Community Bank of San Joaquin Trust and Investment Telegram October 11, 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 borrowing eases, jobless claims post surprise drop - Consumer debt grew at the slowest pace in eight months during August. Expanding at a 2.9% annual pace, consumer credit added only $4.2 billion in August. Economists were expecting $10.9 billion in growth. Given that 77% of all mortgage applications last week were refinancings, many analysts think people are paying down consumer loans via lower-rate home equity loans. - September retail sales declined 1.2%, in-line with expectations. Much of the decline came from slowing auto sales. Excluding autos, sales were up 0.1%. - The University of Michigan Consumer Sentiment Index dropped to 80.4 in October, the lowest level since September 1993. Of the 500 households surveyed, job market weakness, lower stock prices, and a slower economic recovery were the leading contributors to lower sentiment. - Producer prices increased 0.1% in September. Economists were expecting growth of 0.2%. Declines in food and gasoline prices pushed the index lower than expected. - Wholesale inventories grew 0.2% in August, slower than economists' expectations for 0.3% growth. The slow inventory growth pushed the inventory-to-sales ratio to a record low 1.22 months. The ratio measures the average time a product sits on a store's shelf before being sold. Stockpiles are now down 4.2% from a year earlier. - Initial jobless claims shocked economists as 40,000 fewer people filed claims from the previous week. The 384,000 applications received over the week was the lowest number since early August. Economists were expecting about 410,000 claims. -------------------------------------------------------------- Bond Market Comments * Bond yields rally for second consecutive week - For the week, the 30-year Treasury bond's yield rose 9 basis points to close at 4.81%. The 10-year Treasury note's yield rose 11 basis points to close at 3.78%. -------------------------------------------------------------- Stock Market Comments * Stocks gain for first week in seven - For the week the Dow Jones Industrials rose 322 points or 4.3%, closing at 7,850. The broader S&P 500 rose 35 points, or 4.3%, to close at 835. The NASDAQ Composite climbed 71 points, or 5.8%, to close at 1,210. -------------------------------------------------------------- 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