Community Bank of San Joaquin Trust and Investment Telegram July 12, 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 * Consumer confidence slips, stocks follow suit - Retail sales grew 1.1% in June beating estimates for 0.7% growth. Climbing incomes and low interest rates combined with discounts by retailers helped keep buyers active. Purchases made by consumers, including restaurant meals, cars, and clothing make up about one-third of the economy. - Consumer credit increased by $9.5 billion in May, the most since November 2001. Economists were expecting a milder rise of $6.5 billion. Much of the consumer-borrowing boom is still being fueled through 0% financing by automakers. - The July University of Michigan Consumer Confidence Index fell to 86.5, an eight-month low. Much of the decline was attributed to falling stock values and continued weakness in employment. - Small increases in demand for goods pushed the Producer Price Index higher in June by 0.1%. Economists were expecting no change for the month. The continuing mild price growth signals that inflation is still in check and eases pressure on the Fed to raise interest rates. - Initial jobless claims grew by 16,000 to 403,000 for the week. This marks the first increase in unemployment claims in three weeks. Some of the new job loss is attributed to auto plant shut-downs at Ford and General Motors who closed at least sixty-nine plants for two weeks. -------------------------------------------------------------- Bond Market Comments * Bond yields shrank at their fastest weekly pace this year. - For the week, the 30-year Treasury bond's yield fell 19 basis points to close at 5.34%. The 10-year Treasury note's yield fell 27 basis points to close at 4.58%. -------------------------------------------------------------- Stock Market Comments * Major stock indices decline on weakening consumer data - For the week the Dow Jones Industrials fell 695 points or 7.4%, closing at 8,685. The broader S&P 500 fell 68 points, or 6.8%, to close at 921. The NASDAQ Composite dropped 75 points, or 5.2%, to close at 1,374. -------------------------------------------------------------- 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