Community Bank of San Joaquin Trust and Investment Telegram September 13, 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 * Consumer data mixed, employment and prices weaken, inventories rebound - August retail sales exceeded economists' expectations by growing 0.8%. Excluding autos, the figure was up 0.4%, also well ahead of expectations for 0.1% growth. Sales in furniture and home products grew 1.7%. Sporting goods, hobby, books, and music stores climbed 2.9%. - Consumer credit grew $10.8 billion, a 7.6% annual pace, in July. The growth follows a gain of $8.9 billion in June and marks the largest monthly gain since the 2001 November rebound. - The University of Michigan Consumer Sentiment Index dipped for a fourth straight month to 86.2. Economists attributed the decline to a growing number of job cut and war headlines. - Producer prices remained unchanged in August following a decline of 0.2% in July. Excluding food and energy, the core index fell for a second consecutive month declining 0.1%. Core prices are now down 0.3% over the past 12 months, the largest year-over-year decline on record. - Wholesale inventories rose 0.6% in July following a 0.4% increase in June. This is the first series of back-to-back monthly gains since December 2000 and the largest single month gain since June 2000. Despite the growth, the inventory-to-sales ratio, a measure of how long goods stay unsold, remained at a record low 1.23 months. - Initial jobless claims surged to 426,000, marking the fourth rise in the past five weeks. The number of claims is the largest since late April, casting doubt on the recent unemployment rate reading of 5.7%. -------------------------------------------------------------- Bond Market Comments * Bond yields post fourth consecutive week of declines - For the week, the 30-year Treasury bond's yield fell 9 basis points to close at 4.77%. The 10-year Treasury note's yield fell 11 basis points to close at 3.91%. -------------------------------------------------------------- Stock Market Comments * Stocks dip lower over the week - For the week the Dow Jones Industrials fell 115 points or 1.4%, closing at 8,313. The broader S&P 500 fell 4 points, or 0.5%, to close at 890. The NASDAQ Composite dropped 4 points, or 0.3%, to close at 1,291. -------------------------------------------------------------- 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