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Halftime: Trading Financials Ahead of Earnings Next Week

Ten financial institutions will report quarterly earnings results next week, but which are worth buying now?

Gerard Cassidy, a banking analyst at RBC Capital Markets, recommends Bank of New York because it's "attractively valued." He also likes Wells Fargo , which he said tends to report positive numbers.

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Brian Kelly, founder of Kanundrum Capital, bought the Regional Bank HOLDRs exchange-traded fund on Friday. It's a basket of bank stocks, which gives you exposure to both big and regional banks. He thinks the banks could continue to go higher and thinks this ETF is the way to play it.

Financial earnings will begin next week with Citigroup, which reports Tuesday. Goldman Sachs , USB and Wells Fargo reports on Tuesday. Huntington Bancshares , Morgan Stanley and PNC report on Thursday. Bank of America , BB&T and SunTrust reports Friday.

Meanwhile, JPMorgan Chase shares surged Friday after the financial institution reported a 47 percent jump in profits, which beat both earnings and revenues estimates.

"This is the first quarter that all their business lines had strong revenue growth, so we think in 2011 will shift from credit improvement to revenue growth and JPMorgan is leading the way," said Cassidy.

The beat is a nice catalyst for JPM, but Cassidy said others will follow. When the federal government reports which banks can increase their dividends, Cassidy expects JPM to top the list. He thinks JPM will increase its dividend to $1 from 20 cents a share.

Cassidy said now is the time to buy JPM.

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NEXT WEEK'S NOTABLE EARNINGS

Several blue chip companies will report earnings next week:

Delta Air Lines will report on Tuesday. State Street and Raymond James Financial will report on Wednesday. Freeport-McMoRan , Southwest Airlines , Unitedhealth Group and Union Pacific will report on Thursday. Air Products , Airgas , General Electric and Schlumberger will report on Friday.

Stuart Frankel's Steve Grasso will be watching the health care names closely. With the Great Recession, people have been visiting the doctor less and that will persist. He does not like the drug companies, however.

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WATCH THE COMPLETE CONVERSATION

To see the full discussion on trading bank stocks ahead of earnings, as well as "Pops & Drops," watch the video below!

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Trader disclosure: On Jan. 14, 2011, following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Pete Najarian owns (BBY) calls. Pete Najarian owns (F) calls. Pete Najarian owns (GM) call spreads. Pete Najarian owns (AXP) call spreads. Pete Najarian owns (V) call spreads. Pete Najarian owns (HPQ) call spreads. Pete Najarian owns (YHOO). Pete Najarian owns (MSFT) call spreads. Pete Najarian owns (MS). Pete Najarian owns (C). Pete Najarian owns (BAC) call spreads. Pete Najarian owns (GE). Pete Najarian owns (MCD). Pete Najarian owns (REE). Pete Najarian owns (PCX) call spreads. Pete Najarian owns (CNI). Steve Grasso owns (ASTM), (BA), (BAC), (BWC), (C), (CSCO), (JPM), (LIT), (LPX), (MHY), (NDAQ), (PFE), (PRST) and (S).

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BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (RKH)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (DE) call spreads
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (JJC)
Accounts Managed By Kanundrum Capital Own (JJG)
Accounts Managed By Kanundrum Capital Own (MS)
Accounts Managed By Kanundrum Capital Own (DNR)
Accounts Managed By Kanundrum Capital Own (LYC.AU)
Accounts Managed By Kanundrum Capital Own (RUSAL)
Accounts Managed By Kanundrum Capital Own (WYN)
Accounts Managed By Kanundrum Capital Own (ANDE)
Accounts Managed By Kanundrum Capital Own (TBT)
Accounts Managed By Kanundrum Capital Own USD
Accounts Managed By Kanundrum Capital Are Long The Australian Dollar
Accounts Managed By Kanundrum Capital Are Long the Hong Kong Dollar
Accounts Managed By Kanundrum Capital Are Short The Euro
Accounts Managed By Kanundrum Capital Are Short The Yen

PATTY EDWARDS
Edwards owns (SPY) for clients
Edwards owns (PGM) for clients
Edwards owns (GLD) for clients
Edwards owns (SLV) for clients
Edwards owns (AMZN) for clients
Edwards owns (TTM) for clients
Edwards owns (V) for clients
Edwards owns (JNJ) for clients
Edwards owns (AAPL) for clients
Edwards owns (VZ) for clients
Edwards owns (MSFT) for clients
Edwards owns (GS) for clients
Edwards owns (C) for clients
Edwards owns (GE) for clients
Edwards owns (MCD) for clients
Edwards owns (SLB) for clients
Edwards owns (TGT) for clients

STEVE GRASSO
Stuart Frankel & Co and its partners own (AAPL)
Stuart Frankel & Co and its partners own (AMGN)
Stuart Frankel & Co and its partners own (ABX)
Stuart Frankel & Co and its partners own (CSCO)
Stuart Frankel & Co and its partners own (CUBA)
Stuart Frankel & Co and its partners own (GERN)
Stuart Frankel & Co and its partners own (HSPO)
Stuart Frankel & Co and its partners own (NEM)
Stuart Frankel & Co and its partners own (NWS.A)
Stuart Frankel & Co and it’s partners own (NY)
Stuart Frankel & Co and its partners own (PDE)
Stuart Frankel & Co and its partners own (PFE)
Stuart Frankel & Co and its partners own (PRST)
Stuart Frankel & Co and its partners own (RDC)
Stuart Frankel & Co and its partners owns (SDS)
Stuart Frankel & Co and its partners own (XRX)
Stuart Frankel & Co and its partners own (SDS)
Stuart Frankel & Co and its partners are short (QQQQ)
Stuart Frankel & Co and its partners are short (AAPL)

PETER BOOCKVAR
Boockvar has no disclosures

GERARD CASSIDY
RBC Capital Markets provides (BAC) with non-investment banking services
RBC Capital Markets provides (BAC) with non-securities services
RBC Capital Markets provided (BAC) with non-securities services in past 12 months
RBC Capital Markets provides (JPM) with non-securities services
RBC Capital Markets has provided non-investment banking services to (JPM) in last 12 months
RBC Capital Markets or one of its affiliates managed or co-managed a public offering for (BK) in past 12 months
RBC Capital Markets or one of its affiliates received investment banking compensation from (BK) in past 12 months
RBC Capital Markets provides (BK) with non-securities services
RBC Capital Markets has provided investment banking services to (BK) in the past 12 months
RBC Capital Markets has provided (STT) with non-investment banking services in the past 12 months
RBC Capital Markets or one of its affiliates managed or co-managed a public offering for (WFC) in past 12 months
RBC Capital Markets or one of its affiliates received investment banking compensation from (WFC) in past 12 months
RBC Capital Markets provides (WFC) with non-securities services
RBC Capital Markets Personnel & A Household Member Or Members Of Analyst Team Hold(s) Or Exercise(s) Investment Discretion Over A Long Position In (WFC)

CNBC.com with wires.

Symbol
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APD
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ARG
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BAC
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BBT
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BK
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DAL
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FCX
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GE
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GS
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HBAN
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JPM MLP ETN
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LUV
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MS
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PNC
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RJF
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SLB
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STI
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STT
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UNF
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UNH
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USB
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WFC
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JWF
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MV BB
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