Community Bank of San Joaquin Trust and Investment Telegram December 20, 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 is positive, inflation still in check: - Third quarter U.S. GDP growth was measured at 4.0% in its third revision. The figure matched economists' expectations. The revised report, consistent with the one issued earlier, showed that growth was predominantly consumer driven. - The index of leading economic indicators increased by 0.7% in November. The rise beat expectations for 0.6% growth and was the biggest monthly gain made this year. Leading indicators, a Conference Board index, is designed to project the direction of the economy over the next three to six months. - U.S. industrial production expanded for the first time in four months, growing 0.1% in November. Economists were expecting 0.2% growth. Capacity utilization was measured at 75.6%, slightly up from the previous measure of 75.5%. - The U.S. Consumer Price Index rose 0.1% in November, the slowest pace in four months. Economists were expecting an increase of 0.2%. Falling prices for clothing and autos greatly offset the rising costs of education and healthcare. - Housing starts grew at a 1.697 million unit annual pace in November. Approximately 1.576 million homes were started in the first 11 months of 2002 compared to 1.498 million over the same period last year. - Initial jobless claims fell less than expected to 433,000. Economists were anticipating a decline to 400,000. The four-week moving average grew to 400,750. -------------------------------------------------------------- Bond Market Comments * Bond yields slipped as tensions in the Middle East grew: - For the week, the 30-year Treasury bond's yield fell 5 basis points to close at 4.90%. The 10-year Treasury note's yield fell 11 basis points to close at 3.96%. -------------------------------------------------------------- Stock Market Comments * Stocks posted gains after a big Friday rally: - For the week the Dow Jones Industrials rose 78 points or 0.9%, closing at 8,512. The broader S&P 500 rose 6 points, or 0.7%, to close at 896. The NASDAQ Composite climbed 1 point, or 0.01%, 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