Community Bank of San Joaquin Trust and Investment Telegram June 21, 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 * Solid economic data not enough to rally stocks - Leading Indicators, a measure of the economy's direction, grew by 0.4% in May, twice as fast as analysts' were predicting. The bullish economic news caused bond prices to drop but failed to rally stock prices that were under pressure from earnings jitters and Middle East tensions. - The Consumer Price Index remained unchanged in May. Economists were expecting a small increase of 0.1%. Declines in the price of gasoline, food, and autos offset any gains in computers and clothing. The measurement shows there is a continued lack of pricing power facing businesses and inflationary pressures remain under control. - An 11.6% surge in May housing starts surprised economists expecting a more mild increase of around 3%. The rise is the largest in almost seven years. Almost every region in the US showed surprising gains with the Midwest leading the way with a 24% increase. - The trade gap grew to $35.9 billion in April from a revised $32.5 billion in March. Economists were predicting a smaller increase to $32.2 billion from a previously reported $31.6 billion. However, both imports and exports grew during the month. The widening trade gap will be a drag on GDP in the upcoming quarter. - Initial jobless claims declined less than expected to 393,000 from a revised 395,000 the previous week. Economists were expecting a contraction to 385,000. Many analysts were happy to see the figure remained below 400,000 for the third straight week. -------------------------------------------------------------- Bond Market Comments * Bond yields slip lower - For the week, the 30-year Treasury bond's yield fell 2 basis points to close at 5.40%. The 10-year Treasury note's yield fell 4 basis points to close at 4.76%. -------------------------------------------------------------- Stock Market Comments * Stocks shed early gains to finish down for the week - For the week the Dow Jones Industrials fell 220 points or 2.3%, closing at 9,254. The broader S&P 500 fell 18 points, or 1.8%, to close at 989. The NASDAQ Composite dropped 64 points, or 4.2%, to close at 1,441. -------------------------------------------------------------- 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