Community Bank of San Joaquin Trust and Investment Telegram September 6, 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 * Positive outweighs the negative in this week's economic data - Surprising economists expecting an increase to 6%, the unemployment rate dropped to 5.7% in August. Companies have now added to payrolls for four consecutive months. July payroll increases were revised up as the service sector added a shocking 108,000 jobs. Services again added 72,000 in August. Factories shed 68,000 jobs in August but compensated by increasing weekly hours and overtime for existing employees. - Productivity, measuring the amount of work done per person, was revised up to a 1.5% annualized gain in the second quarter. Unit labor costs, measuring the amount paid to workers per unit of production, was revised down to a 2.1% annualized increase for the second quarter. - July factory orders were up 4.7% from June, the largest monthly gain in nine months. While much of the increase came from autos, orders still grew 1.8% excluding transportation. - The ISM Manufacturing Index remained unchanged at 50.5 during August. Economists were expecting the index to grow to 51.8. The ISM Services Index declined to 50.9, disappointing economists anticipating a reading of 54. ISM measurements over 50 indicate expansion, under 50 indicate contraction. - Construction spending remained unchanged in July, beating economists' estimates for a 0.4% decline. - Initial jobless claims fell to 403,000. Economists were looking for the number to decline to 395,000. This is the second straight week the number has been over 400,000. The four-week average now stands at 400,000. -------------------------------------------------------------- Bond Market Comments * Bond yields continue to decline - For the week, the 30-year Treasury bond's yield fell 7 basis points to close at 4.86%. The 10-year Treasury note's yield fell 2 basis points to close at 4.02%. -------------------------------------------------------------- Stock Market Comments * Stocks end the week down - For the week the Dow Jones Industrials fell 236 points or 2.7%, closing at 8,427. The broader S&P 500 fell 22 points, or 2.4%, to close at 894. The NASDAQ Composite dropped 20 points, or 1.5%, to close at 1,295. -------------------------------------------------------------- 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