The stock market began the week on a slightly higher note, but intraday action saw the major averages back off their opening highs. The S&P 500 added 0.1% after being up 0.5% in the early going. The Dow Jones Industrial Average outperformed, rising 0.3%.

Equities got off to an upbeat start thanks to an early rally among chipmakers. Qualcomm (QCOM 56.74, +1.51) was at the forefront of the early strength, responding to reports that Chinese regulators will reevaluate the company's offer to acquire NXP Semiconductors (NXPI 110.74, +11.73). The news came after President Trump voiced his desire to find a way to allow U.S. companies to do business with China's ZTE Corporation once again.

The outperformance in high-beta semiconductor names provided an early boost to the technology sector (unch), but large tech components had a mixed showing in the afternoon, pressuring the sector back to its flat line. The PHLX Semiconductor Index (+1.3%) remained strong until the close with Cavium (CAVM 78.18, +5.21) spiking 7.1% to lead the group higher.

Like technology, energy (+0.7%) and health care (+0.7%) outperformed from the start, but unlike technology, the two sectors remained strong until the close. Biotechnology contributed to the outperformance in health care, sending the iShares Nasdaq Biotechnology ETF (IBB 107.68, +1.10) higher by 1.0%. Meanwhile, the energy sector held the lead throughout the session even though crude oil retreated from its high. The energy component settled higher by 0.4% at $71.01/bbl after approaching the $71.25 area in morning trade.

The market's midday pullback developed as sectors like financials (-0.1%), industrials (-0.2%), and consumer staples (unch) refused to follow in the footsteps of influential groups that outperformed from the start. Industrials were pressured by relative weakness in transport stocks. The Dow Jones Transportation Average fell 0.4% after briefly climbing above its closing high from April.

Treasuries recorded losses across the curve with the 10-yr yield rising two basis points to 3.00%.

Market participants did not receive any economic data today, but tomorrow's session will feature several releases. April Retail Sales (Briefing.com consensus 0.3%), Retail Sales ex-auto (Briefing.com consensus 0.5%), and the May Empire Manufacturing survey (Briefing.com consensus 15.0) will be released at 8:30 ET while March Business Inventories (Briefing.com consensus 0.1%) and May NAHB Housing Market Index (Briefing.com consensus 69) will follow at 10:00 ET. The Net Long-Term TIC Flows report for March will be released at 16:00 ET.

• Nasdaq Composite +7.4% YTD
• Russell 2000 +4.3% YTD
• S&P 500 +2.1% YTD
• Dow Jones Industrial Average +0.7% YTD

Headlines provided by Briefing.com