Big names in the banking sector are not having a good Wednesday.
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Bank stocks are sliding following warnings a key metric is behind last year's pace (BAC, JPM)
Bank of America and JPMorgan warned trading revenues are below a year ago.
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Both JPMorgan and Bank of America have seen their share prices drop in early trading on Wednesday. JPMorgan was down about 1.8% and Bank of America was down about 3.3% as of 10:40 a.m. ET.
The shares started to fall Wednesday morning following comments at an investor conference from executives of both firms.
Markets revenue at JPMorgan is down 15% so far in the second quarter compared to last year, CFO Marianne Lake said, according to Reuters. Lake points to lower volatility this year, compared to the tumultuous situation surrounding Brexit in 2016. She added that U.S. economic growth is "solid, not stellar," which has contributed to JPMorgan's lower revenue.
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Bank of America CEO Brian Moynihan also said trading revenues would be lower in the second quarter compared to last year, according to Stephen Alpher of Seeking Alpha.
Other banks are down as well. Goldman Sachs is down about 4%, Citigroup is down about 2.4% and Wells Fargo is down about 1.2% on Wednesday. The S&P 500 is down only 0.25%.
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