US 10YR FUTURE TECHS: (Z5) Corrective Pullback Extends

The dollar dips slightly as President Trump appears to suggest in a cabinet meeting press conference that the administration could nominate Stephen Miran to "fired" Governor Cook's Board position (expiring in 2038), instead of ex-Gov Kugler's vacant spot (whose term ends in January before requiring renewal). He also makes it clear the he is looking to have a "majority" on the Fed Board "very shortly", with the aim to bring down interest rates:

• "We have we just put a very good man in that in one position. We might switch him to the other... longer term and pick somebody else. But we're very happy with the person we have in there, and we'll have a majority very shortly. So that'll be great. Once we have a majority. And housing is going to swing and it's going to be great. People are paying too high an interest rate. That's the only problem with housing. We have to get the rates down a little bit. And when we do, it's going to be a tremendous difference."
• Re Cook's replacement: "We have some very good people for that position, and I think we have some very good people we’re down to." As for her challenging being "fired", Trump says that Cook "seems to have had a refraction" and says that he is prepared for a legal fight.

• Crude came under pressure on Tuesday, fully unwinding Monday’s gains, as oil markets remain focussed on Russian oil supply amid laboured peace efforts.
• WTI Oct 25 is down by 2.4% at $63.3/bbl.
• On the bearish side, Trump’s 50% tariffs on India for buying Russian oil come into effect on Wednesday while Indian buying shows signs of resuming.
• Crude arrivals into India will likely increase in September and October, driven by higher inflows of Russian crude, Vortexa reports. This could signal that secondary Russian oil sanctions may do little to dent buying.
• A bear cycle in WTI futures remains intact, with initial support at $61.29, the Aug 13 low, which was recently pierced. A continuation lower would open $57.71, the May 30 low.
• Key short-term resistance has been defined at $69.36, the Jul 30 high.
• Meanwhile, spot gold has risen by 0.5% to $3,384/oz, taking total gains from last week’s low to over 2%.
• The move comes amid a further dip in the US dollar today, following headlines surrounding the uncertain future of Fed Governor Lisa Cook.
• The medium-term trend condition in gold remains bullish and moving average studies remain in a bull-mode position, highlighting a dominant uptrend.
• The sideways direction that has been in place since the April peak appears to be a pause in the uptrend. A continuation of gains would open $3,439.0, the Aug 23 high.

• Stocks have inched mildly higher late Tuesday, top end of narrow session ranges on quiet late summer trade. Currently, the DJIA trades up 35.31 points (0.08%) at 45319.15, S&P E-Mini Future up 10 points (0.15%) at 6465.25, Nasdaq up 40.4 points (0.2%) at 21489.94.
• Industrials, Health Care and Information Technology sector shares continued to lead gainers in the second half:  Boeing +3.16%, GE Vernova +2.74%, Southwest Airlines +2.40%, Howmet Aerospace +2.39% and General Electric +2.02%.
• The Health Care sector was largely buoyed by pharmaceuticals: Eli Lilly & Co +4.51%, Regeneron Pharmaceuticals +2.10%, Humana Inc +0.96% and UnitedHealth Group +0.91%.
• Leading tech stocks included: Leading tech stocks: QUALCOMM +2.01%, Palantir Technologies +1.82%, Advanced Micro Devices +1.81% and Monolithic Power Systems +1.45%.
• On the flipside, Energy and Communication Services shares underperformed in late trade: Paramount Skydance -4.01%, Charter Communications -2.39%, Fox Corp -1.74% and AT&T -1.46%.
• Energy stocks weighed by a drop in crude prices (WTI -0.77 at 64.03): Halliburton -1.99%, Devon Energy -1.65%, Diamondback Energy -1.49% and ConocoPhillips -1.44%.