U.S. stocks rose, sending the Dow Jones Industrial Average above its highest closing level since May 2008, as Greece made progress on measures to secure aid.

Seven out of 10 groups in the Standard & Poor’s 500 Index gained, helping the measure rebound from an earlier decline. Coca-Cola Co. added 0.8 percent as earnings beat analysts’ estimates. Yum! Brands Inc., owner of the KFC and Taco Bell fast-food chains, climbed 2.7 percent as profit surged 30 percent. Walgreen Co., the largest U.S. drugstore chain, slid 1.9 percent as Citigroup Inc. cut its recommendation.

The S&P 500 rose 0.1 percent to 1,346.20 at 1:46 p.m. New York time, wiping out a decline of as much as 0.6 percent. The Dow advanced 29.10 points, or 0.2 percent, to 12,874.23.

“We need to see some real austerity from Greece,‘‘Hank Smith, chief investment officer at Haverford Trust Co. in Radnor, Pennsylvania, said in a telephone interview. His firm manages about $6.5 billion. ‘‘When we see that, we will have more confidence that Europe is serious about growth. I have confidence that we’ll get some sort of resolution that allows for additional funding.’’

Equities rebounded as Greece’s government and international creditors work on the final draft of an agreement on budget and structural measures needed to free up a second aid package, a Greek official said. Greek Prime Minister Lucas Papademos will meet with the leaders of the three parties supporting his government tomorrow morning, instead of tonight as previously scheduled, a spokeswoman for his office said.

Earnings Season

Today’s rally extended this year’s advance in the S&P 500 to 7 percent amid better-than-expected economic data and corporate earnings. Earnings beat projections at 68 percent of the 280 companies in the S&P 500 that reported quarterly results since Jan. 9, according to data compiled by Bloomberg.

‘‘Greece is on the front page again,” Paul Zemsky, the New York-based head of asset allocation for ING Investment Management, said in a telephone interview. His firm oversees $160 billion. “It’s been the theme for at least a year that you had to take these governments near the edge of the abyss and look into it before they would agree to additional cuts or fiscal tightening or other types of concessions to get money.”