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(Updates from 11:39 a.m. ET with closing information.)



) --


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shares jumped 7.07% to $34.68 following the news that CEO Steve Ballmer will retire.

The company


that Ballmer, 57, will retire after his successor is chosen within the next twelve months. "There is never a perfect time for this type of transition, but now is the right time," Ballmer said in a statement. "We have embarked on a new strategy with a new organization and we have an amazing Senior Leadership Team." He added that because of the company's ongoing transition into a device and services company, "we need a CEO who will be here longer term for this new direction."

Microsoft's Board of Directors appointed a committee to direct the search for the next CEO, chaired by John Thompson, the board's lead independent director, and includes founder and Chairman of the Board Bill Gates, whom Ballmer succeeded as CEO.



shares plummeted 11.65% to $19.18 after the release of mixed quarterly earnings.

The Internet radio pioneer


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expectations, earning 4 cents a share on record non-GAAP revenue of $162 million in its fiscal second quarter, a 58% year-over-year increase.

Analysts polled by

Thomson Reuters

, expected the Internet radio company to earn 2 cents a share on revenue of $156.22 million. Its total hours of listening grew 18% year-over-year to 3.88 billion hours and its share of total U.S. radio listening grew to 7.08% from 6.02% in the prior year's quarter.

However, guidance was weaker than anticipated. For the third quarter, Pandora expects revenue between $174 million and $179 million and earnings between 3 and 6 cent a share, while analysts were expecting sales of $170.45 million and earnings of 7 cents a share. The company expects total revenues for this fiscal year between $640 million to $655 million and EPS between breakeven and 5 cents; analysts were looking for 5 cents on $634.08 million.

"Our second fiscal quarter was an important inflection point in Pandora's history," CEO Joe Kennedy said in a statement. "To drive future growth, we are accelerating investment in new technologies, channels and capabilities that maximize the value Pandora delivers."

Wall Street analysts were


following the report, with some questioning the impact iTunes Radio will have on Pandora.



shares began to recover from yesterday's losses, rising 0.64% to $30.66 Friday after the company suffered significant technical issues regarding equity and options trading.


shut down

at the Nasdaq stock exchange, which is run by NASDAQ OMX, for about three hours on Thursday. All trading halted at 12:14 pm, preventing some of the most active tech stocks from trading. NASDAQ OMX blames the shutdown on problems with their Securities Information Processor, the system that collects and disseminates quotes. All stock trading resumed by 3:25 pm.

"Responding to the SIP issue, in order to protect the integrity of the markets, NASDAQ OMX issued a regulatory halt for all trading in NASDAQ-listed securities," NASDAQ OMX said in a statement. "In the first 30 minutes, technical issues with the SIP were resolved. For the remaining period of time, NASDAQ OMX, other exchanges, regulators and market participants coordinated with each other to ensure an orderly re-opening of trading in NASDAQ-listed securities. Trading resumed and the balance of the trading day finished in normal course."

However, the glitch, coupled with Facebook's famously bungled IPO on the Nasdaq begins to put put into question




will choose the Nasdaq for its own upcoming IPO.

Twitter reportedly wants a "low profile" IPO, something that may be difficult to achieve with an exchange recovering from two high-profile technological errors in eighteen months.

Closing prices

: MSFT jumped 7.3% to $34.75, P dropped 12.9% to $18.91 and NDAQ was 1.2% higher at $30.83.


Written by Laura Berman in New York

Follow @LauraBermanTST