Community Bank of San Joaquin Trust and Investment Telegram May 31, 2002 IN THIS ISSUE: 1. Portfolio Evaluation 2. Economic Highlights 3. Bond Market Comments 4. Stock Market Comments 5. Legal Disclaimer 6. Subscribe / Unsubscribe -------------------------------------------------------------- Portfolio Evaluation * Look to Community Bank of San Joaquin for Trust and Investment Services. - Investors with portfolios of $250,000 or more are invited to receive a current portfolio evaluation with no cost of obligation. Contact Doug Wied at (209) 956-2990. -------------------------------------------------------------- Economic Highlights * Strong consumer and productivity data fall just short of expectations - Personal spending grew by 0.5% in April, slower than the 0.7% expected. Personal incomes grew by 0.3% over the same period. Large gains came from expenditures on consumer durables like cars and appliances that grew by 1.4% over the period. Consumer spending is closely watched as it accounts for two-thirds of the economy. - Consumer confidence rose to 109.8 in May, up from a revised 108.5 in April. Economists were expecting a little better at 110. The continued strength in consumer spending marks the first time consumer spending hasn't shrunk during a recession since 1948-1949. - Nonfarm productivity was recorded at 8.4% during the first quarter of 2002. The figure is down from a previous measure of 8.6% but in line with economists' revised estimates. The revised rate of productivity growth is still the largest since 1983. - Labor costs declined by 5.2% over the first quarter of 2002. The number was revised from a previous decline of 5.4% but in line with current estimates. This marks the largest decline in labor costs since 1983. - Initial jobless claims fell to 410,000 on the week from a revised 422,000 the previous week. The number was in line with estimates. The total number of workers collecting unemployment benefits is now 3.89 million, the highest since January 1983. -------------------------------------------------------------- Bond Market Comments * Bond yields drift lower - For the week, the 30-year Treasury bond's yield fell 4 basis points to close at 5.62%. The 10-year Treasury note's yield fell 10 basis points to close at 5.05%. -------------------------------------------------------------- Stock Market Comments * All three major stock indices decline over the week - For the week the Dow Jones Industrials fell 179 points or 1.77%, closing at 9,925. The broader S&P 500 fell 17 points, or 1.54%, to close at 1,067. The NASDAQ Composite dropped 46 points, or 2.76%, to close at 1,616. -------------------------------------------------------------- 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