Apple gained to a four-month high after the Obama administration overturned an international trade ruling that said some sales of older iPhones and iPads should be banned because they infringe a Samsung Electronics patent. The iPhone maker's stock is up more than 20 percent from its 52-week low of $385 in April.
(Read more: Ban on sales of certain Apple products overturned)
Facebook continued to trade higher after the social-networking giant closed above its IPO price of $38 a share last week for the first time it went public. Piper Jaffray raised its target price on the company to $46 from $38.
(Read more: What to do with Facebook stock amid mobile gains)
Among earnings, Tyson Foods rallied after the meat processor blew past earnings expectations, as strong demand for chicken and beef more than made up for a drop in sales of pork. In addition, the company said it sees 2014 sales above average analyst forecasts.
Warren Buffett's Berkshire Hathaway edged higher after the company said second-quarter profit rose 46 percent. At least three brokerages raised their price targets on the firm.
High-profile companies scheduled to post earnings this week include Disney, Time Warner, Tesla Motors, Dean Foods and Priceline.com.
So far, nearly 80 percent of the S&P 500 companies have reported second-quarter results, with 68 percent topping earnings expectations and 55 percent beat revenue estimates, according to the latest data from Thomson Reuters. If all remaining companies report earnings in line with estimates, earnings will be up 4.2 percent from last year's second quarter.
In Asia, Japan's Nikkei index skidded 1.4 percent on Monday, while Australia's S&P ASX 200 hovered around 5,110 points in cautious trade and South Korea's Kospi ended below 1,920 points.
However, the Shanghai Composite bucked the trend, hitting a new two-week high, after positive services sector data was released over the weekend. The non-manufacturing purchasing managers' index (PMI) rose to 54.1 in July, well above the key 50-level that demarcates expansion from contraction.
(Read more: This week in Asia, watch China data and central banks)