Stocks rose on Wednesday, a day after markets clawed back from a steep sell-off and as Treasury Secretary Timothy Geithner flew to Europe to press for united action to tackle the region's deepening debt crisis.

Industrial and bank shares were among the top gainers as Wall Street bounced back from a correction that pushed the S&P 500 down over 10 percent. Citigroup Inc climbed 3.7 percent to $3.92, while Boeing Co added 3.3 percent to $64.87 after brokerages raised their ratings, citing their undervaluation.

Homebuilder stocks were lifted after a report showed sales of newly built U.S. single-family homes rose in April to their highest level in nearly two years as buyers rushed to benefit from a government tax credit.

Lennar Corp rose 2.5 percent to $17.58, while the Dow Jones homebuilder index <.DJUSHB> jumped 2.2 percent.

I think the market really overreacted, said Nick Kalivas, vice president of financial research and senior equity index analyst, at MF Global. You've basically seen a comeback from the lows and that has essentially created some positive momentum.

The Dow Jones industrial average <.DJI> was up 70.51 points, or 0.70 percent, at 10,114.26. The Standard & Poor's 500 Index <.SPX> was up 9.98 points, or 0.93 percent, at 1,084.01. The Nasdaq Composite Index <.IXIC> was up 30.19 points, or 1.37 percent, at 2,241.14.

Technology issues were also among the leaders, with Apple Inc up 2.5 percent to $251.23, and Google Inc adding 2 percent to $486.58.

The CBOE volatility index <.VIX>, a gauge of market turbulence, fell 13 percent, returning to levels seen before the Spanish government took over a local lender on May 22, spurring fears about the strength of Europe's financial system.

Geithner pressed leaders to work with Washington on a consistent approach to financial reform as the European Union said it might go it alone with a crisis levy on banks. The euro-zone debt crisis has shaken world markets and fueled fears about a double-dip recession.

Commodity prices also bounced back after steep declines. Oil futures rose 3.7 percent to top $71 a barrel after a report showed a drop in U.S. gasoline stockpiles.

That helped energy companies like Anadarko Petroleum Corp , which rose 2.7 percent to $54.25, and Schlumberger Ltd , which advanced nearly 2.4 percent to $59.85.

U.S. indexes have technically entered a correction, falling more that 10 percent from a recent peak on April 23. But Tuesday's late rally pushed the Dow industrials back above the psychologically important 10,000 level.

(Reporting by Edward Krudy; editing by Jeffrey Benkoe)

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