By Kate Gibson, MarketWatch NEW YORK (MarketWatch) -- U.S. stocks traveled higher Tuesday in tracking the euro's rise after economic data signaled inflation remains tame and manufacturing activity picked up in the New York region. "The panic from the euro-zone crisis has abated, with the likes of Spain and Ireland able to successfully tap the credit markets, supporting a move into riskier assets," said analysts at Action Economics. The Dow Jones Industrial Average (DJIA 10,302, +111.10, +1.09%) gained 88.24 points, or 0.9%, to 10,279.16, with 27 of its 30 components tallying gains. The S&P 500 Index (SPX 1,102, +11.93, +1.10%) rose 10.72 points, or 1%, to 1,100.35. The Nasdaq Composite Index (COMP 2,276, +32.26, +1.44%) climbed 27.88 points, or 1.3%, to 2,271.84. For every stock on the decline three were advancing on the New York Stock Exchange, where 216 million shares traded as of 10:40 a.m. Eastern. The euro (CUR_EURUSD 1.2320, +0.0109, +0.8927%) briefly topped $1.23, and was lately up to $1.2293, with the currency used by 16 European nations closely monitored as a gauge of Europe's ability to handle its debt crisis. The worries about what's ahead for the euro and European stocks may have peaked, according to Bank of America's Merrill Lynch monthly fund manager survey. See what fund managers had to say. The New York Federal Reserve's Empire State Index climbed to 19.6 in June versus 19.1 in May, while U.S. import prices fell 0.6% in May. A measure of sentiment among home builders fell 5 points to 17 in June from 22 in May, with the drop worse than anticipated. Technology, energy and industrials led the gains among the S&P 500's 10 industry groups. Illinois Tool Works Inc. (ITW 46.02, +0.37, +0.81%) hiked the lower end of its fiscal second-earnings forecast, with the industrial equipment manufacturer citing improved demand. Best Buy (BBY 38.41, -2.64, -6.43%) however reported weaker-than-expected quarterly results. See full story.

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