A market driven by emotions needs personalities to carry the rally baton. This week, the biggest names in investing have held sway, including Powell yesterday and Zuckerberg today.

However, the overall market narrative has three parts, including the notion that the Fed will come to the rescue as economic data points to a wilting economy.

The Economy

Initial jobless claims continue to spike higher (can’t blame a hurricane for this move).

On the other hand, construction spending fell for the second straight month in June (May saw an even lower revision). The manufacturing PMI is a cause for concern, with all indicators pointing towards a negative trend.

Construction

Manufacturing

Buy the dip has been the mantra that has allowed mere mortals of Main Street to run circles around the brilliance of Wall Street.

Lower yields will shake loose the $6.1 trillion in money markets that will find a new home in stocks. 

These boxes were checked off at the opening bell, but the early rally faded quickly. That's because there is a flip side to these drivers, and it's clear they're putting investors on edge.

Too Cool For School

It goes back to yesterday’s nonchalant attitude of Jay Powell.  I get the Fed would rather be too late than too early when it comes to rate cuts, but the street is pricing in a soft landing and today’s data is anything but soft.