Editor's Note: This story serves as an update to an earlier post, which recapped the "Fast Money Halftime Report." In this post, you'll find content from both "Halftime" and the 5pm broadcast.
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.
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.
Guy Adami, managing partner at Drakon Capital, likes USB, which is currently flirting with its 52-week high. When it reports before the bell Wednesday, Adami doesn't think it will "expode," but will continue to move to the upside.
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.
Karen Finerman, president at Metropolitan Capital Advisors, has been closely watching JPM. Finerman noted it's had a "noisy" quarter with both positive and negative news, but is pleased with its credit improvement. Going forward, she would like to see more loan growth and wants to know how it will make up for revenue lost from financial regulatory reform. She is also hoping JPMorgan will pay a dividend later this year.
Finerman said she did buy a few banks on the heels of JPM's earnings beat, including Citigroup and Bank of America. Five dollars could be the new floor for Citi, she said, as some of the credit card issues it's faced are improving.
Speaking of BAC, EmergingMoney.com's Tim Seymour expects it to make a run on investment banking. He loves its chart and is a buyer at current levels.
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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; Adami Owns (AGU); Adami Owns (C); Adami Owns (GS); Adami Owns (INTC); Adami Owns (MSFT); Adami Owns (NUE); Adami Owns (BTU); Adami's wife works for (MRK); Seymour owns (AAPL); Seymour owns (BAC); Seymour owns (F); Seymour owns (FXI); Seymour owns (POT; Finerman's firm is short (MDY); Finerman's firm is short (SPY); Finerman's firm is short (IWM); Finerman's firm is short (IJR); Finerman's firm is long S&P puts; Finerman's firm is long Russell 2000 puts; Finerman owns (AAPL); Finerman owns (BAC); Finerman's firm owns (BBY); Finerman owns (BP); Finerman's firm owns (BP); Finerman owns (C); Finerman's owns (GOOG); Finerman owns (HPQ); Finerman's firm owns (HPQ); Finerman's firm owns (IBM); Finerman owns (JPM) and (JPM) leaps; Finerman's firm owns (JPM) and (JPM) leaps; Finerman owns (MSFT); Finerman's firm owns (MSFT); Finerman owns (WFC) preferred; Finerman's firm owns (WMT)
BRIAN KELLY
Accounts Managed By Kanundrum Capital Own (DE)
Accounts Managed By Kanundrum Capital Own (FCX)
Accounts Managed By Kanundrum Capital Own (GLD)
Accounts Managed By Kanundrum Capital Own (MCP) puts
Accounts Managed By Kanundrum Capital Own (YGE)
Accounts Managed By Kanundrum Capital Own (TAN)
Accounts Managed By Kanundrum Capital Own (QLGC)
Accounts Managed By Kanundrum Capital Own USD
Accounts Managed By Kanundrum Capital Own (DNR)
Accounts Managed By Kanundrum Capital Own (TBT)
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 (AAPL) for clients
Edwards owns (AMZN) for clients
Edwards owns (C) for clients
Edwards owns (F) for clients
Edwards owns (GE) for clients
Edwards owns (GLD) for clients
Edwards owns (GOOG) for clients
Edwards owns (JNJ) for clients
Edwards owns (MSFT) for clients
Edwards owns (MUB) for clients
Edwards owns (ORCL) for clients
Edwards owns (POT) for clients
Edwards owns (TGT) for clients
Edwards owns (TTM) for clients
Edwards owns (VZ) for clients
JON NAJARIAN
Jon Najarian has no disclosures on (MUB)
TIM SEYMOUR SOT
Seymour had no disclosures for (TM) on 1/5/2011
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