Community Bank of San Joaquin Trust and Investment Telegram August 23, 2002 IN THIS ISSUE: 1. Economic Highlights 2. Bond Market Comments 3. Stock Market Comments 4. Legal Disclaimer 5. Subscribe / Unsubscribe -------------------------------------------------------------- Economic Highlights * Economic data point to a continued sluggishness in the recovery - Leading indicators declined 0.4% in July. Leading the figure lower were weaker performing stocks and slipping consumer confidence. Stocks rallied on the news as it beat economists' expectations for a 0.5% decline. The index received a boost from growth in money supply, capital and consumer goods orders, and falling jobless claims. - The US government budget deficit for July was $29.2 billion, compared to a surplus of $2.8 billion a year ago. Year to date, the budget is running a $147.2 billion deficit compared to a $171.8 billion surplus over the same period a year ago. The government currently expects to run a deficit of $165 billion for the year, which would be the largest deficit since 1994. The growing deficit is a result of a 10.2% slide in government revenue with a spending increase of 9.4% so far this year. - Initial jobless claims were reported a little higher than expected at 389,000 for the week. Much of the new weakness in claims came from layoffs at Cingular Wireless and American Airlines as they attempt to cut costs. For the week ended August 10, the number of people continuing to collect benefits totaled 3.52 million. -------------------------------------------------------------- Bond Market Comments * Bond yields sink lower - For the week, the 30-year Treasury bond's yield fell 7 basis points to close at 5.03%. The 10-year Treasury note's yield fell 10 basis points to close at 4.23%. -------------------------------------------------------------- Stock Market Comments * All major stock indices post weekly gains - For the week the Dow Jones Industrials rose 95 points or 1.1%, closing at 8,873. The broader S&P 500 rose 12 points, or 1.3%, to close at 941. The NASDAQ Composite climbed 20 points, or 1.4%, to close at 1,381. -------------------------------------------------------------- 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