* Dow moves into black again for the year
* Nasdaq, S&P 500 enjoy best 3-day run in at least 5 months
* Oil price drops, helping airline stocks rise
* Netflix, Facebook, Amazon hit record highs
* Indexes up: Dow 1.07 pct, S&P 0.93 pct, Nasdaq 1.31 pct (Updates to afternoon, adds comment, details on volatility)
By Noel Randewich
July 13 (Reuters) - U.S. stocks surged on Monday, with the Dow Jones industrial average re-emerging in positive territory for the year after euro zone leaders reached a tentative deal to bail out Greece.
The improved picture in Europe also put the Nasdaq composite on track for its best three-day run in 2015, while the S&P 500 headed for its best three-day run in five months.
The technology index led the market higher, with Facebook, Netflix and Amazon all hitting record highs, while Apple's 1.6 percent rise gave the biggest boost to the Nasdaq.
Greece won conditional agreement to receive a possible $95 billion over three years, along with an assurance of talks to bridge a funding gap until a bailout is finally ready. The deal is contingent on Greece meeting a tight timetable to enact reforms of value added tax, pensions and budget cuts.
"Headlines out of Greece are going to dissipate a bit and with that the U.S. earnings picture is going to start to emerge as the important factor," said Mike Binger, a portfolio manager at Gradient Investments in Shoreview, Minnesota, with $850 million under management.
Also making Wall Street more confident, Chinese stocks rose for a third straight day as data showed exports rose while imports slipped in June, a tentative sign global demand might be on the mend.
Pointing to expectations of calmer trading, the CBOE Volatility index fell 16 percent on Monday. Its 29 percent decline in the past two sessions is the largest two-day drop since Jan. 2, 2013.
The Dow Jones industrial average rose 189.77 points, or 1.07 percent, to 17,950.18, the S&P 500 gained 19.38 points, or 0.93 percent, to 2,096 and the Nasdaq Composite added 65.28 points, or 1.31 percent, to 5,062.98.
Nine of 10 major S&P 500 sectors were higher, with utilities weaker as the Greece deal boost U.S. Treasury yields. The financial index rose 0.83 percent. Upcoming quarterly earnings reports from banks are expected to benefit from a recent rise in long-term yields relative to short term yields.
Oil prices tumbled as Iran and six world powers closed in on a nuclear deal that would end sanctions on Iran, allowing more oil onto the market. The energy index stayed in the black but has been the worst-performing S&P sector over the last month, falling over 5 percent.
However, the oil slide boosted U.S. airline stocks . American Airlines, United Continental , JetBlue and Alaska Air were all up between 1 and 3 percent.
Apple rose 1.7 percent, and was up 4 percent in the last two days for its best back-to-back run since the end of January.
Markwest Energy Partners was up 11.7 percent at $66.80. MPLX, Marathon Petroleum's master limited partnership, said it will buy the natural gas processor for about $15.63 billion. MPLX was down 16.6 percent at $57.88 while Marathon rose 7.8 percent to $58.76.
NYSE advancing issues outnumbered decliners 2,129 to 910. On the Nasdaq, 1,951 issues rose and 832 fell.
The S&P 500 was posting 40 new 52-week highs and 10 new lows; the Nasdaq was recording 142 new highs and 39 new lows. (Additional reporting by Tanya Agrawal, editing by Savio D'Souza)