The Stock markets begin the week sharply higher ahead of this week's big event, the 2-day Federal Open Market Committee meeting. The meeting will begin on Tuesday morning and will end with a monetary policy statement being delivered at 2:00pm ET on Wednesday. The meeting will be followed by a press conference by Fed Chairman Ben Bernanke at 2:30pm ET and he may calm the fears of tapering the current Bond purchase program.

In economic news, the New York State Empire Manufacturing Index unexpectedly jumpd by 7.84 point in May from the -1.4 reading registered in April. However, most of the components within the survey fell - new orders, shipments and the employment number. The optimism index for a six month outlook, also fell, suggesting that future conditions are weakening further.

The National Association of Home Builders (NAHB) reported today that it's Housing Market Index rose to 52 in June from 44 in May and above the 45 that was expected. It was the largest one month gain since August and September of 2002 and the best reading since April of 2006. The NAHB said that home builders "are experieincing some relief in the headwinds that are holding back a more robust recovery." The NAHB went on to say that with the low inventory of existiong homes, potential buyers are seeking out new homes.