Community Bank of San Joaquin Trust and Investment Telegram December 27, 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 as consumer spending firms and business spending cools: - Personal incomes grew 0.3% in November, beating expectations for 0.2% growth. - Personal spending rose 0.5% in November, in-line with expectations. Spending grew at its fastest pace in four months on top of October's 0.4% gain. Consumer spending accounts for about two-thirds of the U.S. economy. - The University of Michigan's Consumer Sentiment Index climbed to 86.7 in December, slightly higher than economists' average estimate of 86.6. The index has rebounded sharply off a nine-year low of 80.6 set in October. - New homes sales unexpectedly surged by 5.7% in November, growing at a record annual pace of 1.069 million units. November's record pace exceeded that set in September of 1.053 million units. Analysts are expecting 969,000 new homes will be sold in 2002, outpacing last year's record 908,000 sales. - Durable goods orders slipped 1.4% in November, surprising economists anticipating 0.8% growth. The report soured analyst expectations that companies were already beginning to boost spending on equipment. Excluding transportation items, the index fell 1.3%. - Initial jobless claims plunged by 60,000 to 378,000. Economists were expecting a more modest decline to 405,000. The less volatile four-week moving average grew to 404,500 from 402,000. Year-to-date in 2002, the average weekly claims now stand at 404,700. -------------------------------------------------------------- Bond Market Comments * Bond yields fall as global tensions rise: - For the week, the 30-year Treasury bond's yield fell 12 basis points to close at 4.78%. The 10-year Treasury note's yield fell 14 basis points to close at 3.82%. -------------------------------------------------------------- Stock Market Comments * Stocks slip for third consecutive week: - For the week the Dow Jones Industrials fell 208 points or 2.4%, closing at 8,304. The broader S&P 500 fell 20 points, or 2.3%, to close at 875. The NASDAQ Composite dropped 15 points, or 1.1%, to close at 1,348. -------------------------------------------------------------- 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