Community Bank of San Joaquin Trust and Investment Telegram June 7, 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 or obligation. Contact Doug Wied at (209) 956-2990. -------------------------------------------------------------- Economic Highlights * Economy continues to show signs of strength. - The Institute for Supply Management's factory index rose more than expected in May. The index rose to 55.7, the fastest pace in two years, from April's level of 53.9. Factories reported the strongest demand for exports since May of 2000. The index has been greater than 50, which indicates an expansion, for four months in a row. Expectations were for an increase to 54.7. - Lifted by record expenditures on housing, U.S. construction spending rose 0.2% in April. The Commerce Department also reported that residential construction rose 0.7%. - The Institute for Supply Management reported that the service sector of the U.S. economy expanded in May at the fastest pace in almost two years. The index rose to 60.1, greater than the forecasted increase to 56.0. Services account for the largest portion of the U.S. economy. - Contrary to forecasts of an increase to 6.1%, the unemployment rate fell from April's level of 6.0% to 5.8% in May. Service companies added jobs for the third strait month in a row, while job cuts at manufacturers fell to their lowest level since November of 2000. - The Commerce Department reported that wholesale inventories fell 0.7% in April to the lowest level since October of 1999. Wholesale sales rose 1.6%, the largest increase since May of 1999. The inventory to sales ratio fell to 1.23, the lowest level in almost ten years. -------------------------------------------------------------- Bond Market Comments * Bond yields remain low despite robust economy: - For the week, the 30-year Treasury bond's yield rose 4 basis points to close at 6.66%. The 10-year Treasury note's yield rose 2 basis points to close at 5.07%. -------------------------------------------------------------- Stock Market Comments * Stocks fail to rally on positive economic releases: - For the week the Dow Jones Industrials fell 336 points or 3.38%, closing at 9,560. The broader S&P 500 fell 40 points, or 3.71%, to close at 1,028. The NASDAQ Composite dropped 80 points, or 4.97%, to close at 1,535. -------------------------------------------------------------- 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