Community Bank of San Joaquin Trust and Investment Telegram May 17, 2002 IN THIS ISSUE: 1. Economic Highlights 2. Bond Market Comments 3. Stock Market Comments 4. Legal Disclaimer 5. Subscribe / Unsubscribe -------------------------------------------------------------- Economic Highlights * Strong consumer data helps spur stock market rally - April retail sales grew 1.2%, beating estimates for 0.6% growth. Spending increased at a 3.5% annual pace during the first quarter of 2002 after growing by 6.1% annual rate during the fourth quarter of 2001. Consumer spending accounts for about two-thirds of the total economy. - April consumer prices rose 0.5% following a 0.3% gain in March. Analysts were expecting an increase of 0.4%. Large price gains came from energy and tobacco. For the year, the Consumer Price Index is growing at a 3.8% annual rate compared to 3.5% over the same period last year. - Business inventories fell for the fourteenth straight month in March, decreasing by 0.3%. Economists were expecting a lesser decline of 0.2%. Some of the largest reductions came form clothing and department stores. - April housing starts declined 5.4% to a 1.555 million annual rate from a 1.644 million annual rate in March. Analysts were expecting an annual rate of 1.625 million for April. Overall for the year, housing starts are now on target to grow by 1.654 million units. - Industrial capacity rose to 75.5% during April from 75.3% in March. Economists were expecting an increase to 75.6%. While still below the 81.8% average of the past decade, capacity has rebounded from a nineteen-year low of 74.4% in December 2001. - Initial jobless claims for last week grew to 418,000, up from a revised 416,000 the previous week. Economists were expecting lower claims of 405,000. The total number of people receiving unemployment benefits is currently at a nineteen-year high of 3.9 million. -------------------------------------------------------------- Bond Market Comments * Bond yields post large weekly gain - For the week, the 30-year Treasury bond's yield rose 15 basis points to close at 5.75%. The 10-year Treasury note's yield rose 14 basis points to close at 5.26%. -------------------------------------------------------------- Stock Market Comments * Broad market rally, NASDAQ has biggest weekly percentage gain in over a year - For the week the Dow Jones Industrials rose 413 points or 4.16%, closing at 10,353. The broader S&P 500 rose 52 points, or 4.89%, to close at 1,107. The NASDAQ Composite climbed 141 points, or 8.78%, to close at 1,741. -------------------------------------------------------------- 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