Coming into 2018, many traders expected the environment of rising interest rates, financial sector deregulation and a booming U.S. economy to create the perfect environment for bank stocks. Unfortunately, the Financial Select Sector SPDR Fund is down 1.7 percent so far this year, and PreMarket Prep co-host Dennis Dick discussed the troubling trading action on Friday's show. European banks such as Deutsche Bank AG (USA) aren’t out of the woods yet, and U.S. banks stocks aren’t as cheap as they may appear, Dick said. “I’ve said publicly that I’m bearish the U.S. banks, and I continue to be bearish on the U.S. banks because I don’t know what is going on in Europe,” Dick said. “I don’t like the pricing action of any of the European banks." Deutsche Bank shares are down 36 percent in the past month after the Wall Street Journal reported the U.S. Federal Reserve placed assigned a “troubled condition” to Deutsche Bank last year. Shares of European bank stocks Lloyds Banking Group PLC (ADR) , Barclays PLC (ADR) and Credit Suisse Group AG (ADR) are all down between 3 and 13 percent in 2018. Source