'Fast Money' Recap: Google Gah-Gah

Mixed earnings reports left U.S. stocks mostly unchanged Thursday. The Dow and S&P 500 both posted minute gains, while the Nasdaq was down 0.4%. Internet company Google (GOOG Quote) reported earnings after the close.

On CNBC's "Fast Money" TV show, Pete Najarian said Google's report was very positive. The traders called into question data from comScore (SCOR Quote) suggesting the number of clicks on Google's ads has decreased.

Jeff Macke said kudos to those who had been long Google into earnings. He recommended taking some of the position off the table after the $70 move the stock made after hours. He said Google has been a great application but needs to morph into other businesses.

Guy Adami said that Google may be a proxy for the S&P 500. He said the bullish news for Google should help the broader market tomorrow.

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Karen Finerman said that the news may be good for Yahoo! (YHOO Quote) if the entire Internet market has grown. If, on the other hand, Google is taking market share, then that's bad news for Microsoft (MSFT Quote) and Yahoo!.

Macke said he doesn't think that Yahoo!'s negotiating position against a hostile takeover from Microsoft has improved on Google's earnings. He said Yahoo! will have to prove to shareholders that it's in control of its business and can maintain its independence when it reports earnings.

Najarian recommended buying Yahoo! stock and selling Yahoo! calls.

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The stock market shrugged off news of writedowns at Merrill Lynch (MER Quote). Adami said that he believes there is a light at the end of the tunnel of the credit crisis. He noted that Merrill CEO John Thain had somewhat reneged on his earlier promise not to raise capital. He said he likes Merrill here.

Finerman said that Thain had said he would raise capital in a way that would not dilute equity. She believes the bank is done raising dilutive capital, she said.

Macke noted that Citigroup (C Quote) may disappoint, but he believes almost all the bad news for the financials is already priced in. He recommended buying the financials on dips.

Najarian agreed, saying he would follow a similar strategy for JPMorgan (JPM Quote), Wells Fargo (WFC Quote) and Merrill. He said he also likes the Financial Select Sector SPDR (XLF Quote).

Adami predicted that the financial stocks would be off to the races if Oppenheimer analyst Meredith Whitney upgrades the sector.

Pfizer (PFE Quote) reported today that sales of Lipitor were down. Adami said the company needs to do something to generate a pipeline.

It was a tough day for Nokia (NOK Quote), Najarian said. The company reported earnings today. He said that selling cheaper phones in emerging markets is cutting into margins. He said the company needs improved penetration of U.S. markets.

Adami said Corning (GLW Quote) is a winner in the cell-phone game because the company makes the glass found in cell-phone displays.

Najarian also noted that Potash (POT Quote) shares got clobbered today, but he noticed bullish options activity in the name. He said he's a buyer on the pullback.

Of Marriott's (MAR Quote) earnings, Macke said the hotel sector has already been hurt by the weak economy. He said, though, that the real indicators of the health of the economy are in gaming names like MGM (MGM Quote). Vail Resorts (MTN Quote) is also getting stomped, he said.