Community Bank of San Joaquin Trust and Investment Telegram December 13, 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 reveals consumers still spending, inflation in check: - Retail sales grew 0.4% in November, in-line with expectations. Excluding autos, sales expanded 0.5%, dwarfing estimates for 0.2% growth. November's growth, excluding autos, comes on top of an upwardly revised October figure of 0.8%. Increased purchases of furniture, food, and electronics contributed much to the figure. - The Labor Department's Producer Price Index declined 0.4% in November. The figure surprised economists anticipating no change. Falling prices for gasoline, computers, and cars drove the index lower. The Producer Price Index has grown at a 1.3% annual pace year-to-date. The core index, excluding food and energy, has declined at a 0.1% annual rate over the same time. - The Federal Reserve voted unanimously to leave short-term interest rates unchanged during their meeting this week. They are maintaining a neutral bias. - U.S. wholesale inventories unexpectedly fell 0.3% in October. Economists were expecting growth of 0.2%. Cutbacks in wholesaler stockpiles for clothing, computers, and business equipment contributed to the decline. - Business inventories expanded 0.2% during October, in-line with expectations. - The University of Michigan Consumer Sentiment Index rose to 87 in December from a prior reading of 84.2 in November. Economists were expecting a measurement of 85. - Initial jobless claims surged by over 80,000 to 441,000. Economists were anticipating a much smaller increase to 380,000. The figure is the highest in eight months as layoffs at Aetna, Nacco Industries, Maxtor, and Humana combined with slow hiring. -------------------------------------------------------------- Bond Market Comments * Bond yields virtually unchanged: - For the week, the 30-year Treasury bond's yield fell 2 basis points to close at 4.96%. The 10-year Treasury note's yield fell 1 basis point to close at 4.07%. -------------------------------------------------------------- Stock Market Comments * Stocks slip as geopolitical tensions intensify: - For the week the Dow Jones Industrials fell 212 points or 2.5%, closing at 8,434. The broader S&P 500 fell 23 points, or 2.5%, to close at 890. The NASDAQ Composite dropped 60 points, or 4.2%, to close at 1,363. -------------------------------------------------------------- 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