Your Neighborhood Bank Trade

Friday, 12 Oct 2007 | 7:34 PM ET

Now that the Federal Reserve has lowered the cost of borrowing, will regional banks such as U.S. Bancorp (USB) and PNC Bank (PNC) report an earningsboost thanks to the steeper yield curve?

Here’s the regional earnings calendar breakdown.

Mon. 10/ 15 - Wells Fargo (WFC) & US Bancorp (USB)
Tue. 10/16 - Sovereign Bank (SOV) & Washington Mutual (WM)
Wed. 10/17 - PNC Bank (PNC)
Thr. 10/18 - Fifth Third Bancorp (FITB)

A few weeks ago strategic investor Dennis Gartman told the traders he was bullish on the regional banks and liked the KBW Regional Banking (KRE) .

Tomorrow's Trades #2
Regional Banks may see an earnings boost next week on lower borrowing costs, with the Fast Money crew.

Karen Finerman doesn’t agree with Gartman. Although most of the credit crisis is probably over, she says, the risk reward just isn’t there.

Guy Adami likes some of the regional banks and says buy USB going into earnings. He expects the stock to trade around $36.

Here's a related trade (it's in banking). On Friday, Pete Najarian says he bought the $47.50 Citigroup (C) put and sold the $50 call. He also owns the stock.

Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to fastmoney@cnbc.com.

Trader disclosure: On Oct 12, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (ATVI), (INTC), (JWN), (EMC); Najarian Owns (BEAS), (C), (EMC), (GOOG), (UA); Finerman Owns (C), (GS); Finerman's Firm Owns (COP), (CTX), (GE), (KSS), (LTD), (MSFT), (NVT), (TGT), (WMT), (DAI), (KFT), Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns (BEAS); GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC

  Price   Change %Change

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report