Community Bank of San Joaquin Trust and Investment Telegram October 25, 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 * Manufacturer and consumer data weakens, home sales remain robust - The US index of leading economic indicators slipped 0.2% in September, declining for a fourth consecutive month. August's 0.2% decrease was revised to a lesser drop of 0.1%. Lower stock prices, greater jobless claims, and a drop in consumer optimism contributed to the decline. The number of homebuilding permits grew, providing a boost to the index. - Orders for durable goods decreased 5.9% in September bringing the total down to $167.6 billion. Slower bookings for airplanes, cars, and computers led the decline. Economists were expecting a much milder decline of 1.6%. Excluding transportation items, the index fell 1.0%. - The University of Michigan Consumer Sentiment Index fell to 80.6 in October from 86.1 in September. Economists had expected the index to fall to 81. October's reading was the lowest since 1993; drug lower by a weak job environment, lower stock prices, and war and sniper threats. - New homes sales grew at a record annual pace of 1.021 million in September. Sales are on pace to reach 957,000 for the year, eclipsing the record 908,000 sold in 2001. Economists were expecting sales to drop to 990, 000 in September. Existing home sales also topped estimates growing at a 5.4 million unit annual pace. - Initial jobless claims fell by 25,000 to 389,000 surprising economists expecting claims of 405,000. For the month of October, claims have averaged 397,300 per week compared to 424,500 in September. -------------------------------------------------------------- Bond Market Comments * Bonds relatively flat for the week - For the week, the 30-year Treasury bond's yield rose 3 basis points to close at 5.08%. The 10-year Treasury note's yield fell 1 basis point to close at 4.09%. -------------------------------------------------------------- Stock Market Comments * Stock indices gain for third consecutive week - For the week the Dow Jones Industrials rose 122 points or 1.5%, closing at 8,444. The broader S&P 500 rose 13 points, or 1.5%, to close at 898. The NASDAQ Composite climbed 43 points, or 3.4%, to close at 1,331. -------------------------------------------------------------- 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