Community Bank of San Joaquin Trust and Investment Telegram July 5, 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 * Economic data continues to support recovery - The US Unemployment Rate grew to 5.9% in June as economists had expected. Much of the increase came from slower job creation. The number of people unemployed for six months or greater grew to 1.67 million, the highest since May 1994. - Initial jobless claims fell to 382,000 for the week, the lowest since the recession began in March 2001. Economists were expecting a milder decline to 385,000. New jobless claims have been held below 400,000 for five straight weeks now. - Factory orders increased more than expected in May, growing at 0.7%. Economists were only expecting a 0.5% rise. Much of the recovery is being credited to decreased inventories and better inventory management. The inventory-shipments ratio, a figure measuring the speed with which a product is sold after creation, fell to a record low 1.32 months. - Manufacturing surged in June as the ISM Manufacturing Index grew to 56.2. Economists were anticipating a reading of 55.5. Anything over 50 implies expansion. The index has now remained over 50 for five consecutive months. - Services grew slower than expected in June as the ISM Service Index declined to 57.2 from 60.1 the previous month. The index has been over 50, implying expansion, since February. -------------------------------------------------------------- Bond Market Comments * Bond yields rebound slightly - For the week, the 30-year Treasury bond's yield rose 2 basis points to close at 5.53%. The 10-year Treasury note's yield rose 6 basis points to close at 4.86%. -------------------------------------------------------------- Stock Market Comments * Major indices post mixed returns - For the week the Dow Jones Industrials rose 137 points or 1.48%, closing at 9,380. The broader S&P 500 fell 1 point, or 0.1%, to close at 989. The NASDAQ Composite dropped 15 points, or 1.01%, to close at 1,448. -------------------------------------------------------------- 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