US Stocks: Investors take Greek deal in stride (ext)

NEW YORK (CNNMoney) -- Investors have been betting on a Greek austerity deal all week, and now that it's finally here, they're breathing a sigh of relief. U.S. stocks closed modestly higher Thursday following a morning of choppy trading.

The Dow Jones industrial average (INDU) rose 6 points, or less than 0.1%, to end at 12,890. The S&P 500 (SPX) added 2 points, or 0.2%, to 1,352. The Nasdaq composite (COMP) gained 11 points, or 0.4%, to 2,927.

Stocks opened higher on news that Greek political parties have finally reached an agreement on austerity measures, which sparked some optimism that the troubled nation will be able to secure more bailout funds and avoid a default. But the market struggled to maintain its momentum, drifting lower in the morning before recovering in the afternoon.

Though the progress is encouraging, the situation in Greece still remains highly uncertain.

"The market has been waiting for this news for weeks," said Art Hogan, managing director at Lazard Capital Markets. "It's a step in the right direction but it has been expected, so that's why the reaction is rather muted."

Hogan added that investors will continue to keep close tabs on any new progress out of Greece, which also appears close to a deal with its private-sector creditors to write down a portion of the nation's debt.

The dollar fell against the euro and the British pound, but rose versus the Japanese yen.

Oil for March delivery increased $1.13 to end at $99.84 a barrel.

Gold futures for April delivery added $9.90 to settle at $1,741.20 an ounce.