Community Bank of San Joaquin Trust and Investment Telegram September 20, 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 weakens, points to a continued sluggishness in the recovery - Industrial production slipped 0.3% in August, surprising economists who were anticipating 0.2% growth. Capacity utilization fell for the first time this year to 76%. Much of the drop came from a 2.5% decline in utility production. - Business inventories expanded for a third consecutive month in July, growing 0.4%. Much of the inventory rebuilding came from car dealers adding 1.8%. North American auto sales reached a year high 18.7 million vehicle sales pace in August, sparking dealers to boost stockpiles. - Consumer prices grew at a greater-than-expected 0.3% in August. Growing costs for clothing, tobacco, and energy contributed to the gain in prices. Economists were expecting a milder 0.2% increase. Consumer prices grew at an annual pace of 2.7% for the eight months ending in August. - Housing starts unexpectedly fell 2.2% in August. Economists were anticipating a rise of 1.3%. Much of the decline came from a slump in construction in the Midwest where starts plunged 18.7% in August. The average 30-year mortgage in August was 6.22%. - The US trade gap surprised economists by narrowing to $34.6 billion in July. Imports fell by 1% while exports grew 1.3%. - Initial jobless claims fell slightly to 424,000. The figure was still well above the 400,000 mark, implying a weakening employment marketplace. New layoffs at telecoms and the reduction in home construction pushed claims higher. -------------------------------------------------------------- Bond Market Comments * Bond yields post weekly decline - For the week, the 30-year Treasury bond's yield fell 3 basis points to close at 4.74%. The 10-year Treasury note's yield fell 13 basis points to close at 3.78%. -------------------------------------------------------------- Stock Market Comments * Stocks lose ground over the week - For the week the Dow Jones Industrials fell 327 points or 3.9%, closing at 7,986. The broader S&P 500 fell 44 points, or 5.0%, to close at 845. The NASDAQ Composite dropped 70 points, or 5.4%, to close at 1,221. -------------------------------------------------------------- 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