Stocks rose broadly on Tuesday, with the Dow on track for its largest daily percentage advance since July, on reports euro zone countries will come to the aid of debt-stricken Greece. The Non-Issue of Greece dominated headlines last week, and this week talk of a half baked solution to the non-problem has given the market a new push forward, reality is it was a great opportunity for the seasoned investors to build on positions and make some money.

The U.S. dollar fell against the euro, boosting commodity prices and shares of natural resources companies.

A senior German ruling coalition source said euro zone governments have decided in principle to help Greece and that various options were being considered.

“I would see that as good news (for the stock market), knowing that there’s a backer there, that those nations will be able to back up the (Greek) debt,” said John O’Brien, senior vice president at MKM Partners LLC in Cleveland.

The Dow Jones industrial average .DJI rose 205.64 points, or 2.08 percent, to 10,114.03. The Standard & Poor’s 500 Index .SPX added 20.05 points, or 1.90 percent, to 1,076.79. The Nasdaq Composite Index .IXIC gained 35.34 points, or 1.66 percent, to 2,161.39.

Germany is preparing an aid package for Greece and considering both bilateral help and measures agreed at the European level, a German newspaper also reported, citing German coalition sources.

Concerns over rising debt in Greece and some other euro zone countries have sapped confidence from equity markets.

Oil futures gained 2.4 percent to $73.60 per barrel, and the S&P energy sector .GSPE added 2.6 percent.

The stock market also gained from earnings and brokerage upgrades.

Caterpillar Inc (CAT.N) shares jumped 6.1 percent to $53.88, making it the biggest gainer on the blue-chip index.

Morgan Stanley raised its rating on the industrial sector, saying those companies’ share prices should catch up to an improving business environment. Rockwell Automation Inc (ROK.N) rose 2.9 percent to $49.87 and Ingersoll-Rand Inc (IR.N) added 3.7 percent to $34.10, adding to the Caterpillar boost to the sector.

Posted by Shayne Heffernan on Feb 9th, 2010and filed underLatest News, USA.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site