Community Bank of San Joaquin Trust and Investment Telegram November 8, 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 mixed, Fed surprises with steeper rate cut - The Federal Reserve voted unanimously to cut both the fed funds and discount lending rates by 50 basis points. The fed funds rate is now 1.25% and the discount rate is 0.75%. Most economists were expecting a smaller cut of 25 basis points. The Fed now sees balanced risks between inflation and economic weakness. - Productivity rose at a 4% annual pace during the third quarter. Over the past 12 months productivity is up 5.3% matching an increase at the end of the third quarter of 1983 that was the largest since 1973. - The October ISM Service Economy Index fell to 53.1 from 53.9 in September. The index has remained higher than 50, implying expansion, for nine consecutive months. - Factory orders slipped 2.3% in September beating economists' expectations for a 3.0% drop. Diminished bookings in commercial aircraft, machinery, and communications drug the figure lower. - Wholesale inventories climbed 0.5% in September exceeding analysts' expectations for 0.2% growth. The largest inventory building occurred in autos and petroleum. - Consumer borrowing, excluding mortgages, grew at a 6.9% annual rate in September. Consumers added another $10 billion in personal debt, more than the $5.5 billion expected. - Initial jobless claims fell to 390,000 from 410,000 the prior week. Economists were expecting claims would slip to 400,000. The less volatile four-week moving average increased slightly to 402,000 from 401,750. -------------------------------------------------------------- Bond Market Comments * Bond yields drop as Fed cuts rates - For the week, the 30-year Treasury bond's yield fell 27 basis points to close at 4.77%. The 10-year Treasury note's yield fell 15 basis points to close at 3.86%. -------------------------------------------------------------- Stock Market Comments * Stock indices end the week mixed - For the week the Dow Jones Industrials rose 19 points or 0.2%, closing at 8,537. The broader S&P 500 fell 6 points, or 0.7%, to close at 895. The NASDAQ Composite dropped 1 point, or 0.1%, to close at 1,359. -------------------------------------------------------------- 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