Greek deal leads to modest gains on Wall St

"There's some relief that they've made it this far, since the negotiations could've gone meaningfully wrong, but this was largely priced in," said Colas. "At the same time, there's still some concern that this deal isn't enough and we'll be back in this situation again later."

Euro zone officials say the full package must be agreed with Greece and approved by the EU, IMF and European Central Bank by February 15, so legal paperwork can be completed in time to avoid a chaotic default that could destabilize the global financial system.

The Dow Jones industrial average <.DJI> was up 6.51 points, or 0.05 percent, at 12,890.46. The Standard & Poor's 500 Index <.SPX> was up 1.99 points, or 0.15 percent, at 1,351.95. The Nasdaq Composite Index <.IXIC> was up 11.37 points, or 0.39 percent, at 2,927.23.

Providing support to the market was a report showing jobless claims fell last week, underscoring improvement in the labor market. That followed Friday's report of a better-than-expected rise in the number of jobs created in January.

Apple's stock hit an all-time high. Brokerage Canaccord Genuity said its checks indicated very strong iPhone 4S sales and increased its price target to $665. Website AllThingsD said Apple would introduce its latest iPad tablet version next month.

Shares of Apple surged 3.5 percent to $493.17, hitting an all-time high of $496.75 earlier. The S&P information technology sector <.GSPT> rose 1 percent as the day's best-performing group.

But Cisco Systems Inc limited gains by the tech sector as the network equipment maker's forecast failed to impress investors. Shares fell 2.1 percent to $20.

PepsiCo Inc fell 3.7 percent to $64.27 after the beverage maker forecast lower-than-expected 2012 earnings and said it would cut thousands of jobs.

Groupon Inc slumped 14 percent to $21.17. The daily deal website posted an unexpected loss in the first quarterly report since it went public.