Stocks ended near session highs Tuesday, with all three major averages logging their best rally in a month, helped by a handful of positive earnings reports and as fears over Europe diminished.

The Dow Jones Industrial Average surged 194.13 points, or 1.50 percent, to close at 13,115.54, soaring back above the 13,000 milestone. All 30 blue-chip components ended in positive territory, led by Kraft and Disney .

The S&P 500 jumped 21.21 points, or 1.55 percent, to end at 1,390.78. The Nasdaq rallied 54.42 points, or 1.82 percent, to finish at 3,042.82.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, closed below 18.

All key S&P sectors finished firmly in positive territory, led by energy and techs.

“There’s a huge tug of war between Europe and earnings and right now, earnings are winning,” said Burt White, CIO of LPL Financial, on CNBC's Power Lunch . “But the economic data is going to be an important factor and you’re beginning to see some cracks in the foundation.”

Still, White said the market is setting itself up for a good investing environment.

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