Community Bank of San Joaquin Trust and Investment Telegram November 1, 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 mostly weaker than expected, unemployment rate is an exception - Third Quarter US GDP expanded by 3.1%, slower than the 3.7% consensus estimate among economists. Initial measurements show almost all of the growth came from the consumer. A wider trade deficit and declining commercial construction negatively impacted the figure. - The unemployment rate rose to 5.7% in October, under economists' 5.8% expectation. Payrolls declined by 5,000 after losing a revised 13,000 in September. - Consumer Confidence fell to 79.4 in October, the lowest level in about nine years. - Personal incomes grew 0.4% in September after growing a revised 0.3% in August. Personal spending fell 0.4%, more than economists' estimates of a 0.2% decline. - The ISM Manufacturing Index slipped to 48.5 in October, just short of economists' expectations for a reading of 49. Readings below 50 indicate a contraction in manufacturing activity. - Construction spending increased in September by 0.6%, beating estimates for 0.1% growth. Construction on new single-family homes grew 1.8%, the highest increase on record at the Commerce Department. - The third quarter Employment Cost Index grew 0.8%, slower than the 0.9% economists had expected. - Initial jobless claims jumped to 410,000, more than the 400,000 expected for the week. The employment picture appears to have weakened over the past two months (October/September) as claims have averaged 413,000 versus the average of 392,000 from the previous two-month period (August/July). -------------------------------------------------------------- Bond Market Comments * Bond yields decline - For the week, the 30-year Treasury bond's yield fell 5 basis points to close at 5.03%. The 10-year Treasury note's yield fell 10 basis points to close at 3.99%. -------------------------------------------------------------- Stock Market Comments * Stocks continue to rally, Dow Industrials post second best October on record - For the week the Dow Jones Industrials rose 74 points or 0.9%, closing at 8,518. The broader S&P 500 rose 3 points, or 0.4%, to close at 901. The NASDAQ Composite climbed 30 points, or 2.2%, to close at 1,361. -------------------------------------------------------------- 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