NEW YORK (AP) - Airline stocks helped lead a market rebound yesterday that nearly erased Tuesday's big-sell off brought on by concerns over a slowdown in China.

Stocks rose as traders saw overnight gains in China as an encouraging sign that the country's surprise interest rate hike will not dampen the global economy.

A batch of positive corporate earnings reports from companies like Delta Air Lines Inc., American Airlines parent company AMR Corp. and Boeing Co. also helped send the stock market broadly higher.

The Dow Jones industrial average rose 129.35, or 1.2 percent, to 11,107.97. The broader Standard and Poor's 500 index was up 12.27, or 1.1 percent, to 1,178.17, and the technology-focused Nasdaq composite index was up 20.39, or 0.8 percent, to 2,457.39.

Every industry within the Standard and Poor index rose, with the materials sector up 1.9 percent in part because of a weakening dollar. The dollar fell 1.2 percent against a broad basket of currencies.

The Shanghai Composite Index, China's main stock market benchmark, rose slightly in overnight trading. Those gains "helped create a more constructive tone for the trade this morning", said Nick Kalivas, an equity analyst for MF Global.

The fact that China raised interest without leading to a drop in stock prices "was a sign of strength", said Sandy Mehta, a portfolio manger in Value Investment Principals who is based in Hong Kong. "Raising rates show that they have confidence in their economy and it continues to grow strongly."

Delta rose 10.8 percent after the company announced a profit driven by a 19 percent jump in passenger revenue.

That helped push shares of competitors like Jet Blue and Southwest Airlines up more than four percent.

Boeing rose 2.3 percent after the aircraft manufacturer raised its profit forecast for the year and said that it expects to sell more commercial airplanes.

Boeing was the top performer among the 30 companies in the Dow, followed closely by Caterpillar Inc.

The financial companies within the Standard and Poor's index rose 1.1 percent as some traders saw the stocks as a bargain amid questions over how banks have been handling foreclosures.

"People are taking advantage of an opportunity to buy on dips," said Bruce Simon, the chief investment officer at Ballentine Partners.

Investors continue to question what the impact will be over reports that the New York Federal Reserve will join institutional bond holders in an effort to force Bank of America Corp. to repurchase billions of dollars in mortgage bonds issued by Countrywide Financial, which BofA purchased in 2008. The North Carolina bank was down five cents, or 0.4 percent, to $11.75.

Before the market opened, San Francisco bank Wells Fargo & Co. announced that it beat profit forecasts but missed slightly on revenues, while Morgan Stanley reported a loss of seven cents per share on special charges. Shares of Morgan Stanley fell one cent to $25.38.

Shares of Wells Fargo were up $1.05, or 4.3 percent, at $25.60. Earlier in the day, the stock had traded as low as $23.50.

Late in the afternoon, the Federal Reserve announced that seven of the bank's 12 regions reported moderate improvements in business activity. Economic growth was slowing in the Dallas and Atlanta regions.

Hong Kong's Hang Seng index fell 0.9 percent. The Euro Stoxx 50 index of blue-chip companies in Europe rose 0.2 percent.

The dollar fell a little more than one percent against a broad basket of currenices.

Bond prices traded in a tight range. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.48 percent from 2.46 percent late on Tuesday.

Shares of Delta were up $1.27 to $12.97, while shares of Boeing were up $2.31 to $71.36. Jet Blue was up 44 cents to $6.95, and Southwest was up 47 cents to $13.16.