By Anora Mahmudova and Sara Sjolin, MarketWatch

Stocks buoyed by Greece debt extension hopes

NEW YORK (MarketWatch) -- U.S. stocks ventured into positive territory Tuesday, with the S&P 500 hitting fresh intraday record, after news reports that Greece may ask for a six-month extension on its debt obligations.

According to media reports citing unnamed sources, the newly elected Greek Prime Minister Alexis Tsipras will seek an extension on Wednesday.

U.S. stocks had been under pressure earlier as talks between parties collapsed on Monday, while weaker-than-expected readings on manufacturing and housing activity added to Wall Street's dour mood.

The S&P 500 (SPX) perked up, with five of its 10 main sectors trading in the green. Healthcare and financial stocks were leading the gains.

The Dow Jones Industrial Average (DJI) was flat, with half of its 30 members trading lower. Microsoft and Cisco Systems led losses, while the tech-centric Nasdaq Composite Index (RIXF) was slightly higher.

Kate Warne, investment strategist at Edward Jones, said the standoff between Greece and European commission had increased uncertainty, resulting in the earlier pullback.

"Over the past week markets have been complacent about Greece and the eventual agreement and any news that deviates from that leads to negative reaction," Warne said.

Commenting about the earnings season, Warne said corporations were able to beat lowered-down expectations.

"Earnings were not stellar, but we still saw growth in profits. So, that's a positive for stocks. And while a stronger dollar does slow earnings growth for many companies, it does not stop or decrease it, as companies are adapting to new reality," she added.

Greece is still the focus: U.S. markets were closed for Presidents Day on Monday, so investors didn't have a chance to react to the latest news of stalled negotiations on Greece until Tuesday.

Talks among eurozone finance ministers broke down abruptly after European markets had closed on Monday, when Greece's new anti-austerity government rejected an extension to its 240-billion-euro ($272 billion) bailout program under the conditions offered by its European partners.

Greece's current program expires at the end of February.

"Although the failure of Eurogroup finance ministers to reach a deal on Greece's near-term financing needs on Monday elicited little response from markets outside of Greece, this calm may not last," wrote analysts at Capital Economics.

"We think this failure has raised the risk of a Greek exit from the euro-zone significantly. What's more, the mechanisms in place to prevent contagion are not as bullet-proof as many think," the note said.

Read: These 5 charts explain the latest Greek drama

Greece's Athex Composite index slid 1.7% to 845.06, while the Global X FTSE Greek 20 ETF (GREK) slumped 7% ahead of the U.S. open. Read: Greek assets slammed after debt deadlock

Data: Tuesday's economic data came in below expectations, but the reaction seems to be mostly muted. The Empire State manufacturing moved slightly lower but remained in positive territory in February.

Meanwhile, a gauge of confidence among home builders fell in February to a four-month low but continued to point to a higher level of construction in the months ahead.

Philadelphia Fed President Charles Plosser will speak on monetary policy and the economic outlook at an event in Philadelphia at 12:45 p.m. Eastern Time.

Earnings:Goodyear Tire & Rubber Co.(GT) posted a huge profit jump, thanks to a one-time tax credit that offset currency fluctuation and weaker sales in Europe. Shares jumped accordingly.

Starwood Hotels & Resorts Worldwide Inc.(HOT) said Chief Executive Frits van Paasschen has resigned and will temporarily be replaced by director Adam Aron. Shares rose sharply.

Cablevision Systems Corp. (CVC), was the top decliner amid negative analyst comments, including a MoffettNathanson downgrade to neutral from buy for big cable stocks that cited concerns such as cord cutting, according to a Hollywood Reporter story.

Follow more of the day's big stock moves here.

Other markets: European markets were mostly lower, weighed by those Greece worries. In Asia, most indexes closed higher, with the Shanghai Composite Index extending its winning streak to seven sessions.

In commodity markets, prices fell across the board, despite the weaker dollar. The ICE dollar index (DXY) moved slightly lower. Gold futures fell 1.2% to $1,212.20 an ounce, while oil (CLH5) prices fell 2.4% to $51.50 a barrel.

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