Community Bank of San Joaquin Trust and Investment Telegram May 24, 2002 IN THIS ISSUE: 1. Economic Highlights 2. Bond Market Comments 3. Stock Market Comments 4. Legal Disclaimer 5. Subscribe / Unsubscribe -------------------------------------------------------------- Economic Highlights * Revised GPD figure, leading indicators suggest slower recovery - First quarter GDP was revised down to a 5.6% annual rate from its previous 5.8%. Economists were expecting an upward revision to a 6% annual rate. The downward revision is being attributed to weaker business investment and slower consumer and government spending than previously recorded. - The Index of leading economic indicators declined by 0.4% during April after rising 0.1% in March. Analysts were expecting a milder decline of 0.2%. Several economists mentioned that skeptics won't be convinced until sustainable increasing demand becomes a clear reality. Many think that continued weakness in employment is the largest hurdle preventing this goal. - Orders for durable goods increased by 1.1% in April after growing by a revised 0.2% in March. Economists were only expecting growth of 0.5%. Increased demand for appliances, cars, and machinery helped lead the surge in the index. - New home sales grew by 1% to a 915,000 annual pace during April from an upward revised 906,000 in March. The average rate of a 30-year mortgage dropped to 6.82% in April versus 7.06% in March. The lowest recorded rate over the past ten years was 6.36% in October 1998. - Initial jobless claims fell to 416,000 on the week, from an upwardly revised 425,000 the week earlier. The total number of people collecting unemployment benefits has increased eleven of the past twelve weeks to 3.87 million, the most in nineteen years. -------------------------------------------------------------- Bond Market Comments * Treasury yields decline - For the week, the 30-year Treasury bond's yield fell 10 basis points to close at 5.66%. The 10- year Treasury note's yield fell 8 basis points to close at 5.18%. -------------------------------------------------------------- Stock Market Comments * Major indices give back some of last week's gains - For the week the Dow Jones Industrials fell 249 points or 2.4%, closing at 10,104. The broader S&P 500 fell 23 points, or 2.1%, to close at 1,084. The NASDAQ Composite dropped 80 points, or 4.6%, to close at 1,661. -------------------------------------------------------------- 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