NEW YORK (CNNMoney.com) -- Stocks soared Tuesday, recovering from the previous session's selloff, as investors grew optimistic that a recovery package for debt-burdened Greece may be close.

The Dow Jones industrial average added 140 points, or 1.4%, over an hour into the session. The S&P 500 index rose 23 points, or 1.1%, and the Nasdaq composite gained 13 points, or 1.2%.

Europe's debt crisis rattled Wall Street on Monday, dragging the Dow down 1% to close below 10,000 for the first time since early November.

But fears eased Tuesday after reports that European Central Bank president Jean-Claude Trichet would return early from a meeting in Australia to meet with European Union leaders, with the possibility of a rescue plan for debt-ridden Greece on the agenda.

"We're seeing a strong rally today on hopes that there will be some sort of lifesaver for Greece's debt problem," said Peter Cardillo, chief market economist at Avalon Partners. "The ECB extending a hand would also alleviate fears of the virus spreading to other countries like Portugal, Spain and possibly Italy."

The speculation sent European stocks higher and restored confidence in the euro, taking momentum out of the dollar's recent rally. The greenback slipped 0.7% against the euro and 0.3% versus the pound.

But the buck continued to strengthen against the yen, rising 0.2%. In Asia, the Nikkei finished the session in negative territory but Hong Kong's Hang Seng added 1.2%.

Economy: Investors shrugged off a a report released after the start of trading that showed wholesale inventories fell 0.8% in December after rising 1.5% in November. Economists surveyed by Briefing.com thought inventories would edge up 0.5%.

Toyota: Following its recalls totaling 8.1 million vehicles for accelerator problems, troubled automaker Toyota Motor (TM) announced another global recall involving 437,000 hybrids, including the 2010 Prius, for problems in their anti-lock braking systems software.

Earnings: Dow component Coca-Cola reported a fourth-quarter profit that surged 55% from a year earlier to $1.54 billion, or 66 cents per share, in line with analysts' expectations.

The Atlanta-based company's sales climbed 5.3% to $7.51 billion during the quarter. Economists surveyed by earnings tracker Thomson Reuters expected revenue to only grow 1%.

Shares of Coca-Cola rose 3.5% in early trading.

Media conglomerate Walt Disney, another Dow component, reports its quarterly earnings after the markets close Tuesday. Disney is expected to have earned 39 cents per share, down almost 5% from 41 cents a year earlier.

Sales are expected to rise 1% to $9.7 billion.

Commodities: U.S. light crude oil for March delivery rose $1.22 per barrel to $73.12 on the New York Mercantile Exchange, extending modest gains from the previous session.

COMEX gold for April delivery rose $8.20 per ounce to $1,074.40.

Bonds: Treasury prices tumbled, raising the yield on the 10-year note to 3.61%from 3.56% late Monday. Treasury prices and yields move in opposite directions.

Market breadth was positive. On the New York Stock Exchange, winners topped losers five to one on volume of 200 million shares. On the Nasdaq, advancers beat decliners three to one on volume of 400 million shares.

The-CNN-Wire/Atlanta
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