Community Bank of San Joaquin Trust and Investment Telegram August 30, 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 remains mixed, the recovery continues to inch forward - Durable goods orders, defined as big-ticket items made to last at least three years, surged 8.7% in July. Economists were only expecting a 1.5% gain. Excluding transportation, the index was up 3.9% suggesting the expansion also resulted from gains in business investment in equipment. Leading the way were large gains in the demand for computers, cars, and aircraft. - The latest revision for second quarter GDP showed 1.1% annualized growth, no change from the previous measurement. - Personal incomes were unchanged in July after rising by an upwardly revised 0.7% in June. Economists were expecting an increase of 0.3%. - Personal spending jumped 1% in July beating expectations for 0.8% growth. Much of the surge in spending comes as auto manufacturers re-introduce 0% financing and retailers increase the number of sale items. - Home resales grew 4.5% in July to an annual pace of 5.33 million units. Previously owned home sales are expected to reach 5.44 million this year, breaking last year's record. New home sales expanded 6.7% to a new record annual pace of 1.017 million units. Currently, 953,000 new homes are expected to be sold in 2002, also eclipsing 2001's record 908,000 units. - Consumer confidence dropped to 93.5 in August from an upwardly revised 97.4 in July. Economists were expecting a milder decline to 97. - Initial jobless claims rose to a two-month high 403,000. Economists were expecting claims to drop to 385,000 for the week. -------------------------------------------------------------- Bond Market Comments * Bond yields dip lower - For the week, the 30-year Treasury bond's yield fell 11 basis points to close at 4.93%. The 10-year Treasury note's yield fell 4 basis points to close at 4.19%. -------------------------------------------------------------- Stock Market Comments * Major indices retreat after several consecutive weeks of gains - For the week the Dow Jones Industrials fell 209 points or 2.4%, closing at 8,664. The broader S&P 500 fell 25 points, or 2.6%, to close at 916. The NASDAQ Composite dropped 66 points, or 4.7%, to close at 1,315. -------------------------------------------------------------- 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