Community Bank of San Joaquin Trust and Investment Telegram June 14, 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 * Consumers, Prices take a breather in May - Industrial production grew by 0.2% in May, slower than the 0.3% expected growth. Declines in autos and utilities led the figure lower. This increase marked the fifth strait monthly increase in production. Business inventories fell by 0.2% in April, as was expected, marking the fifteenth strait monthly decline. Capacity remained relatively unchanged in May at 75.5%. - Once again, inflation appears to be held in check as the Producer Price Index fell by 0.4% in May. Economists were expecting the index to increase by 0.1%. - May retail sales surprised economists declining by 0.9% versus an expected 0.3% drop. Car and truck sales fell to their lowest level in four years as zero-percent-financing came to an end. Stock prices declined on the news as consumer spending accounts for two-thirds of the US Economy. - The University of Michigan's Consumer Confidence Index fell to 90.8 from 96.9 last month. Economists were only expecting a mild decline to 96.5. Increased concerns of more terrorist attacks combined with continued mistrust of corporate accountability appears to be leading stock prices lower and slowing consumers. - The employment picture continued to positively surprise economists as the number of new jobless claims grew less than expected. Initial jobless claims grew by 6,000 to 390,000 claims for the week marking the second straight week below 400,000. -------------------------------------------------------------- Bond Market Comments * Weaker economic data causes bond yields to fall - For the week, the 30-year Treasury bond's yield fell 25 basis points to close at 5.41%. The 10-year Treasury note's yield fell 26 basis points to close at 4.81%. -------------------------------------------------------------- Stock Market Comments * Stocks fall on weaker consumer data, terrorism concerns - For the week the Dow Jones Industrials fell 115 points or 1.20%, closing at 9,474. The broader S&P 500 fell 20 points, or 1.97%, to close at 1,007. The NASDAQ Composite dropped 31 points, or 2.04%, to close at 1,505. -------------------------------------------------------------- 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