Financials and Industrials led the market higher in yesterday’s trade on the back of a better than expected new home sales number and a solid quarter from FDX. The median number of months a new home has been for sale dropped to 12.4 in June vs. 14.1 in May. Residential Construction shares were up 3.3% on the session with HOV up 7.7% and BZH up 6.4%. We’ll get more color on this volatile space as the builders start to roll out earnings in the coming weeks (MTH 7/27 and BHS 7/30 will report this week ). AEC reported 21c a share v. 20c last night and physical occupancy was 96.6% at the end of Q2 as compared with 95.4% at the end of Q2 of 2009. SLG  reported $1.02 v. Reuters $1.01 on revenues of $259.7M v. Reuters $228.6M. LRY reported $0.67 vs. Reuters $0.66 on revenues of 185M vs. estimates of $187M. BDN announced over 840k of leasing activity (new and renewed leases). GRT announced a 12.5M share secondary after the bell last night through GS and WFC. PCL reported 6c better on better revenues but guided lower for the 3^rd quarter and full year. The RMZ managed to close above 700 @ the 704.17 level---not really a technically significant level but psychologically it feels good to be back above 700 (June 21 was our last day with a 7 handle before the move down to 608). Feels like we go higher from here in the RMZ. Earnings today: ACC, BXP, CHH, DRH, KIM, MTH, SKT, and TCO.