By Donna Kardos Yesalavich

U.S. stocks rose Tuesday as rising commodity prices boosted energy stocks and European sovereign debt concerns eased, while morning data showed a brightening outlook for New York area manufacturing.

Trading in a narrow range, the Dow Jones Industrial Average (DJI) was recently up 95 points, or 0.9%, to 10,195, after rising 110 points.

The Nasdaq Composite (RIXF) climbed 0.9%. The Standard & Poor's 500 index (SPX) rose 1.1%. All its sectors were higher, led by energy and materials.

After reaching a nine-month high against the euro on Monday, the dollar slipped slightly Tuesday after fellow euro-zone countries agreed to give Greece one month to show it can right its unbalanced budget before demanding steep spending cuts and fresh taxes.

The U.S. Dollar Index (DXY) -- which represents the greenback against a basket of six other currencies -- slid 0.4%.

A weaker dollar and renewed tension over Iran's nuclear ambitions boosted crude oil futures above $76 per barrel. Gold futures surged, with the April contract up $27.50, or 2.5%, to $1,117.5 an ounce.

Gold has been trading as a risk asset in recent months. Treasurys slipped, with the 10-year note off 5/32 to yield 3.712%.

Investors said fears over the euro zone ebbed somewhat after the European finance ministers' meeting provided more visibility into the euro zone's coordination.

"At this point the situation in Greece is well-documented," said Michael Church, president of Addison Capital. However, he noted that outside of equities, other markets continue to swing in reaction to shifting concerns in global markets.

"There's a lot of action in the currency markets. My suspicion is that's playing into the market more than anything else at this point," he said.

Church said sentiment may be leaning more optimistic, as the market began its rise after morning economic data showed a bigger-than-expected climb in New York area manufacturing.

According to the Federal Reserve Bank of New York's Empire Manufacturing Survey released Tuesday, conditions for New York manufacturers improved sharply in February, with its business conditions index rising to 24.91 this month, from 15.92 in January. Economists had expected a reading of 16.0 in February.

The index for new orders, however, fell back sharply to 8.78, from 20.48 last month. The index for shipments also dropped, but to a lesser extent, slipping to 15.14, from 21.07.

Movers and shakers

Among stocks in focus, Terra Industries Inc. (TRA) jumped 22% in after accepting a $4.1 billion takeover bid from Norway's Yara International (YARIY).

American depository shares of Barclays Plc (BCS) climbed 11% after the U.K. banking giant released a better-than-expected quarterly earnings report.

On the Dow Jones Industrial Average, Chevron Corp. (CVX) was its best performer, up 2.5%. The stock was boosted by a rise in crude-oil futures in addition to a ratings upgrade from Bernstein Research.

Bank of America Corp. (BAC) climbed 2.4% after reporting "significant gains" in the number of modified mortgages it handles through the government's Home Affordable Modification Program, designed to lower monthly payments for struggling customers.

Merck (MRK) gained 1.9% after its fourth-quarter profit and sales rose sharply on its recent takeover of Schering-Plough Corp. The drug maker also laid out plans to cut 15% of its work force to generate cost savings from the deal.

However, Kraft Foods (KFT) kept the Dow's gains in check. The stock fell 1.8% as its fourth-quarter revenue came in slightly short of analysts' expectations.