MSFT closed at $32.47 the day before the YHOO news came public. I"m sure many on wallstreet knew the offer was coming which was why MSFT's stock was depressed even though they had reported 2 monster Qtrs. The stock should have been trading in the high $30's after their 2nd great Qtr.
I think MSFT goes to $35 by the end of the week. Their major distraction is now gone. YHOO probably finishes the week around $20. Monday should be interesting.
Yahoo opens around $25 but falls further as the sell gusher won't let up. Softie pops 2 or 3 to 31/32 at the open and continues rising towards 34 over the next couple weeks. There is going to be a huge unwind of the short Softie/long Yahoo trade! Softie is dirt cheap and the cloud has been lifted.