New York, February 9^th (TradersHuddle.com) – Stocks pushed higher as they staged a relief rally after the European Union will likely bailout Greece. The news coming from Europe and good corporate earnings reports helped Bulls regain control.

At 12:15 pm, the Dow Jones Industrial Average jumped 205.95 points, or 2.08%, while the S&P 500 index rallied 19.98 points or 1.89% and the NASDAQ climbed 33.50 points or 1.58%.

Gains accelerated around noon after the Greece bailout reports gained more traction from European Union leaders who said the group should help the nation in return for budgetary reforms.

Energy and materials were the leading sector gainers on the S&P. Defensive stocks trailed, with consumer staples and health care lagging as risk returned to the markets. Airline stocks also took off after their first collective increase in monthly traffic since May 2008.

The dollar weakened against the euro, giving a lift to commodities as oil climbed past $72 a barrel. The euro rallied on the prospects that Greece’s debt woes will ease reducing pressure in the European currency.

The rally was broad based with all 30 Dow components posting gains. Caterpillar (NYSE:CAT), the largest earthmoving equipment maker in the world, rallied 6.07% to $53.86, posting the largest percentage increase in the blue chip index. Shares of Caterpillar surged on an upgrade from Morgan Stanley to “Overweight”, with a price target of $70 a share. The analysts cited pace of cyclical acceleration and Caterpillar’s ability to deliver on its structural transformation and, potentially, $8-10 in earnings.

The second best advance in the Dow Jones Industrial Average was Coca-Cola (NYSE:KO), as shares of the owner of one of the most valuables brands in the world climbed 4.20% to $54.83. The company reported earnings in line with analysts’ estimates, but revenue of $7.51 billion was well above expectations, helped by strong growth in emerging markets. China volumes were up 29%, India 20%, and Brazil 8%.

The third best percentage advance in the blue chip index was Boeing (NYSE:BA), as shares of the 787 Dreamliner maker jumped 3.3% to $59.80. The weaker Dollar is seen to boost the competitiveness of the aircraft maker, which late yesterday announced that its new 747-8 freight liner made its first flight. Today the European Commission expressed dissatisfaction that a WTO hearing regarding Boeing will be delayed until June. The EU executive body filed a complaint several years ago, claiming that tax credits received by the company for the U.S. federal government and state government amounted to illegal trade subsides.

The fourth best gain in the Dow Jones Industrial Average was Alcoa (NYSE:AA), as shares of the aluminum producer added 2.60% to $13.40. The stock benefited from higher metal prices on speculation that China demand will increase and material sector strength as the euro gained strength on the likelihood of a Greece bailout.

The fifth best Dow component was JP Morgan Chase (NYSE:JPM), as shares of the second U.S. lender climbed 2.60% to $38.68. Financials were briefly lower after a sector downgrade, but quickly rebounded as reports of the Greece bailout gained traction, spurring demand of riskier assets.