Community Bank of San Joaquin Trust and Investment Telegram March 15, 2002 IN THIS ISSUE: 1. Economic Highlights 2. Bond Market Comments 3. Stock Market Comments 4. Legal Disclaimer 5. Subscribe / Unsubscribe -------------------------------------------------------------- Economic Highlights * Prices remain stable despite increased manufacturing activity: - The prices paid to U.S. factories, farmers and other producers increased 0.2% in February. The Labor Department reported that the increase, which was in line with expectations, was led by a rise in the cost of gasoline and food. Prices excluding the volatile food and energy sectors remained unchanged for the month. - According to the Federal Reserve, U.S. industrial production at the nation's factories, mines and utilities climbed 0.4% in February. The increase in production, larger than the forecasted 0.2% rise, was the largest since June of 2000. Capacity utilization, which measures the extent at which the nation's capital stock is used in production, rose to 74.8% from January's level of 74.2%. Analysts had predicted an increase in capacity utilization to 74.4%. - The Commerce Department reported that in January, sales at U.S. wholesalers experienced their largest gain since June of 2000. The 1.4% rise was the first increase since August of last year. Inventories at wholesalers, which account for one quarter of all stockpiles, fell 0.2%, less than the expected decline of 0.4%. The inventory to sales ratio, a measure of how long goods remain unsold, declined to 1.28 months, the lowest since March of 2000. - In February, U.S. retail sales advanced 0.3%, less than the forecasted 1.0% increase. Excluding automobiles, sales rose 0.2%, also less than the expected rise of 0.5%. Last month, spending declines in building materials offset increases in auto and home furnishing sales. - Business inventories rose in January for the first time in almost a year. The Commerce Department announced that stockpiles at retailers, manufacturers and wholesalers unexpectedly rose 0.2%. Economists had forecasted a reduction in inventories of 0.4%. -------------------------------------------------------------- Bond Market Comments * Bonds remain unchanged from last week: - For the week, the 30-year Treasury bond's yield remained unchanged to close at 5.71%. The 10-year Treasury note's yield rose 1 basis point to close at 5.33%. -------------------------------------------------------------- Stock Market Comments * Tech stocks fall off, broader market takes a breather from last week's rally: - For the week the Dow Jones Industrials rose 35 points or 0.3%, closing at 10,607. The broader S&P 500 rose 2 points, or 0.2%, to close at 1,166. The NASDAQ Composite dropped 62 points, or 3.2%, to close at 1,868. -------------------------------------------------------------- Legal Disclaimer Community Bank of San Joaquin Trust and Investment Telegram contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific securities does not constitute an offer to buy or sell securities. The past performance of a mutual fund, stock, or investment strategy cannot guarantee its future performance. This email newsletter is offered on a subscription-only basis. Because of the complexity of this service and its dependence on other systems, we cannot be responsible for delays or failures in forwarding or transmission. -------------------------------------------------------------- 5. Subscribe/ Unsubscribe To subscribe or unsubscribe to this email service visit our web site at http://www.communitybanksj.com/trust. For further assistance please contact us at trust@communitybanksj.com or (209) 956-7000. --------------------------------------------------------------