Community Bank of San Joaquin Trust and Investment Telegram August 2, 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 * Weaker economic data suggests the recovery is still mild - GDP expanded at a 1.1% pace in the second quarter as the growing trade deficit and lower consumer spending slowed growth. The GDP report also showed that the recession in 2001 was deeper than previously measured. The economy shrank at a 0.8% pace rather than growing 0.1% between January and September 2001. - June factory orders fell 2.4%, the largest drop this year. Orders for machinery, computers, metals, and commercial aircraft posted the biggest declines. Economists expected a 2% decline. - The ISM Manufacturing Index fell to 50.5 in July from 56.2 in June. Index levels over 50 indicate an expansion. Economists were anticipating a lesser decline to 55. - Spending on construction unexpectedly fell 2.2% in June. Economists expected a 0.3% rise. - Personal income grew 0.6% in June, faster than the 0.5% expected. Personal spending increased 0.5%, just under the 0.6% expected by economists. Disposable income, wages, and salaries all jumped 0.6%, the largest increase since January 2001. - Consumer confidence fell to 97.1 in July. Economists were expecting a reading of 101. Many of the people interviewed in the survey pointed to the drop in stock prices and a sluggish labor market as hurdles to financial security. - The unemployment rate remained at 5.9% in July, in line with expectations. The labor department reported that payrolls grew by 6,000 over the month. - Initial jobless claims rose by 20,000 to 387,000 marking the first increase in three weeks. -------------------------------------------------------------- Bond Market Comments * Bond yields slip as Goldman forecasts Fed Reserve rate cut - For the week, the 30-year Treasury bond's yield fell 9 basis points to close at 5.22%. The 10-year Treasury note's yield fell 9 basis points to close at 4.30%. -------------------------------------------------------------- Stock Market Comments * Major indices end the week mixed - For the week the Dow Jones Industrials rose 49 points or 0.6%, closing at 8,313. The broader S&P 500 rose 11 points, or 1.3%, to close at 864. The NASDAQ Composite dropped 14 points, or 1.1%, to close at 1,248. -------------------------------------------------------------- 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