Community Bank of San Joaquin Trust and Investment Telegram April 26, 2002 IN THIS ISSUE: 1. Economic Highlights 2. Bond Market Comments 3. Stock Market Comments 4. Legal Disclaimer 5. Subscribe / Unsubscribe -------------------------------------------------------------- Economic Highlights * Strength of the economic recovery remains unclear - First quarter Gross Domestic Product grew at an annual rate of 5.8%, beating estimates of 5%. Most economists attribute the strong growth to inventory reductions made by business over the previous quarters. - The U.S. Employment Cost Index grew by 0.8% during the first quarter of 2002, marking the slowest growth in the index since the first quarter of 1999. Economists were expecting 0.9%, attributing company cost cuts in wages and bonuses as the major reasons for slower growth. - Initial jobless claims dropped by 31,000 from the previous week to 421,000. Most economists had anticipated 425,000. While the report showed a decline week over week, the number is still higher than the average weekly 411,200 for the year. - March home resales fell 8.3% to a 5.4 million annual rate. Analysts had expected sales to fall off to a 5.52 million annual rate. While resales slipped during the period, the annual rate of 5.4 million still tops last year's record of 5.3 million. - New home sales declined by 3.1% in March to an annual rate of 878,000. Consensus estimates were figuring a decline to 883,000 annually. - Durable goods orders fell 0.6% in March versus forecasts of a 0.5% increase. Non-defense orders were hit, looking at orders excluding defense, falling by 1.2%. Positive news came from the report as inventories reported a decline of 1.1%, their fourteenth straight monthly drop. - The Federal Reserve's Beige Book, a compilation of information from regional Fed banks, said the economy has displayed "signs of improvement" in almost all districts. -------------------------------------------------------------- Bond Market Comments * Expectations for Fed rate increases wither, bond yields fall - For the week, the 30-year Treasury bond's yield fell 9 basis points to close at 5.59%. The 10-year Treasury note's yield fell 14 basis points to close at 5.06%. -------------------------------------------------------------- Stock Market Comments * Major indices post largest weekly decline since September - For the week the Dow Jones Industrials fell 346 points or 3.4%, closing at 9,911. The broader S&P 500 fell 49 points, or 4.4%, to close at 1,076. The NASDAQ Composite dropped 133 points, or 7.4%, to close at 1664. -------------------------------------------------------------- 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. For further assistance please contact us at trust@communitybanksj.com or (209) 956-7000. -------------------------------------------------------------- Subscribe/ Unsubscribe