Community Bank of San Joaquin Trust and Investment Telegram October 18, 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 shows weakness in manufacturing, strength in housing - Industrial production slowed for a second consecutive month in September. Production declined 0.1%, below economists' expectations for 0.1% growth. Decreases in motor vehicle, appliance, and communications production led the figure lower. - Capacity utilization, measuring the portion of industrial capacity currently in use, fell to 75.9% in September. The figure is still well below the average 81.8% rate of the 10-year economic expansion ending in March 2001. - September housing starts surged 13.3% from August, growing at a 1.843 million unit annual pace. This month's rate is the fastest pace on record at the Commerce Department since June 1986. Economists were anticipating a tamer annual rate of 1.669 million units. - U.S. Business inventories fell 0.1% in August, surprising economists expecting 0.2% growth. Sales grew 0.2% over the same period driving the inventory-to-sales ratio to a record low 1.34 months. - The Consumer Price Index grew 0.2% in September, in-line with estimates. Increases in the cost of energy, healthcare, and cars led the way. Year-to-date through September, CPI has grown at a 2.6% annual rate compared to 2.7% over the same period a year ago. - Initial jobless claims grew by 22,000 to a total of 411,000 for the week. Economists were expecting claims to total only 399,000. New job cuts at JPMorgan and Lucent contributed, as well as companies like Intel following through on past announcements to cut jobs. -------------------------------------------------------------- Bond Market Comments * Bond yields surge - For the week, the 30-year Treasury bond's yield rose 26 basis points to close at 5.07%. The 10-year Treasury note's yield rose 33 basis points to close at 4.11%. -------------------------------------------------------------- Stock Market Comments * Stocks post second consecutive week of gains - For the week the Dow Jones Industrials rose 472 points or 6.0%, closing at 8,322. The broader S&P 500 rose 49 points, or 5.9%, to close at 884. The NASDAQ Composite climbed 77 points, or 6.4%, to close at 1,288. -------------------------------------------------------------- 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