Banks Pop Ahead of Earnings: Pro

Investors have already started to price in improved earnings in financial names ahead of quarterly earnings, Stuart Frankel's Steve Grasso said Friday.

"For me, I saw a lot of people front-running next week's earnings, buying JPMorgan, buying Citi, buying USBank, buying a lot of these names because in a rising-rate environment, those are the three names that stand to do the best."

On CNBC's "Fast Money," Grasso said that one regional bank – BB&T – had an "outrageous" chart.

TheStreet CIO Stephanie Link, who had been overweight banks all year, was partial to Key Corp, Wells Fargo and M&T Bank.

"Clearly, the regionals will benefit from a steeper yield curve," she said. "And not only that, a steeper yield curve implies better growth, so you should have better loan growth."

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Link added that that improvement should show up in the fourth quarter of 2013.

Stocks that continued to work included insurers Hartford and AIG, as well as housing-related companies Weyerhaeuser, Boise Cascade and Stanley Black & Decker.

Josh Brown of Fusion Analytics said that one good option was regional banking exchange-traded fund.

"For a lot of people, the simple solution is to get long the KRE," he said. "This is the ETF that owns the whole basket.

"It's not a bad option if you think this is a two- to three-year period of time where banks continue to do more lending and the yield curve stays where it is so that money can be made on all these deposits vs. the very small sliver that they've been able to make over the last five years."

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Trader disclosure: On July 5, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Enis Taner is long GS; Enis Taner is long ZNGA; Enis Taner is long SPY PUTS; Enis Taner is long FXE PUTS; Enis Taner is long WMT; Enis Taner is long CMI PUT SPREAD; Enis Taner is long UUP; Enis Taner is long MCD PUT SPREAD; Stephanie Link is long JPM; Stephanie Link is long WFC; Stephanie Link is long CSCO; Stephanie Link is long EBAY; Stephanie Link is long FB; Stephanie Link is long DXJ; Stephanie Link is long LINE; Stephanie Link is long KEY; Stephanie Link is long HIG; Stephanie Link is long F; Stephanie Link is long AIG; Stephanie Link is long OXY; Stephanie Link is long COP; Stephanie Link is long FESV; Josh Brown is long AAPL; Josh Brown is long F; Josh Brown is long DXJ; Josh Brown is long XLU; Josh Brown is long GLD; Steve Grasso is funds long AAPL; Steve Grasso is funds long F; Steve Grasso is funds long QCOM; Steve Grasso is long BA; Steve Grasso is long BAC; Steve Grasso is long BBRY; Steve Grasso is long GDX; Steve Grasso is long GOOG; Steve Grasso is long HERO; Steve Grasso is long HPQ; Steve Grasso is long MHY; Steve Grasso is long LNG; Steve Grasso is long MJNA; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long QCOM; Steve Grasso is long S.