RTTNews - After failing to sustain an early upward move, stocks are showing a lack of conviction in mid-morning trading on Monday, as traders are looking for direction amid a light day on the economic and earnings front.

In earnings news, industrial and construction supplies wholesaler Fastenal (FAST) reported second quarter earnings that fell to $0.29 per share from $0.51 per share in the year-ago quarter, coming in below analyst estimates of $0.33 per share.

Ahead of the results, Fastenal announced Friday that its board of directors authorized the repurchase of 2 million shares in the market.

Rail-based transportation provider CSX Corp. (CSX) is scheduled to report second quarter results after the closing bell. Analysts expect the company to report earnings of $0.69 per share for the quarter.

Novellus Systems (NVLS) will also report is second quarter results after the markets close today. The semiconductor equipment maker is expected to slip to a loss of $0.38 per share compared to a profit of $0.06 in the year-ago quarter.

Meanwhile, aluminum die-cast auto parts maker J. L. French Automotive Castings, whose major customers include General Motors and Ford (F), announced that it is filing for bankruptcy protection under Chapter 11 with the District Court of Delaware.

Commercial lender, CIT Group (CIT) revealed that it is in discussions with regulators seeking assistance to improve its liquidity measures in the near term. The firm reportedly hired a law firm to explore a possible bankruptcy filing.

The Treasury Department's Treasury Budget for June is the lone economic report that is scheduled to be released today, with economists expecting a deficit of $77.5 million. The data is on tap for 2 p.m. ET.

The major averages have moved back to the upside in recent trading, with the Nasdaq climbing back above the unchanged line. The Dow is currently up 50.56 at 8,197.08, the Nasdaq is up 1.13 at 1,757.16 and the S&P 500 is up 4.97 at 884.10.

Sector News

Banking stocks are showing strength in mid-morning dealing, with the Kbw Bank Index currently up by 2.8 percent. With the gain, the index is moving further off the two-month closing low it set last week.

Huntington Bancshares (HBAN) is turning in one of the sector's best performances, advancing by 5.7 percent. The stock is continuing its move away from a two-month closing low set last Wednesday.

Additionally, shares of Bank of America (BAC), Fifth Third (FITB), Wells Fargo (WFC) and M&T Bank (MTB) are also posting strong gains. Earlier, shares of M&T surged to their best intraday level in two months.

While some strength has also emerged among electronic storage, real estate, and retail stocks. Resource stocks are moving lower along with commodities prices. Gold stocks are posting notable losses, dragging the NYSE Arca Gold Bugs Index down 1.7 percent.

Significant weakness is also visible among healthcare provider and transportation stocks, helping to limit the upside for the broader markets.

Stocks Driven By Analyst Comments

Shares of Scientific Games (SGMS) are moving higher in mid-morning trading after being upgraded by JP Morgan Chase from Neutral to Overweight. The stock is up by 6 percent, climbing further off of a three-month closing low set last Wednesday.

Goldman Sachs (GS) is also on the rise following an upgrade from Neutral to Buy at Meredith Whitney Advisory Group. The broker cited a positive outlook for the banking sector as a reason for the ratings change. The stock is posting a gain of 3.5 percent, but it remains stuck in a roughly one-month trading range.

On the other hand, Compass Minerals International (CMP) is sliding after Oppenheimer downgraded the company's stock to Perform from Outperform. The stock is down by 8.7 percent, falling to a seven-month intraday low.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region ended Monday's session firmly on the downside, with Japan's benchmark Nikkei 225 Index and Hong Kong's Hang Seng Index both falling by 2.6 percent.

Meanwhile, the major European markets are on the rise, with the German DAX Index and the French CAC 40 Index up by 1.8 percent and 1.7 percent, respectively. The U.K.'s FTSE 100 Index is also moving higher, rising by 1 percent.

In the bond markets, treasuries are seeing choppy trading as investors are looking for direction on the day. Subsequently, the yield on the benchmark ten-year note is trading at 3.301 percent, rising by less than a basis point on the day.

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