Community Bank of San Joaquin Trust and Investment Telegram May 3, 2002 IN THIS ISSUE: 1. Economic Highlights 2. Bond Market Comments 3. Stock Market Comments 4. Legal Disclaimer 5. Subscribe / Unsubscribe -------------------------------------------------------------- Economic Highlights * Manufacturing continues to rebound, employment remains soft - The unemployment rate increased to 6% during April, the highest in seven and a half years. Most economists were expecting 5.8%. Many attribute the current rise to the fact that people are entering the workforce faster than jobs are being created. - Initial jobless claims declined by 10,000 from the previous week to 418,000. Economists were expecting around 405,000 for last week. Employers appear more comfortable increasing overtime and using temporary labor to meet growing labor needs rather than opting for new hires. - March factory orders increased 0.4%. Economists were expecting no change on the month. Areas experiencing greater demand were fuels and defense equipment. Declines came in capital goods. - The April ISM Manufacturing Index fell to 53.9 versus expectations of 55. An index greater than 50 implies expansion and less than 50, contraction. Many economists note the slower growth is due to tapering business inventory investments. - Construction spending fell 0.9% in March, more than the 0.2% decline expected. Spending is still up for the year but reductions in government projects pushed totals down. Light growth was reported in home building. - Consumer Confidence dropped to 108.8 during April form the 110.7 reported in March. The number beat economist's expectations of 107.5. Many attributed the decline to higher energy prices and a negative wealth effect from lower stock values. -------------------------------------------------------------- Bond Market Comments * Little change in bond yields, long-term rates post small decline - For the week, the 30-year Treasury bond's yield fell 5 basis points to close at 5.54%. The 10-year Treasury note's yield was unchanged closing at 5.06%. -------------------------------------------------------------- Stock Market Comments * Dow climbs, NASDAQ and S&P fall - For the week the Dow Jones Industrials rose 96 points or 0.97%, closing at 10,007. The broader S&P 500 fell 3 points, or 0.28%, to close at 1,073. The NASDAQ Composite dropped 51 points, or 3.06%, to close at 1613. -------------------------------------------------------------- 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