U.S. stocks reversed earlier losses to trade into green territory on Monday despite disappointing economic data and McDonald's earnings report.

McDonald's, a Dow component, reported worse-than-expected earnings before Monday's opening bell to usher in the busiest week in the second-quarter earnings season.

The fast food chain made a net income of 1.40 billion U.S. dollars, or 1.38 dollars per share, on revenues of 7.08 billion dollars in the second quarter.

The results were better than its year-ago numbers but missed analysts' expectations of earning 1.40 dollars per share on revenues of 7.1 billion dollars. Shares of McDonald's sank 2.68 percent to trade at 97.59 dollars per share in midday trading.

Also reporting earnings on Monday are Texas Instruments and Netflix. Meanwhile, Apple's report due on Tuesday is expected to be a market spotlight.

About a third of S&P 500 companies are scheduled to report earnings this week, including eight Dow components such as AT&T and Boeing.

According to Thomson Reuters data, roughly 20 percent of S&P 500 companies have reported second-quarter earnings. Among them, some 65.4 percent beat Wall Street earnings estimates and about a half surpassed revenue forecast.

On the economic front, U.S. existing-home sales declined in June, according to the National Association of Realtors, missing market expectations. Total existing-home sales dipped 1.2 percent to a seasonally adjusted annual rate of 5.08 million in June from a downwardly revised 5.14 million in May.

"A pull-back in existing home sales could be a sign that recent spikes in mortgage rates started to take a toll on sales. Also, higher prices combined with limited supply could also reduce buyers' appetite. In short, the increasing momentum of the housing market is still sensitive to mortgage rates, a key factor for affordability," Mei Li, an economic analyst at FTN Financial commented in a note on Monday.

Moreover, the Chicago Fed National Activity Index, a monthly index designed to gauge overall economic activity and related inflationary pressure, stood at minus 0.13 in June, up from minus 0.29 in May. Readings below zero typically imply below-trend national economic activity and subdued inflationary pressure over the coming year.

In midday trading, the Dow Jones Industrial Average edged up 13. 36 points, or 0.09 percent, to 15,557.10 points. The S&P 500 added 3.58 points, or 0.21 percent, to 1,695.67 points. The Nasdaq Composite Index gained 11.12 points, or 0.31 percent, to 3,598.73 points.

 Source: Xinhuanet