Cut fruit or ?

I've got this nectarine tree that never really flourished. It was a 3 or 5 gallon when I planted it about 18 months ago. It has grown maybe a foot or so since planting but it never really looked great. It tried to put out a couple fruits in the early spring and then 6 to 8 fruits later in the season which all went bad and I noticed some fungus like jelly on the trunk at one point. I was fertilizing it every so often with some pellets.

I moved away for 6 months and I'm now back and wondering if anyone can tell me what they think. Is this doing OK or what. It is now trying to put out a few early season fruits again. Will pruning the fruits help it vegetate more or is there something altogether different that I should do to help it?