With all the news about Yahoo that emerged after the market closed yesterday – Google! Microsoft! AOL! Murdoch! – the stock today erupted in a frenzy of highly volatile trading, closing well above Microsoft’s offer price. Or, you know, it didn’t.
YHOO closed up a whopping 82 cents, or 2.95%, at $28.59, and you’ve got to consider that half of that was general market sentiment: the Nasdaq as a whole rose 1.27%. And volume in YHOO today was 32.5 million shares, significantly lower than YHOO’s average volume of 44.3 million shares. Yet more proof, if proof were needed, that stock trading really isn’t driven by news, most of the time.