Why Traders Are Selling Banks Now

JPMorgan kicked off a good, not great earnings report season for banks...but traders have been selling banks mid-morning because there is no loan growth outside of the commercial area and no revenue growth...what the banks really need is stable economic growth to drive revenues.

Another complaint: a large part of JPM's bottom line beat was a $2 billion reduction in credit card allowance, which helped improve earnings by $0.29 — traders argue that reserve releases are not organic earnings growth. That's true, but it is a sign credit continues to improve.

(See: JPMorgan's Earnings Point to a Double Dip)

Elsewhere traders are selling defense stocks as the president's speech today may likely announce more intense spending cuts...including in defense...this is a problem because the defense companies are expecting low single digit revenue growth...they may have to revise their outlooks.

Bookmark CNBC Data Pages:


Want updates whenever a Trader Talk blog is filed? Follow me on Twitter: twitter.com/BobPisani.

Questions? Comments? tradertalk@cnbc.com