Community Bank of San Joaquin Trust and Investment Telegram September 27, 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 is mixed, 2nd Quarter GDP revised up as US trade gap narrows - Second quarter GDP was revised up to 1.3% from the previous month's measure of 1.1%. The upward revision was unexpected, as economists were anticipating no change. The narrowing trade deficit accounted for the revision as most other inputs saw little change. - Leading indicators declined more than expected in August. The index slipped 0.2% versus economists' expectations for a 0.1% decrease. July's previous measure of a 0.4% decline was revised up to a dip of 0.1%. August marks the third consecutive month of negative growth in leading indicators. - Durable goods orders fell 0.6% in August. Economists were expecting a larger contraction of 3.0% following July's nine-month-high revised expansion of 8.6%. Declining orders for machinery, computers, and cars overcame the increased demand for commercial aircraft and electrical equipment. - September consumer confidence slipped less than expected to 93.3. Economists were anticipating the index would fall to 92.1. - New home sales continued at a record annual pace of 996,000 in August after July's previous record was revised down to a 977,000 annual pace. Home resales declined 1.7% in August to a 5.37 million unit annual pace. Last week, the average 30-year mortgage stayed near a 30-year low at 6.05%. - Initial jobless claims dropped by 24,000 to 406,000 on the week. This marks the fifth consecutive week the figure has been over 400,000 implying that unemployment is growing. -------------------------------------------------------------- Bond Market Comments * Bond yields extend their weekly declines - For the week, the 30-year Treasury bond's yield fell 6 basis points to close at 4.69%. The 10-year Treasury note's yield fell 11 basis points to close at 3.68%. -------------------------------------------------------------- Stock Market Comments * Stocks slip lower over the week - For the week the Dow Jones Industrials fell 285 points or 3.6%, closing at 7,701. The broader S&P 500 fell 18 points, or 2.1%, to close at 827. The NASDAQ Composite dropped 22 points, or 1.8%, to close at 1,199. -------------------------------------------------------------- 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