three-year-old carlos nava, jr. died after i bullet from a drive-by struck him in the neck on international boulevard. we have the latest on this case from pittsburgh. >> yeah. two arrests out here, dan. but at this point, oakland police are want ready to say if these two arrests are solidly connected to the shooting death of three-year-old carlos nava, jr. but they did say this case is rapidly progressing and the police chief said he believes this case will be wrapped up within 24 to 48 hours. now, earlier this afternoon, oakland police followed a lead to the kirk creek apartments here in pittsburgh. they arrested at least two men. and they are still questioning others and running checks on possible suspect vehicles. neighbors say it's an apartment that sees heavy traffic during the day and night. when police showed up around 4:00, neighbors say it was obviously a serious situation. >> they had one cop over here and then one over posted about five cars down. and they had cop cars and people behind the building and telling us to stay in. and they all had their weapons drawn and they brought out the k-9, actually. and i heard them asking for the k-9. >> back in oakland, an inraged community came out to pay tribute to three-year-old carlos nava, jr. tonight. he was caught in the crossfire of a drive-by shooting in front of a pizza shop along international and 64th avenue yesterday afternoon. several city leaders were also in attendance. they acknowledged the ongoing violence and told the crowd they're fed up. >> we as a city and we as a state and we as a federal government need to go out and find the resources. if we are going to make communities like oakland a safe place for people to be able to live and to raise their families and enjoy the comfort of their home and not have to go to bed, wondering if your wife goes to the grocery store that they may not return home. >> what does it take the life of a three-year-old foritous stop shooting each other in the city of oakland? what does it take to raise the consciousness of this city so we can stop this from happening?! not just a three-year-old, 16-year-olds, 17-year-olds. >> now, carlos nava, jr.'s mother and sibling who live just around the corner from this scene also showed up tonight. they showed up briefly, but they didn't talk. there has been an outpouring of support from the community. in fact, police say the key players that gave them these strong leads and clues in the case are community members. now, back here in pittsburgh, police are still questioning those people in the apartment unit behind me over there. no confirmation, however, on whether these two arrests tonight are solidly connected to the murder of carlos nava, jr. but police believe they have a very solid lead here. reporting live in pittsburgh, allen wong, abc7 news. >> it sounds like t. thanks very much. a nine-year-old boy continues to improve after suffering several injuries when a suspected hit-and-run driver plowed into him in san francisco last week. ryan white's family reported that he has started speaking in complete sentences after being able to respond only to basic commands with a thumbs down or thumbs up. the mayor visited the boy. the driver hit the boy when the family walked back to their hotel after the phillies/giants game. they thanked the people of the bay area for their sympathy and support. back from the brink, the forward momentum continues on the global economy. most asian stocks tonight are on the upswing and in positive territory, though malaysian stocks are down. the dow came roaring back from yesterday's 600-point plumpl, picking up 400 points after trading was up and down several hundred points, before a furious rally, much of it coming after the federal reserve did something it has never done before, promise to keep interest rates at rock bottom for two more years. what the fed sees in the numbers is what so many of us already feel, that the american economy is very, very weak. more tonight from mark matthews. >> fed chair ben bernanke threw ice water on the rally -- growth considerably slower than previously anticipated. unemployment will decline only gradually. and interest rates on federal funds will remain extraordinarily low until 2013. at that, the market fell 400 points and then in the final hour, rallied to close up more than 400. why? has even the experts stumped. >> i don't think anybody really knows the answer. if anybody says they know the answer, i would be somewhat suspicious. >> a professor of finance at stanford's business school says it's too sim policeic to believe it's a simple reaction to the double-a plus rating by s&p. >> it doesn't seem to be a big enough deal to cause the volatility. >> it didn't discourage investors from buying u.s. treasuries. that market is booming, pushing interest rates lower. >> the trend certainly has been lower over the last week or two. >> the president of california's association of mortgage professionals says mortgage rates will likely dip to 4%. but it won't help the housing market because confidence in the economy has disappeared. >> we are missing that piece right now. >> yesterday, the president said the problem was political, lawmakers unable to compromise for the good of the economy. today a cnn poll showed rising negative numbers for the republican party. democratic numbers were holding steady. but the tea party negative views are up. tea party favorite, michele bachmann. >> we are going to get the triple-a credit rating back. we are going to do it and this is how. we are going to cut spending now. >> abc7's political analyst. >> basically, republicans are going to believe that it's obama's fault and democrats are going to believe it's the tea party's fault and the state voters will think it's both sides' fault. >> the lasting impact on the presidential election? none. unless this is signaling a deep terslide into another recession. in which case the president is in really deep trouble. the craziness on wall street won't help california. new numbers suggest we could be facing another budget crunch by the end of the year. annette miranda reports from sacramento. >> just one month into the fiscal year and tax receipts missed the mark by more than 10%. california collected $539 million less than the budget plan projected for july. while income tax was up, sales and corporate taxes were down, without republican approval for tax extensions, the sales tax rate dropped july 1. >> obviously, we wanted to be on the up side above estimates. let's keep a careful watch on the economy. >> the lower numbers are worrisome, because the budget steined in june relies on a $4 billion windfall. if that doesn't fully materialize by the end of the year, more budget cuts are triggered in january. less than $2 billion in extra revenue means, public schools will be in session seven fewer day, drop the school year from 180 days 3 years ago, to 168 days. kids from other industrialized countries go to school more than 200 days a year. >> it's a trigger occurs, there will be irreparable harm done to a generation of kids. >> with budgets and lessons already in place, administrators wonder how it readjust in january. >> are you going to cut the civil war? are you going to cut learning of the alphabet? what will you trim? >> if extra revenues come in, the academic year stays intact, but cuts to csu and ur u.c. are triggered, $100 million apiece. but optimists point out, this is just the first month and things could pick up by december. >> we have been assured numerous times that the legislature is very doubtful the triggers will be pulled. >> the state controller's office believes consumer spending should pick up in the second half of the year. but that could be blunted in capital gains taxes fall with stock market returns. >> the california public employees retirement system took an $18 billion hit in the market implosion. the value of the nation's largest public pension fund was $220 billion at yesterday's closing bell, down 7.6% since the end of the fiscal year on june 30. but of course, things bounced back a lot. the portfolio dropped from a record high of $260 billion as the 2008 recession began to $168 billion when it was over. >> well, the real estate crisis is tough enough, then factor in the crook who is prey on people in desperate times. authorities are vowing to find them, stop them and lock them up. >> we will aggressively prosecute those individuals who commit loan fraud, who commit real estate fraud. >> according to alleed media county district attorney, these are some of the faces of those who have committed mortgage and real estate fraud in the bay area. >> when people are in desperate times and i mean victims who are suffering the economic crisis, they oftentimes turn to desperate measures. >> those measures include turning to those who ask homeowners for money up front nexchange for a loan modification that never comes. >> as recently as two months ago, we convicted two operators in the san jose loan modification company called legal support services, a felony foreclosure consultant fraud, involving over 80 victim homeowners. >> a lot of victims, they do not wish to come forward. >> this woman was the victim of a scam involving her home. she thinks many of those who prey on the elderly especially, have already gotten away with it. >> look at all the people who have been victims of real estate fraud, for all these yearss. it may be too little too late. >> wells fargo representative says homeowners seeking a loan modification should try to deal with their bank. >> i encourage customers, even if they tried before, call us again. work with us again to see if -- especially if something's changed in their position and their hardship and they want to be reviewed, call us. >> there is a handful of servicers who seem to have picked up their processes. but at the top, you have the largest servicers with the biggest loan portfolios who are not getting any better. >> despite claims that they are doing more to keep people in their loans and their homes, according to the california reinvestment coalition, only 23% of those who apply for a modification actually get one, in oakland, laura anthony. abc7 news. >> stay with us. there is a lot more to get to. passengers are rush to the hospital as an american airlines jet hits severe turbulence. more than 24 hours after a computer meltdown, b.a.r.t. has no idea what caused the problem. what the transit agency is doing in the meantime. >> a local man cashes in on the record price of gold. a word of caution about the wisdom of selling the family jewels. >> after a warmup today, which way will temperatures trend tomorrow isn't answer in my accu-weather forecast, coming up. >> and test flight, an aircraft about to launch from california about to launch from california so the jury has rendered its verdict -- guilty. [ cheers and applause ] i'm here with the defendant. sir, the plaintiff claims she changed her travel plans, paid the difference in airfare, but you added a 150-dollar change fee. oh, boo hoo. who can afford a 150-dollar change fee? me. well, she says she's going to fly southwest next time because they don't do that. they love customers, i love cash. [ male announcer ] don't pay a change fee on top of a fare difference. fly southwest, the only major airline that never charges change fees. u. major turbulence forced an american airlines plane to make an emergency landing. partners and six crew were on their way from miami to washington, d.c. when it flew into a series of thunderstorms. pilots immediately reported fairly good turbulence, was the term they used. serious enough that the pilots declared an emergency and rerouted to charleston, south carolina. met by emergency services on the ground, several passengers asked for medical care. five were rush to the hospital. >> the airline says none of the injuries are serious. back here, a different form of transportation. b.a.r.t. believes a computer server problem caused a glitch that stranded thousands of passengers last night. they stopped all trains at 7:30 and full service eventually resumed not until 11:00 p.m. it started when the b.a.r.t. control center stopped receiving information from track-side computers located through the the system. >> the information comes through the network reuters. when one rueter goes down, it is supposed to tell the other one, have you to pick up the load. well, that didn't happen. and what ended up happening is no information got to the operations control center. >> computer experts rebooted one of the servers and that enabled trains to start running. but tell take more time to find the root cause of the problem. in the meantime, b.a.r.t. will keep extra technicians on hand who are trained to quickly reset the reuters. >> with stocks a scary investment, there is a new gold rush underway. people are buying and selling like crazy. the price of gold hit a new all-time high today, $1755 an ounce. it's driven by the uncertainty of other investments. >> gold 14 karat gold. we will be paying $24 a gram. >> calls are coming in because of newspaper ads and commercials saying it's the right time to sell. >> gold prices are at record high. now is the time to sell. >> shirley agrees. she showed up in san jose with old earrings, necklaces and bracelets she wants to turn into cash. >> gold is high. and it's stuff that i don't use and i don't wear. it's just siting there. might as well make a little monoit. >> she's not alone. her niece was here with her friends. gold prices have soared 20% in a few weeks. the owner of this gold crown was paid $60. here's what this family business has purchased in the past week. this is $60,000 of gold that will be sold to a wholesaler. >> honestly, a lot of people, i think, are desperate. a lot of people need money to pay bills, their mortgage or feed their children. >> the price of gold could still rise as a result of economic turmoil. but this financial planner doesn't see any harm in selling now. >> if they need the cash, then, you know, about the only thing they can do with the gold is wear it around their neck and the use would be better elsewhere, absolutely, this is a pretty good time to have a party and have a good time and sell gold. >> panning of gold is on the rise. prospecting stores say panning requires skill, experience and luck, a more serious gold seeker can expect to invest $5,000 in equipment. >> it is an unusual situation in that it is a buyer's market and a seller's market. there is lots of competition to buy gold. the experts say, be sure to get plenty of mates before you make a decision. >> all right. we are mining for sunshine around here. spencer christian has the forecast. beautiful. >> we got a lot of it. today, it was 3 to 5 degrees warmer than yesterday, especially inland. so it's very summer-like today. the high-definition camera, looking out over the city of san francisco, toward the bay bridge. you can see the bay bridge. can't see san francisco because of the marine layer, working its way across the bay. let's take a look at the satellite, closer from this afternoon, we had a thin, shallow marine layer, clinging to the coast today and a moderate to gentle seabreeze. it didn't cool us down. it warmed up. but the fog kept things mild at the coast. here's a sampling of our highs. inland east bay, 90 at fairfield, concord. novene in livermore. 96 in ukiah. 91 in cloverdale and 91 in morgan hill. a warm day all around the bay area. we may have another one close to that tomorrow. right now, 56 in san francisco. 63 in navano, 59 in santa rosa. east bay is mild, 79 at antioc and 75 at concord. low clouds and fog will work their way locally across the bay tonight. it will be mild to warm tomorrow and we will have minor variations in the temperature range through the weekend. overnight tonight, weil see a very millennium familiar pattern -- we will see a very familiar pattern of lows. satellite hoes nothing major in a big, new weather system that will change the pattern. so we have a nice, quiet, steady pattern. nationally, the heat wave continued with highs of 105 in phoenix, dallas with the 39th consecutive day of three-digit temperatures in dallas. here, low clouds, pulling back to the coast by midday to early afternoon with a high temperature range from tw 60s near the coast to 70sarn the bay and 80s and low 90s in the warmest inland locations. south bay, upper sevens to low 80, 81 in san jose. on the peninsula, 70s, 75 at palo alto. 67 in san francisco. 62 in the sunset district. in the north bay, 94 in ukiah. 86 in santa rosa. near east bay highs in the 70s, 72 in oakland and 78 in castro valley. inland east bay, almost hot, 90 in antioc. near monterey bay, 69. and 85 inland at gilroy, 87. here's the seven-day forecast, not much change in the highs until sunday and monday, when inland high its top out at 90. we will see 80 degreesarn the -- degrees arounds the bay. comfortably warm weather for several days. >> another night of chaos in britain. the story behind this desperate leap of faith. also tonight, why yosemite national park officials want to tear down an historic camp site. 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[ ding ] >> the national park service wants to remove cabins from one of yosemite's most historic camp grounds because of danger of falling rocks. a section of curry village was closed in 2008, after falling rocks hit 17 cabins. no one suffered serious injuries. but the rock slide did trigger a safety review. the camp dates back more than a century, wonderful history. the park service says removing the cabins would maximize safety and allow the area to return to a natural state. the park service will hold a public meeting on the plan next month. and experimental aircraft that could reach speeds of 13,000 miles per hour, 20 times the speed of sound, is set to blast off tomorrow from southern california. the pentagon is testing new technology to give it a vehicle capable of delivering a military strike anywhere in the world in less than an hour. the unmanned aircraft is the falcon hypersonic technology vehicle 2. it will launch from vandenberg air force base, level out and splash down and sink 4,000 miles away in the marshal islands. to give you an idea of how fast it can travel, it could go from los angeles to new york in less than 12 minutes. wouldn't that be a convenient flight? a program to increase the number of latino students in college got a generous donation from a couple who won the lottery. the $1.25 million gift was announced in san francisco during a meeting of educators. a recent study found a vast majority of latino students that get into college simply don't stick around to get the degree. >> we found that after six years, only 2 in 10 earn a certificate, an associate degree or transfer to a four-year university. we think that's also unacceptable. >> there is some good news. a report by the group excellence in education found the number of latinos earning undergraduate degree