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Traders weigh the banks ahead of earnings

The "Fast Money" traders evaluated the bank stocks as their earnings reports drew closer.

Citigroup, JPMorgan Chase and Wells Fargo are all expected to report earnings before the market open on Friday.

Trader David Seaburg said that the quarterly results from the banks actually don't matter as much as a looming rate hike from the Federal Reserve. He said, if anything, the expectations for the sector are very low right now. Seaburg said he would rather hold onto the bank stocks right now and then take off profits when the Fed raises its benchmark federal funds rate.

Trader Pete Najarian agreed and said he is holding positions in Bank of America and Goldman Sachs. He also said that JPMorgan Chase has been a very resilient stock in the banking sector.

Trader Dan Nathan said he's not certain the risk-reward "is really there" in the financials.

Trader Guy Adami thinks U.S. Bancorp is a more stable name in the sector that is still trading near its 52-week high of $44.58. The stock closed at $43.29 on Tuesday.


Disclosures:

PETE NAJARIAN

Long stock: AAPL, BAC, DIS, DISCA, GE, KMI, KMIA, KO, LUX, PEP, PFE, calls: AAL, ABT, AMD, ATVI, BABA, BAC, BHI, BSX, CNX, COP, COTY, CRM, CS, CXW, DAL, DISH, ECA,EL, ETP, GS, GT, HAL, INTC, JBLU, JCP, KBE, KGC, KMI, KO, KR, LLY, LOW, M, MRO, MRVL, MUR, NAV, SBUX, SLV, TMUS, TTS, TV, TWTR, VRX, WFT, WLL and puts: CLF, EEM, MBLY, WFC

DAVID SEABURG

Opinions expressed by David Seaburg are solely his own and do not reflect the views and opinions of Cowen Group, Inc. David Seaburg and Cowen have a financial interest in EDIT. Diamond Offshore: an employee of Cowen and Company, LLC serves on the Board of Directors of Diamond Offshore. EXPE, HZNP, VA – Not Approved.

DAN NATHAN

Dan Nathan is long TWTR , long PYPL Oct calls, XHB long Jan put spread, XLU long Dec call Spread, XLK long Jan Put spread, XRT long Jan put spread, PG long Dec put spread, EEM long Nov put spread..

GUY ADAMI

Guy Adami is long CELG, EXAS, GDX, INTC. Adami's wife, Linda Snow, works at Merck.