedy of this magnitude you cannot help but recall other tragedies of the past, senseless acts that claimed innocent lives in the country. oklahoma city bombing in 1995, the bombing of a federal building downtown killed 168 people, and 19 of them were children. frank keating was the governor of oklahoma when that happened and governor keating joins thus morning. nice to have you with us, sir. we appreciate it. >> good morning, soledad. >> i have to imagine -- good morning to you, sir -- when you're inside a franlg diof this magnitude, it's hard to imagine that you're ever going to be able to get out of it. is that how you felt when everyone was mired in the aftermath of the oklahoma city bombing? >> soledad, it's an instant cataclysm for the families and for the first responders, but the climb out is long, and it's searing and it's very difficult. today, 17 years after the oklahoma city bombing with private funds we are still putting children through college, providing counseling, first responders, firefighters and police officers and even providing medical care for a number of the badly injured. so the one thing about newtown, it is a community so stitching together, holding hands together, understanding your neighbor is really your neighbor, if not a family member. this is going to be a long time crawling out, scratching yourself out, because it's going to be searing. we've had suicides just a lot of agony after the oklahoma city bombing and i'm afraid that the tragedy in newtown is not going to be december. it's going to take a long time to recover. >> it sounds so brutal. you mentioned the first responders, and i remember seeing when the president came to the interfaith vigil, the first responders everyone came in walked and cheered and patted them on the back. they're often forgotten in the story, people remember them as heroes but we don't think about their mental health and how brutally difficult it must have been for them to go inside that school and see the massacre of small children, many of those responders, parents themselves. >> that's the point because right now i saw the university of connecticut putting together a scholarship fund, surely there are private checks arriving, private transmissions or transfers of money. i think it's important that a community foundation or perhaps the united way initially put together a plan for how do we address these problems. some people need long-term counseling. the first responders particularly people need to be sensitive to those absolutely stunning, searing, shocking, unforgettable moments of those wonderful little children so people need to sit around the table together, work it out, but realize they're going to be in this business for a long time, unfortunately, tragically they have to work through it for a long time. >> so what do you think happens next? all morning we've been reporting about the new focus on gun control, there is a support if you look at the polls much higher, 14 points highers before this massacre. what do you think happens in that conversation on gun control? what change do you think should happen? >> well i'm a hunter. i've been a hunter my whole life. i had my first shotgun when i was 11, my first job was in a skeet field. i think this debate, this conversation needs to take place. should people be able to access to purchase semiautomatic weapons with these clips, these magazines that provide for basically unlimited fire power? that needs to be debated and discussed. we did it once. i think we should do it again to ban those assault weapons, but also you have to discuss mental health, privacy issues, you have to discuss quite truthfully the easy divorce process, even with children, marriages are -- more than 60% end in divorce. video violence, movie violence, television violence, all of this should be on the table, round table community resolution, national resolution so we can make sure this is an aberration but as a child we had cap guns, we went hunting after school but none of us sleightered o ee eee slaughtered our classmates. there's something evil in the hearts and minds of some people. that all needs to be addressed. >> there's a state rep. in your state, mark mccullough, and he will introduce a bill which would allow certified teachers and principals to carry guns in the school. here's what he wrote, "we cannot continue to be shackled by politically recorrect, reflexive, anti-gun sentiment in the face of the obvious. our schools are soft targets. it's incredibly irresponsible to leave our schools undefended to allow madmen to kill dozens of innocents when we have a very simple available to us to prevent it and by that solution he means arming some of the teachers and the principals. do you think that's a good idea in your state, which is where he's proposing it in. >> soledad i was the architect really of the first concealed carry law in the united states but we required a mental health history, criminal background investigation and a 15-week course before somebody could have a concealed carry permit. that's an example where perhaps a former law enforcement person, even a teacher who happens to have a conceal carry permit in my state could satisfy the needs of security in that school. i would hope we would attack the whole universe of problems and violent videos, violent movies, insensitivity and desensitivity toward the precious life rights of every human being, those are things that need to be discussed as well, whether oklahoma passes this bill or not is oklahoma's business but the conceal carry law was prudently handled and our violent crime rate has gone down. >> you know what's interesting in new york city not long ago we had a disgruntled employee who shot a co-worker and then it happened not very far from where i live and when the police opened fire it turned out that eight other people were injured in the cross-fire frankly and some of the fragments and things like that. when you talk to police officers the idea of having people armed especially inside of a school is more concerning to them than feeling that it would help them in what they do. not everybody, but a lot. >> i think soledad, quite truthfully, it would depend, versus urban, big city versus small towns. in the case of the new york incident, as an ex-fbi agent i thought it looks to me these guys were trigger happy. you had a lot of shooting going on with a lot of people around which was not handled well. >> that is an interesting point because they're trained, right? to be a police officer in the city of new york requires such incredible training on weapons i guess i'd worry people who are not trained like they are you know and we see so many people injured out of that incident, i guess i extrapolate out of that, that's very worrisome. >> that's why conceal carry or open carry law in any state needs to have not only mental health history and criminal background but also extensive training to avoid the situation you're referring to. if that person is a constable make sure he or she is well trained. >> let me ask you a last final question, the people in oklahoma city i know did not want to be defined pi a tragedy and we heard from people the same thing in newtown, nobody wants to be defined by the worst thing that ever happens in their community. do you think that oklahoma city has avoided that? do you think that's possible for newtown? >> well initially that was examine ktly how oklahoma city was described but there was a renaissance moment, or renaissance years ago. the fact that oklahoma city showed itself to be so caring seen sharing, putting together these funds to put every child, 170 children lost one parent. every child who wanted to go to college went to college. the fact there was no looting and over 300 buildings damaged or destroyed, oklahoma city was proud of the way to the way they responded to the evil tragedy, from the oklahoma city thunder basketball game, the nba franchise to all sorts of redevelopment. it's the sense of pride. i'm not saying always good things come from bad things. sometimes good from evil and in oklahoma city's case the community felt better about themselves. they'll never bling back the wonderful people who should not have been injured or killed. >> maybe good people always come to the surface on that. frank kaeter, former oklahoma governor. thank you for being with us. >> great to see you. john berman has a look at other stories making news. >> a developing story in washington, significant movement to avert the fiscal cliff. president obama presented a new proposal to house speaker john boehner, under this revised plan tax rates would go up on incomes higher than $400,000. previously he wanted higher taxes on house holds starting at $250,000. the offer offers new spending cuts worth $100 billion. speaker bainer is calling for tax hikes on people making $1 million or more, a change for him, too. today he meets with republican house members to update them on negotiations, that could be a difficult meeting for him. i go to dana bash, senior congressional cor spendent. yesterday we were talking about the meeting wondering what went on inside. what seemed to be going on was progress. >> the white house offering out a deal late out in part. it's important to note where the movement has been and where we are now, $1.2 trillion in tax revenue toward deficit reduction, down from what the president offered $1.6 trillion. the white house is now offering to move on his position on tax rates for the wealthy from incomes of families making too,000 to $400,000. that is very significant because democrats i've talked to all along said maybe they'd move on the percentage of increases but maybe not the incomes. spending cuts the democrats have moved up as well. the debt limit, john, something that republicans have been dug in on saying they want to keep this potential leverage or february when the u.s. is going to bump up against this debt limit and the democrats have said no, we want to take this off the table. dough we don't want another naufr two months. there is going to be very interesting meeting that starts in about 20 minutes, i'll head over there and see what reaction, response house republicans are going to have to this. so far the speaker has been able to keep his folks in line because they've been aggravated the president's not given. we'll see if he still has all of his tloopz behind him. >> the $250,000 number for taxes has been part of president owe pa ma's rhetoric since he campaigned in it007. the speaker does go into that meeting with republicans with maybe an argument that he has gotten the president to move. >> he sure does but for republicans, for them to politically be able to swallow any deal they've got to argue to their folks back home they were able to extract more on spending cuts from the president. it looks like $930 billion in spending cuts and a discrepancy over what the numbers really are so that's the squabble over the next 24 hours. hopefully less. >> dey ta bash, thank you very much. other stories, director for national intelligence for the united states is staying on the job. the president asked james clapper to stay on the job. he's taken a lot of heat and criticism for the response to the september 11th attack on the u.s. mission in benghazi. doctors expect president george h.w. bush to be home from illness. at 88 years old he's the loadest living former president. martin scorsese will cover a film on bill clinton. he's cooperating. i'm sure he's loving every bit of that. back to soledad in newtown. >> if marty scorsese wants to do a film on you, he does it. ahead this morning we'll talk to pasty t.d. jakes about how newtown connecticut might be able to heal. that's coming up next. this holiday, share everything. share "not even close." share "you owe me..." share "just right." the share everything plan. shareable data across 10 devices with unlimited talk and text. hurry in for a droid razr m by motorola for $49.99. a tragedy of the magnitude of the deadly shootings at sandy hook elementary school in newtown, connecticut, can shake the faith of the firmest believer. t.d. jakes has a congregation of 30,000 members. >> thank you. >> i was reading the eulogy that the mother of 6-year-old noah pozner wrote and she delivered it at his funeral yesterday and it just broke my heart and i think how do you counsel parents who have to deliver eulogies for a 6-year-old or 7-year-old? what words do you possibly use? >> you don't want to think we have to remember about greece they are not a monolithing society. for some people that would be totally impossible to utter a word or a sound. for other people it's cathartic to open up and express their love and devotion and to have the final words over someone they love. i try very much as a pastor not to among their relationships and emotions and how they use to commemorate the person they leaply will have. >> as a reporter i like to get as many information as you can. i want to know every detail about everything and that's a way of processing it, managing it. people must ask you questions you cannot answer. and they say where was god when this happened? >> it's precisely as you is asaid i've tried to avoid answers goesable temporary. there are some things that are handeds now life that we do not know or understand. these areas, ambiguous areas where we don't have a deficit answer it's better not to give any answer at all than to give one inappropriate. that's why we have faith for those things we cannot explain and point to directly, we have to frtrust god and lean on him get through the sufficient times in life. >> there was a little girl emilies who father came out to reporters. he said i'm not angry. we've bin and talked about forgiveness it's for yourself not for the other person in a lot of ways. do you think people are ever going to be able to get to that not just here in this massacre? i don't see it happening honestly. >> well i think different people again respond differently but one of the things we have to keep in nind is that we don't know that much about the traitor yet. as you unfoenl that mystery that are not on medication but they have problems in their lives, that i emotional capacities and reasonings, sometimes under ex-ten situating services people are able to forgive and others not so readily. today is not the day to embark upon a huge mission. today is the way to honor the victims slain to process, to commemorate them, to take out pictures to hug, hold hands, bring around the people you feel secure with and reaffirm your circle of love because if we do that as a society from that place of emotional stability, then we can embark on theard use task of sorting out how we really feel about what happened and then planning a new what i call a new normal because the only normal is gone. you will never be able to get that back again and it's very important you redekind the new normal, new traditions in the family, no ways of expressing the family and that is a huge task you spend many, many years trying to do. >> pastor we'll ask to you stick around through this commercial break so we can have more conversation with you about this straight ahead. back in a moment. >> thank you. it really 100 cal? let me put you on webcan... ...lean roasted chicken... and a creamy broth mmm i can still see you. to the number 1 club in the world. the potential of manchester united unlocked. nyse euronext. unlocking the world's potential. bishop jakes, i have time for one last question as we talk about newtown, remembering. your church does a lot of outreach into the community and sometimes i think as americans we're conflicted about mental health. we think people definitely should be getting treatment. we don't necessarily vote to pay for it. we turn away from people i think who often have mental health issues because we don't want to get in people's business. what should we be doing for not in this case, we don't know enough about the shooter but in general what would you advise people to be doing for their fellow brothers and sisters. >> i'm so glad you asked me the question. i think it's important we press on congress to provide resources so people who need mental health can get the appropriate treatment that we need. i caution people that you don't have to have a fre existing mental condition to implode emotionally through stress. we have to age old biblical question am i my brother's keeper, the answer is yes. we have to be aware who we work with, the people across the fence in our neighborhood, see how they are coping particularly when there's check crisis, you don't have to have a history of emotional disorder. we have to encourage them to get the help. >> bishop t.d. jakes nice to talk to you. appreciate it. >> always. cnn's coverage live from newtown, connecticut, continues right after this. nature valls pack the big taste of granola and dark chocolate into one perfect square, under 100 calories. nature valley granola thins. why they have a raise your rate cd.. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor sargent, can you tell me what cd rates will be in two years? no. if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally.
LouisianaUnited-statesAlabamaTurkeyMinnesotaCaliforniaSyriaWashingtonDistrict-of-columbiaConnecticutWest-virginiaArizona grown-ups grappled with how to get on with life and protect the survivors from even more nightmares. here's abc's juju chang. >> reporter: the hugs were a little tighter today as parents in newtown gently guided their kids back to school, back to their daily routines, surrounded by sadness and a stepped up police presence. >> getting them back to a routine is the best thing, i think. >> reporter: but the jittery town suffered a fresh scare as a threat shut down yet another newtown elementary school. >> better safe than sorry. >> reporter: but for karen dreyer's son logan, a sandy hook kindergartener, normal is still a long way off. she told abc's dan harris they're still in limbo as they await word on when classes resume. >> they wanted to go back to school. they wanted to be with their teachers. their teachers wanted to see them. >> reporter: the children, she says, are resilient but some parents were only pretending to be. >> it's scary, but i'm going to put on a brave face. we're going to march up to the door, say hello to his teacher and i'll walk away and then cry. it's just all so surreal. i'm sorry. i just can't -- it's all just a nightmare. >> reporter: and the nightmare continues to play out at st. rose of lima church with back-to-back funerals for two 6-year-olds. james mattioli loved doing yard work with his dad and cuddling up on the couch with his mom. christa rekos says she still can't believe her daughter jessica, who loved horses and was about the get cowgirl boots for christmas, isn't coming home. mourners at her funeral paid tribute. >> she was teaching her brother how to read and everything. just a very giving child. was just a very, very nice ceremony. >> reporter: 27-year-old victoria soto was remembered today for her heroism, for hiding students in closets, then trying to shield them from a hail of bullets. >> vicky died a hero, she was protecting her children, which she loved very much. she didn't call them her students. she called them her kids. >> reporter: today her fellow teachers were still looking out for their students, preparing for the eventual return to class. moving trucks passed the memorials that lined the roads here, hauling furniture and just about everything else from sandy hook elementary school to their new campus. officials are working overtime here at chuck hill middle school in nearby monroe, connecticut. inside, teachers and officials are working around the clock to recreate sandy hook elementary room by room with painstaking detail. using photos taken inside the school, they're creating a carbon copy of each classroom from what was on the walls, right down to the crayon left in the desk. exactly as it was friday when the school day was savagely cut short. but what if creating that exact environment only triggers the trauma again? >> it might for some kids. it might be a bit wedge. >> reporter: dr. jamie howard is a child psychologist who specializes in post traumatic stress. >> we do try to expose kids to triggers of the trauma because avoiding triggers or avoiding things that remind kids of trauma, and grown-ups, too, just serves to maintain the anxiety. >> reporter: they're ripping out toilets designed for middle schoolers and installing new bathrooms better suited for grade schoolers, hoping to reopen after winter break. why are they in such a hurry? >> it's really important to maintain routines as quickly as possible. that's actually very comforting and very reassuring to kids. >> reporter: there are no rules on how to return a school to normal after such a heinous act. in kentucky, where three students were killed 15 years ago, heath high school opened the very next day. >> this rally represents a new beginning for columbine high school. >> reporter: columbine took four months to reopen after 12 people were gunned down and ten were injured. they demolished the library and replaced it with a sunny atrium. after a gunman killed 32 people at virginia tech, parts of campus went through extensive renovations and gradually reopened. but sandy hook is unprecedented, because the victims were so young. >> they make sense of things differently. they might be more clingy. they might regress more, so they might start sucking their thumb, for example. >> reporter: the new campus is being outfitted with a new security system. officials promised it will be the safest school in america. a pledge parents the use to reassure their children and themselves. for "nightline," i'm juju chang in newtown, connecticut. coming up next, from selling off shares to stripping shelves, how this tragedy is changing the game, at least for now, for those who make, sell, and invest in the booming business of guns. [ male announcer ] red lobster's crabfest ends soon. hurry in and try five succulent entrees, like our tender snow crab paired with savory garlic shrimp. just $12.99. come into red lobster and sea food differently. and introducing 7 lunch choices for just $7.99. salads, sandwiches, and more. impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. [ male announcer ] every time you say no to a cigarette you celebrate a little win. nicorette gum helps calm your cravings and makes you less irritable. quit one cigarette at a time. this special edition of "nightline" continues from new york city with bill weir. >> not columbine, nor virginia tech, nor the gaby giffords shooting that took six lives in tuscan had much effect on the gun debate if this country. but there is nothing like the slaughter of 20 first graders to help people focus on an issue. many on both sides of the second amendment debate wonder tonight if this one is big enough to actually change the big business of guns in this country long-term. darren rovell found some interesting early indications. >> reporter: at a gun store in san gabriel, california, just outside of los angeles, business was brisk today. customers buying guns and ammunition, making sure they can get what they want now. the u.s. firearms industry is breaking all kinds of sales records. now more than a $30 billion business with so many different people buying guns, that it's impossible to profile the typical gun owner. >> i need your signature. >> reporter: people like this stay-at-home mom. >> this is the first gun i have ever purchased. i never thought i would be purchasing one, but my husband does have one. >> reporter: edgar hernandez was just out window shopping. >> i came in to look for a new long gun for my collection. >> reporter: pete has owned this store for 30 years. >> there's more and more first-time gun buyers than i can ever remember. people who 20 years ago would have never dreamed of owning a firearm. >> there you go. ready to rock 'n' roll. >> reporter: in the wake of the massacre at newtown, the people willing to consider putting their hand on the trigger has risen. >> the media and the government are talking about more gun legislation, so therefore, they're deciding well, perhaps i should take action now. >> reporter: despite the cash registers ringing, it's not an easy time to be in the gun business. walmart, the nation's largest seller of guns and ammunition, has pulled their version of the bushmaster semiautomatic rifle similar to the one used in the shooting off its website. outdoor retailer cabella's has decided not to carry the gun used in the shooting in its one store in connecticut. while dick's sporting goods is taking it a step further. company temporarily suspending a whole category of modern sporting rifles at its more than 500 stores in 44 states nationwide. many public companies are torn between showing sensitivity towards what happened in newtown and trying to make a profit. what do you feel like the responsibility is for the companies, their fiduciary responsibility versus being sensitive? >> the sandy hook tragedy profoundly affected a large number of americans, so i think they're going to tread lightly and do their best to challenge both of those obligations. their obligation to be respectful to the victims and also their desire to make as much money as possible. >> reporter: despite the jump in sales, investors haven't felt positive about making a stake in the gun owners themselves, who continue to get pounded on wall street today. shares of smith and wesson dropped 10% today. the stock has dropped 20% since friday morning. another gun company, sturm ruger down nearly 18% since friday. when the california state teachers retirement system, the largest educator pension fund in the realize it invested in bushmaster, the gunman's rifle brand -- >> we were frankly horrified to learn on monday morning that within our investment portfolio we owned a company, or a slice of a company that manufactured one of the weapons that were used. >> reporter: after the teachers threatened to pull its sizable investment altogether, that firm announced today it would sell its gun business. they are saying it was a financial decision. as a firm, we are investors, not statesmen or policymakers. our role is to make investments on behalf of our clients. the company said in a statement. back at the gun shop in california, pete shows off a version of the ar-15 rifle he has in stock. similar to the weapon that was used in the connecticut shootings. he is unapologetic. >> the second amendment isn't about hunting guns. it isn't about target shooting. the second amendment is about the power of the people to protect themselves from a government that has become oppressive. >> reporter: politics versus profits. how that's resolved will determine what will be sold in the future. for "nightline," i'm darren rovell in new york. another question raging these days, could a virtual shooting spree in a game like "call of duty" create a craving for the real thing? we'll look at the science next. 'cause all our states are great. and now is when the gulf gets even better. the beaches and waters couldn't be more beautiful. take a boat ride or just lay in the sun. enjoy the wildlife and natural beauty. and don't forget our amazing seafood. so come to the gulf, you'll have a great time. especially in alabama. you mean mississippi. that's florida. say louisiana or there's no dessert. brought to you by bp and all of us who call the gulf home. excuse me, sir i'm gonna have to ask you to power down your little word game. i think your friends will understand. oh no, it's actually my geico app...see? ...i just uh paid my bill. did you really? from the plane? yeah, i can manage my policy, get roadside assistance, pretty much access geico 24/7. sounds a little too good to be true sir. i'll believe that when pigs fly. ok, did she seriously just say that? geico. just click away with our free mobile app. all of us here at abc news have devoted this week to hearing from you, addressing your questions, searching for solutions, as we mourn newtown as a nation. across more than a few of our message boards, we've seen more than a few people raise concern over violent video games and the cultural effect of having so many young men living virtual lives as first person shooters. tonight abc takes a look. >> reporter: across the country this week, america's love affair with violence is under the microscope. two of hollywood's hottest new releases, both shoot 'em ups, "jack reacher" and "django unchained" cancelled premieres out of respect. "hitman" led david axelrod to tweet, shouldn't we also quit marketing murder as a game? while the adults were asking questions, america's kids went on their daily shooting spree. it is virtual violence. in this case, playing one of the most popular, profitable and most violent games, "call of duty," a so called first person shooter, because the player t e takes on a killer's point of view. but is this just good fun or is an entire generation being trained and desensitized to the act of shooting people? thomas and steven are typical of many in their generation. good jobs by day, obsessed with "call of duty" when they get home. dr. chris ferguson has conducted a series of multi-year studies of 11 to 18-year-olds to find out what violent games do to them. his conclusion -- >> there's no evidence to suggest that exposure to violent video games is associated with violent criminal behavior. >> reporter: he has a name for the outcry over violent games that sometimes follows a mass shooting. he calls it moral panic. >> whenever a new form of media that comes out that particularly older generations don't use and don't understand is very, very common for that new medium to be blamed for a variety of social ills. >> reporter: in the 1950s, it was comic books and a full senate hearing over the belief that they were making america's kids turn violent. >> what are we afraid of? are we afraid of our own children? do we forget that they are citizens too? and entitled to the essential freedom to read? or do we think our children so evil, so vicious, so simple minded that it takes but a comic magazine story of murder to set them to murder. >> reporter: by the 1980s, it was tipper gore over the issue of suggestive rock lyrics. ♪ we're not gonna take it ♪ >> why do you think there is so much to sadomasochism and bondage in these songs? >> ms. gore was looking for sadomasochism and she found it. >> reporter: he supports this american academy of pediatrics finding. the received is now clear and convincing. media violence is one of the causal factors of real life violence and aggression. >> kids spend an incredible amount of time with the media, seven to 11 hours a day. they see increasingly violent media. we all acknowledge that the media have an impact. why in this country would we spend $250 billion a year on advertising if we didn't think advertising affected people. >> so whose research to believe? who to judge? the u.s. supreme court already has. in striking down california's attempt at a violent video game law, the court had this to say about studies linking games to violent behavior. these studies have been rejected by every court to consider them, and with good reason: they do not prove that violent video games cause minors to act aggressively. bonnie ross, a mother of two young children with her own concerns, also happens to run one of the most successful first person shooter games around -- "halo 4." while it's far more tame than the violent games many point fingers at, ross's advice is the same. what do you say to parents who say it's too violent, not good for kids? >> what i recommend is your kids are going to play games. play it with them so that you can really be there to answer questions and help them through that, and then you have to make a decision as a parent what's right for you. >> reporter: games, movies, music, comics. easy targets amidst a moral panic. >> as a society, if we focus in on the wrong issue, focus in on something that is a red herring, that is not going to help anybody, that can really distract the national conversation from serious issues. and thank you for watching abc news tonight. we do hope you check in with our friends at "good morning america," bringing you the world while you rest and we're always online at abcnews.com. we have some great ways to help out the folks in newtown. we'll see you tomorrow. >> dicky: up next on an all-new "jimmy kimmel live." >> i think maybe you're known for cursing. >> i've heard that. >> more than anyone else. >> why is that? >> because you curse all the time. >> dicky: the cast of "jersey shore." >> this feels like a graduation of kids who never actually went to school. >> dicky: and unnecessary censorship. >> i promise
New-yorkUnited-statesLouisianaAlabamaKentuckyChinaFloridaCaliforniaVirginiaNew-zealandMississippiConnecticut from the global resources of abc news, with terry moran, cynthia mcfadden, and bill weir in new york city, this is a special edition of "nightline," tragedy at sandy hook, the search for solutions. good evening. i'm bill weir. out of all the soul-crushing images to come out of newtown, this one has a particularly devastating effect on countless folks checking their twitter and facebook feeds today. it's a letter to little jack pinto laid to rest on monday that reads, you're my best friend. we had fun together. i will miss you. i will talk to you in my prayers. i love you. signed john. two more 6-year-olds were buried today while buses rolled and grown-ups grappled with how to get on with life and protect the survivors from even more nightmares. here's abc's juju chang. >> reporter: the hugs were a little tighter today as parents in newtown gently guided their kids back to school, back to their daily routines, surrounded by sadness and a stepped up police presence. >> getting them back to a routine is the best thing, i think. >> reporter: but the jittery town suffered a fresh scare as a threat shut down yet another newtown elementary school. >> better safe than sorry. >> reporter: but for karen dreyer's son logan, a sandy hook kindergartener, normal is still a long way off. she told abc's dan harris they're still in limbo as they await word on when classes resume. >> they wanted to go back to school. they wanted to be with their teachers. their teachers wanted to see them. >> reporter: the children, she says, are resilient but some parents were only pretending to be. >> it's scary, but i'm going to put on a brave face. we're going to march up to the door, say hello to his teacher and i'll walk away and then cry. it's just all so surreal. i'm sorry. i just can't -- it's all just a nightmare. >> reporter: and the nightmare continues to play out at st. rose of lima church with back-to-back funerals for two 6-year-olds. james mattioli loved doing yard work with his dad and cuddling up on the couch with his mom. christa rekos says she still can't believe her daughter jessica, who loved horses and was about the get cowgirl boots for christmas, isn't coming home. mourners at her funeral paid tribute. >> she was teaching her brother how to read and everything. just a very giving child. was just a very, very nice ceremony. >> reporter: 27-year-old victoria soto was remembered today for her heroism, for hiding students in closets, then trying to shield them from a hail of bullets. >> vicky died a hero, she was protecting her children, which she loved very much. she didn't call them her students. she called them her kids. >> reporter: today her fellow teachers were still looking out for their students, preparing for the eventual return to class. moving trucks passed the memorials that lined the roads here, hauling furniture and just about everything else from sandy hook elementary school to their new campus. officials are working overtime here at chuck hill middle school in nearby monroe, connecticut. inside, teachers and officials are working around the clock to recreate sandy hook elementary room by room with painstaking detail. using photos taken inside the school, they're creating a carbon copy of each classroom from what was on the walls, right down to the crayon left in the desk. exactly as it was friday when the school day was savagely cut short. but what if creating that exact environment only triggers the trauma again? >> it might for some kids. it might be a bit wedge. >> reporter: dr. jamie howard is a child psychologist who specializes in post traumatic stress. >> we do try to expose kids to triggers of the trauma because avoiding triggers or avoiding things that remind kids of trauma, and grown-ups, too, just serves to maintain the anxiety. >> reporter: they're ripping out toilets designed for middle schoolers and installing new bathrooms better suited for grade schoolers, hoping to reopen after winter break. why are they in such a hurry? >> it's really important to maintain routines as quickly as possible. that's actually very comforting and very reassuring to kids. >> reporter: there are no rules on how to return a school to normal after such a heinous act. in kentucky, where three students were killed 15 years ago, heath high school opened the very next day. >> this rally represents a new beginning for columbine high school. >> reporter: columbine took four months to reopen after 12 people were gunned down and ten were injured. they demolished the library and replaced it with a sunny atrium. after a gunman killed 32 people at virginia tech, parts of campus went through extensive renovations and gradually reopened. but sandy hook is unprecedented, because the victims were so young. >> they make sense of things differently. they might be more clingy. they might regress more, so they might start sucking their thumb, for example. >> reporter: the new campus is being outfitted with a new security system. officials promised it will be the safest school in america. a pledge parents the use to reassure their children and themselves. for "nightline," i'm juju chang in newtown, connecticut. coming up next, from selling off shares to stripping shelves, how this tragedy is changing the game, at least for now, for those who make, sell, and invest in the booming business of guns. [ male announcer ] red lobster's crabfest ends soon. hurry in and try five succulent entrees, like our tender snow crab paired with savory garlic shrimp. just $12.99. come into red lobster and sea food differently. and introducing 7 lunch choices for just $7.99. salads, sandwiches, and more. impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. [ male announcer ] every time you say no to a cigarette you celebrate a little win. nicorette gum helps calm your cravings and makes you less irritable. quit one cigarette at a time. this special edition of "nightline" continues from new york city with bill weir. >> not columbine, nor virginia tech, nor the gaby giffords shooting that took six lives in tuscan had much effect on the gun debate if this country. but there is nothing like the slaughter of 20 first graders to help people focus on an issue. many on both sides of the second amendment debate wonder tonight if this one is big enough to actually change the big business of guns in this country long-term. darren rovell found some interesting early indications. >> reporter: at a gun store in san gabriel, california, just outside of los angeles, business was brisk today. customers buying guns and ammunition, making sure they can get what they want now. the u.s. firearms industry is breaking all kinds of sales records. now more than a $30 billion business with so many different people buying guns, that it's impossible to profile the typical gun owner. >> i need your signature. >> reporter: people like this stay-at-home mom. >> this is the first gun i have ever purchased. i never thought i would be purchasing one, but my husband does have one. >> reporter: edgar hernandez was just out window shopping. >> i came in to look for a new long gun for my collection. >> reporter: pete has owned this store for 30 years. >> there's more and more first-time gun buyers than i can ever remember. people who 20 years ago would have never dreamed of owning a firearm. >> there you go. ready to rock 'n' roll. >> reporter: in the wake of the massacre at newtown, the people willing to consider putting their hand on the trigger has risen. >> the media and the government are talking about more gun legislation, so therefore, they're deciding well, perhaps i should take action now. >> reporter: despite the cash registers ringing, it's not an easy time to be in the gun business. walmart, the nation's largest seller of guns and ammunition, has pulled their version of the bushmaster semiautomatic rifle similar to the one used in the shooting off its website. outdoor retailer cabella's hasc used in the shooting in its one store in connecticut. while dick's sporting goods is taking it a step further. company temporarily suspending a whole category of modern sporting rifles at its more than 500 stores in 44 states nationwide. many public companies are torn between showing sensitivity towards what happened in newtown and trying to make a profit. what do you feel like the responsibility is for the companies, their fiduciary responsibility versus being sensitive? >> the sandy hook tragedy profoundly affected a large number of americans, so i think they're going to tread lightly and do their best to challenge both of those obligations. their obligation to be respectful to the victims and also their desire to make as much money as possible. >> reporter: despite the jump in sales, investors haven't felt positive about making a stake in the gun owners themselves, who continue to get pounded on wall street today. shares of smith and wesson dropped 10% today. the stock has dropped 20% since friday morning. another gun company, sturm ruger down nearly 18% since friday. when the california state teachers retirement system, the largest educator pension fund in the realize it invested in bushmaster, the gunman's rifle brand -- >> we were frankly horrified to learn on monday morning that within our investment portfolio we owned a company, or a slice of a company that manufactured one of the weapons that were used. >> reporter: after the teachers threatened to pull its sizable investment altogether, that firm announced today it would sell its gun business. they are saying it was a financial decision. as a firm, we are investors, not statesmen or policymakers. our role is to make investments on behalf of our clients. the company said in a statement. back at the gun shop in california, pete shows off a version of the ar-15 rifle he has in stock. similar to the weapon that was used in the connecticut shootings. he is unapologetic. >> the second amendment isn't about hunting guns. it isn't about target shooting. the second amendment is about the power of the people to protect themselves from a government that has become oppressive. >> reporter: politics versus profits. how that's resolved will determine what will be sold in the future. for "nightline," i'm darren rovell in new york. another question raging these days, could a virtual shooting spree in a game like "call of duty" create a craving for the real thing? we'll look at the science next. 'cause all our states are great. and now is when the gulf gets even better. the beaches and waters couldn't be more beautiful. take a boat ride or just lay in the sun. enjoy the wildlife and natural beauty. and don't forget our amazing seafood. so come to the gulf, you'll have a great time. especially in alabama. you mean mississippi. that's florida. say louisiana or there's no dessert. brought to you by bp and all of us who call the gulf home. excuse me, sir i'm gonna have to ask you to power down your little word game. i think your friends will understand. oh no, it's actually my geico app...see? ...i just uh paid my bill. did you really? from the plane? yeah, i can manage my policy, get roadside assistance, pretty much access geico 24/7. sounds a little too good to be true sir. i'll believe that when pigs fly. ok, did she seriously just say that? geico. just click away with our free mobile app. all of us here at abc news have devoted this week to hearing from you, addressing your questions, searching for solutions, as we mourn newtown as a nation. across more than a few of our message boards, we've seen more than a few people raise concern over violent video games and the cultural effect of having so many young men living virtual lives as first person shooters. tonight abc takes a look. >> reporter: across the country this week, america's love affair with violence is under the microscope. two of hollywood's hottest new releases, both shoot 'em ups, "jack reacher" and "django unchained" cancelled premieres out of respect. "hitman" led david axelrod to tweet, shouldn't we also quit marketing murder as a game? while the adults were asking questions, america's kids went on their daily shooting spree. it is virtual violence. in this case, playing one of the most popular, profitable and most violent games, "call of duty," a so called first person shooter, because the player t e takes on a killer's point of view. but is this just good fun or is an entire generation being trained and desensitized to the act of shooting people? thomas and steven are typical of many in their generation. good jobs by day, obsessed with "call of duty" when they get home. dr. chris ferguson has conducted a series of multi-year studies of 11 to 18-year-olds to find out what violent games do to them. his conclusion -- >> there's no evidence to suggest that exposure to violent video games is associated with violent criminal behavior. >> reporter: he has a name for the outcry over violent games that sometimes follows a mass shooting. he calls it moral panic. >> whenever a new form of media that comes out that particularly older generations don't use and don't understand is very, very common for that new medium to be blamed for a variety of social ills. >> reporter: in the 1950s, it was comic books and a full senate hearing over the belief that they were making america's kids turn violent. >> what are we afraid of? are we afraid of our own children? do we forget that they are citizens too? and entitled to the essential freedom to read? or do we think our children so evil, so vicious, so simple minded that it takes but a comic magazine story of murder to set them to murder. >> reporter: by the 1980s, it was tipper gore over the issue of suggestive rock lyrics. ♪ we're not gonna take it ♪ >> why do you think there is so much to sadomasochism and bondage in these songs? >> ms. gore was looking for sadomasochism and she found it. >> reporter: he supports this american academy of pediatrics finding. the received is now clear and convincing. media violence is one of the causal factors of real life violence and aggression. >> kids spend an incredible amount of time with the media, seven to 11 hours a day. they see increasingly violent media. we all acknowledge that the media have an impact. why in this country would we spend $250 billion a year on advertising if we didn't think advertising affected people. >> so whose research to believe? who to judge? the u.s. supreme court already has. in striking down california's attempt at a violent video game law, the court had this to say about studies linking games to violent behavior. these studies have been rejected by every court to consider them, and with good reason: they do not prove that violent video games cause minors to act aggressively. bonnie ross, a mother of two young children with her own concerns, also happens to run one of the most successful first person shooter games around -- "halo 4." while it's far more tame than the violent games many point fingers at, ross's advice is the same. what do you say to parents who say it's too violent, not good for kids? >> what i recommend is your kids are going to play games. play it with them so that you can really be there to answer questions and help them through that, and then you have to make a decision as a parent what's right for you. >> reporter: games, movies, music, comics. easy targets amidst a moral panic. >> as a society, if we focus in on the wrong issue, focus in on something that is a red herring, that is not going to help anybody, that can really distract the national conversation from serious issues. and thank you for watching abc news tonight. we do hope you check in with our friends at "good morning america," bringing you the world whyo
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