Yahoo shares lose ground as Microsoft deal fails

Yahoo shares continued to fall in the regular session after losing 3 percent in heavy trading before the opening bell. The stock declined $1.23, or 5.2 percent, to $22.29 after the open while Microsoft's stock rose $1.09, or 3.9 percent, to $29.33. Microsoft was the volume leader in premarket action with 3.2 million shares trading hands.

Google advanced $19.50, or 3.5 percent, to $572.45 in midmorning trading.

Shares of Perfect World Co. Ltd. continued to soar after rising 11.2 percent premarket, adding $3.31, or 15.1 percent to $25.20 in the regular session.

The Chinese online gaming company raised its guidance for the second quarter on favorable marketing results and new product launches.