Community Bank of San Joaquin Trust and Investment Telegram July 26, 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 suggests recovery is still sluggish, employment picture improving - New orders for durable goods dropped by 3.8% in June, the largest decline in seven months. Economists were expecting orders to grow by 0.6%. Slower business investment is likely the cause of the decline as orders fell for computers, machinery, and communications equipment. Deteriorating automobile orders also contributed to the weakness. Orders for defense equipment increased 26.8% on the month, the only category posting a gain. - The University of Michigan Consumer Sentiment Index fell to 88.1 in July beating economists' expectations of 86.5. The Index measures the attitudes of consumers who make up approximately two-thirds of the economy. - Sales of previously owned homes, 85% of the total housing market, fell 11.7% in June. The decline is the largest since April 1995. Resales are still projected to outshine last year's record pace. Over the same period, sales of new homes grew at a record annual pace of 1.001 million. - Labor costs increased 1% during the second quarter compared to 0.8% in the first quarter. The increase was attributed to both wage growth and pricier health care benefits. - Initial jobless claims fell to 362,000, down from a revised 383,000 the previous week and the lowest level since February 2001. Economists were expecting jobless claims to increase to 385,000. Economists take readings below 400,000 as a signal of job creation. -------------------------------------------------------------- Bond Market Comments * Bond yields slip lower - For the week, the 30-year Treasury bond's yield fell 1 basis point to close at 5.31%. The 10-year Treasury note's yield fell 13 basis points to close at 4.39%. -------------------------------------------------------------- Stock Market Comments * Dow and S&P rebound, NASDAQ continues to decline - For the week the Dow Jones Industrials rose 245 points or 3.1%, closing at 8,264. The broader S&P 500 rose 5 points, or 0.6%, to close at 853. The NASDAQ Composite dropped 57 points, or 4.3%, to close at 1,262. -------------------------------------------------------------- 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