/STOCKS: LBBW's Karl Haeling said...........>

US TSYS: /STOCKS: LBBW's Karl Haeling said "trading activity picked up in U.S.

financial markets at the start of the new month" Tues "with Treasuries and

equities both rallying. Treasuries were boosted by weaker-than-expected July car

sales and a $1 selloff in crude oil prices." 10Y note ylds ended down 4bps at

2.25%, lowest yld since July 25," he said. 

- He adds DJIA stock avg "hit record highs for the 5th consecutive" day while

"other major stock indices gained moderately. Underlying bullish momentum and

generally positive corporate earnings reports provided support." DJIA rose 73

pts or 0.33% "to close within 36 pts of 22,000 after trading as high as 21,991,"

he said. "Fincl shares led the rally amid expectations for reduced regulatory

pressures as Bloomberg reported that Wall Street regulators have agreed to

rewrite the Volcker Rule, according to 3 people familiar with the matter."

- He noted Treasures prices "weakened early" then "rallied when General Motors

car sales in July fell 15% to their lowest level since May 2016, Ford's sales

had their biggest monthly decline since October and Fiat Chrysler sales had

their 2nd biggest drop of the year."