Before, minutes later, cutting the losses in half. In the end it closed 1175 points lower. A drop of 4. 6 . This marked the second day of steep losses. There was a sweeping selloff on friday over fears that the Federal Reserve will accelerate Interest Rates. We are joined by Morgan StanleyFinancial Advisor jordan steady. We have been on this upward trajectory for a long time now. What the heck happened today . Its like going to santa cruz and going up the big dipper. We have been at the top all of 2017 and we hit a downturn today. 1100 points, 1,200 points. It sounds like a lot. In 1987, blackmon we were down 508 points and that was a 22 drop. That would be significant. Today, 2. 5 on friday, its not even a 10 correction. What is driving the sell off . It extended from what we saw on friday . It has to do with the federal open Market Committee meeting meeting Janet Yellens last meeting. There is going to be three to four increases in the interest rate. Thats the amount of money that banks charge each other to borrow. And also what was released is that the wage increases have averaged 2. 9 . It scares the market. They are worried about inflation. Ironically, today is the first day of the new fed chief, jay powell today. Welcome to the job. We asked in our open to this broadcast, is this a blip or a trend . What do you think . A blip . Well, i think you have to separate the two things. There is the economy and the stock market. The economy is what we care about. Thats how we get paid. The economy is doing extremely well. The market is looking out into the future. When you look at tax cuts, putting more cash into the system, when you look at Interest Rates being actually pretty low right now, when you look at repatriation, money coming back from europe to the united states, it creates a lot of money. So that stimulates the the Federal Reserve to cool the economy down. Thing market is worried about higher increases, asking the fed getting ahead of their skis. Is in the result of a good economy . Its a result of a great economy. Since 2008, we have been building back. We have good fundamentals. I mean, in 2008 we had poor fundamentals. We have excellent fundamentals right now. We announced last week 88 straight months of continual job growth. I mean, europe is envious of our ability to do this. One of the criticisms is i heard that the economy is at full bore. The unemployment is the lowest in many, many years. Inflation has always been a concern, but its not really happening out there. The economy is doing great. The tax cuts are overheating the economy. Does that make sense . The tax cuts could overheat the economy along with money being incredibly cheap. Thats what the market is fearing. There is a fear factor. We are in the fear factor. We are fearing that causing fomc to raise the Interest Rates. If they do that, we are worried about the economy slowing down. Its a worry. Youve got to go back to our fundamentals. Our earnings reports. Our Quarterly Earnings reports being very good. The bond market stress is something that is weighing heavy . Right. We are worried about an inverted yield curve. That means that shortterm rate will pay off better than the longer term rate. This will work out. I know you are not a political analyst. You can take a pass on this question, but the president has been taking a lot of credit for the success on the stock markets. He hasnt said anything that i know of today about this big dump on the market. Can he take credit . If he does take credit, should he take some of the blame as well . Thats an interesting question. If you look at it, last year was a policy year. The election and implementing tax policy. We move into 2018, whats that . Its going to be a Political Year because of the midterm elections. Ill leave it up to you. Yeah. But most patients choose not to talk about what happens on wall street because it is so fickle. Exactly. As you mentioned, you cant take credit for it when its doing well and avoid the issue when its not doing well. Most president s dont touch it. Thanks. Well, just steps from burned out lots in santa rosa, the city witnessed another tragic event today. This time on surface streets at the end of the morning commute. Tom vicar live in santa rosa. Many people say its incredible no one died at the scene. Reporter pretty incredible. Now, i have to set the stage here. This is mendocino overpass. The overpass is highway 101. There are destroyed hotels to the right. Then on our left side there is the destroyed trailer park. Right behind us there is this destroyed truck. One of ten vehicles involved. The problem is that bad luck, once again, has befallen the good people of santa rosa. He was just crossing the santa rosa intersection when a dump truck came barreling down a hill causing an enormous collision at 9 25 this morning. Right in the middle of the intersection i hear honk, honk, and i see the dump truck 70, 65 Miles Per Hour coming down fountain grove. Right behind me, boom, boom, boom, boom. Then i stopped and i looked and there is mass cars turned everywhere in the intersection. Burst in flames. Trail of flames. Cars in flames. Reporter in the precious minutes before First Responders arrived larry and other Good Samaritans helped pulled the injured out of the mangled and burning and smoking cars. You know, a couple cars here on fire here, cars on fire here, so we pulled over and kind of like the paramedics or no one was here yet. I said, hey, see if anyone needs help. I mean, its a decision to help somebody instead of run away. If you were in that situation, you wouldnt want people to run away. Reporter firefighters arrived in minutes. Injuries are us a the first priority. Thats our way of sorting how we are going to decide who is the highest medical priority on the scene. We use the triage tag. This tag is designed for being able to put on the patient and write down what their injuries are. Reporter of the ten vehicles involved, six burned. Most destroyed. There are reports that the trucks brakes may have actually been on fire as it came down the long hill only to barrel across that crowded intersection. One of the things that police may have do is to bring in specialized equipment so they can literally weigh that truck as it sits right there. Its possible it may have been overloaded. That would be a significant factor in this kind of accident. That will be a part of our investigation as to the braking system of the dump truck. Reporter those three serious injuries have been redescribed as critical, which is a worst situation. Fountain grove avenue opened up at 2 00 going to the and 4 00 going to the east. This could take several hours to do because we dont know how much damage there has been to the road underneath all of these vehicles. What that means, of course, is this overcrossing here in santa rosa may be closed for many thursday come as they look hours to come and they look at it and potentially repair the road. Time vicar, ktla fox 2 news. A lot of work. Thank you. Santa rosa fire Officials Say high winds and pg e power lines are the cause of fires the same night north bay fires started. Meteorologists say wind gusts were more than 60 Miles Per Hour that night. The fire marshal says that wind played a contributing role in starting the small fires. In some cases where we had the lines physically connecting with one another because they were coming in contact with another, we actually physically were able to witness sparks coming from the utility that were associated with the winds. The fires burned two houses on sullivan road, damaged part of a montessori school. Cal fire continues to investigate the deadly north bay fires and has not said when it will complete its report. Pg e is urging caution about assigning blame saying, quote, there has been no determination on the causes of the fires and we remain focused on doing everything we can to help Sonoma County recover and rebuild. Our thoughts are with everyone impacted by the devastating fires. These communities and neighborhoods are where our customers, employees, family and friends live and work and nothing is more important to us than their safety and well being. Another step in the Recovery Process after those wildfires. Students returned to school. The fires destroyed portions of their school. The students have been displaced ever since. The school caters to students on the autism spectrum. Today they returned to their campus to brandnew portables. It warms my heart. We have been working towards this day for the last four months. The School Mascot used to be a dragon. Since the fire they adopted the phoenix. A symbol of rise interesting the ashes. School Officials Say it will be two to three years before they get a timeline on returning to a permanent building. The state Attorney Generals Office will oversee reforms at the San Francisco police department. This is an effort that started back in 2016 after several officerinvolved shootings in the city. After review the department of justice under the Obama Administration recommended 272 changes or reforms. But in september the Trump Administration announced that the policing program would no longer provide resources or guidance. Accountability, transparency, confidence and trust. They come from giving people a sense that there will be an independent review of the work thats being done. The doj, the california dojs assessment, will provide an independent assessment of the work that were doing. Chief scott says of those 272 recommendations, the department has implemented about half of them, and they include adding body cameras, changing use of force policies, and recruiting of more diverse police force. Coming up, officials in san jose clear a homeless camp in the area. Why activists are crying foul. Another bay area city eyes license plate readers. Where officials in alameda want to put them up. Temperatures in the 70s. Looking for rain. I will see you here after the break. Its time for the ultimate sleep number event on the only bed that adjusts on both sides to your ideal comfort, your sleep number setting. Does your bed do that . Right now, our queen c2 mattress is only 699, save 200. Ends soon. Visit sleepnumber. Com for a store near you. The city of alameda wants to add cameras that read license plates in order to help fight crime. The cameras would go in at eight locations around alameda and bay farm island. Live at the Alameda Police department, henry, they already have some license plate reading capability, dont they . Reporter yeah, but they are on top of cop cars. These new cameras will be at six spots around the island. This is an Alameda Police car outfitted with license plate reading cameras. This car and three others like it arent being used all the time, so now the department wants to add 13 more cameras on poles around alamedas borders to alert officers about suspects cars coming or going and put a dent in property crime, including car burglaries. Instead of them looking for a needle in the hay stack, they say the needle just came over the bridge, photographed at this street or this intersection two minutes ago. Reporter by automatically capturing the license plates of all cars they see, the technology flags police if a car is stolen or wanted for a crime. Police can also go back later to see if a vehicle was near a crime scene. It just automates a very sort of tedious, random, luck of the draw Lottery Ticket find by a patrol officer. Reporter they want to add them at the webster and posey tubes and several other spots. In piedmont license plate readers were installed in police cars and at street corners in 2013. Since then property crime has dropped by 41 . We have a responsibility to Leverage Technology to keep our communities that we are charged with serving and protecting safe. For us not to leverage this technology, quite frankly, would be a shame. Reporter the cameras dont take pictures of drivers or store any personal information. It doesnt tell me the gender, the race, the religious background, the immigration status. Reporter now, coming up at 5, why the police chief says this data will not be shared with federal immigration officials. You will also hear from a privacy advocate. The Alameda City Council will review this proposal tomorrow night. The price tag is 500,000. Live in alameda, henry lee, ktvu fox 2 news. A controversial idea. Something other cities have adopted. Thank you. Check in with chief meteorologist phil martin to tell us about our summer in february. Thats right. Hard watching the super bowl with 80 degrees outside. Right . It was crazy. Temperatures above the average. More records yesterday. Probably a record or two today. I havent got the numbers in yet. But temperatures in the mid70s out there. Some low 80s. Concord 80 degrees a half hour ago. Not so for the rest rest of the country. You saw the game. Outside temperatures were below freezing in minneapolis and the dakotas. The whether, well, ill show you. We will look at the temperatures right now. The current temperatures. Oops. I did not want to do that. The current temperatures out of minneapolis and chicago 17 degrees in buffalo. Thats where the cold is. Look at the Southern Tier states. Its kind of warm, right . Towards florida and atlanta. We are under this big ridge of high pressure, which you know about. I dont have to tell you about it. Its this big thing that goes, oh, thats the jet stream. It dishes out like this. This pattern is sort of locked in, right . Its just its locked in. The high is there. The low is there. Until this low that i put in there moves, that high stays put and we stay dry and above average temperatures. Thats how it goes. A blocking upperlevel jet stream pattern that is not shifting any time soon. The longrange models are not very optimistic about rainy time soon. What are you gonna do with that . There are some potential snowfall situations in the mountains and that will occur towards the end of next week, but it would be very light at best. 80 in concord right now. Right . 80 in concord. At this time of night in february 75 fairfield. 77 in san jose. So very unusual weather. Another day like this tomorrow. I will see you back here with the details. Thank you. Hundreds of People Living in one of San Francisco one of san jose, excuse me, homeless encampments were removed from the area today. As allie rasmus reports, a group of advocates protested the sweep. This homeless encampment is adjacent to felipe avenue in san jose. Directly above is the 101 southbound overpass. This land is opened by caltrans. They are conducting a sweep of this homeless encampment. We heard from some of the People Living here there are as many as 100 people who live here with their personal belongings and tent. Also out here this morning was a group of about 20 to 30 people from homeless advocacy groups. They were protesting the sweep going on this morning. They say the city of san jose, the county and state need to team up with leaders to find a better solution for People Living in these homeless encampments. The pastor of the church said this is never ending cycle of sweeps moving the homeless from one part of the city to another. You have to do Something Better than this. I have seen these camps up close for years. Camps are tough places to live. The battle is over things like tarps and tents and water. You know, its really primitive. Its like fourthworld condition. This is silicon valley. You would think someone would come up with a solution. I dont want the community to look at us and say that, oh, those crumbs, you know. Were regular people as well. And i just want the public to know one thing about the homeless people. We cry, too. Its rough. We are just concerned, making sure that safety definitely is a top priority. This particular location needs to be safe for everyone. Reporter Santa Clara County plans to spend 950 million on Affordable Housing over the next ten years thanks to a bond approved by voters in 2016. Its going to take about a decade to build and add and convert. Meantime, the homeless advocate groups say there seems to be an interim solution, shortterm solution, a place for people to go into these homeless encampments so they dont move from one camp to another around the city. Allie rasmus, ktvu fox 2 news. The House Intelligence Committee votes to release a confidential democratic memo. Will the president agree to it as yet another Government Shutdown looms . Strummed guitar you cant experience the Canadian Rockies through a screen. You have to be here, with us. Upbeat music travel through this natural wonder and get a glimpse of amazing, with a glass of wine in one hand, and a camera in the other, aboard rocky mountaineer. Canadas Rocky Mountains await. Call your travel agent or rocky mountaineer for special offers now. With just days to go before the government could be shut down again, debate over immigration is heating up again. Allison barber with details. Reporter a bipartisan deal on immigration, President Trump is already pushing back. We are building the wall. Believe me. Reporter Immigration Reform is once again in the spotlight on capitol hill. Senators john mccain and chris coons unveiling a bipartisan bill on the issue with mccain releasing a statement reading, quote, our legislation would address the most urge sent priorities of protecting dreamers, strengthening border