Community Bank of San Joaquin Trust and Investment Telegram October 4, 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 * Employment data baffles economists for second consecutive month - Unemployment fell to 5.6% in September, shocking economists expecting an increase to 5.9%. The lower rate conflicted with the company payrolls report showing that company payrolls contracted by 43,000 during September. Conflicts between the studies is possible as the unemployment rate is based on a survey of 60,000 households while the payrolls figure is based on data provided by 300,000 businesses. - Personal incomes grew 0.4% in August, spending expanded 0.3%. Economists were expecting 0.5% growth in both figures. Personal incomes are now 3.5% higher than one year ago. - The ISM Manufacturing Index fell to 49.5 in September; the index has been over 50, indicating expansion, since February. Economists were expecting a reading of 50.9. The ISM Service Index rose to 53.9 in September, beating expectations of a 51.5 reading. - August factory orders were flat from the previous month. Economists were expecting orders to fall 0.3%. Year to date, factory orders are 2.3% lower than the same eight months in 2001. - Construction spending declined 0.4% in August, more than the 0.2% contraction economists were expecting. - Initial jobless claims grew to 417,000 this past week. New job cuts at companies like SBC Communications, Fidelity Investments, and Bombardier likely added to the figure. -------------------------------------------------------------- Bond Market Comments * Bond yields rally for their first week in over a month - For the week, the 30-year Treasury bond's yield rose 4 basis points to close at 4.72%. The 10-year Treasury note's yield rose 1 basis point to close at 3.67%. -------------------------------------------------------------- Stock Market Comments * Earnings warnings, mixed data lead stocks lower - For the week the Dow Jones Industrials fell 173 points or 2.2%, closing at 7,528. The broader S&P 500 fell 27 points, or 3.2%, to close at 801. The NASDAQ Composite dropped 59 points, or 4.9%, to close at 1,140. -------------------------------------------------------------- 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