According to Silicon Alley Insider, traders on Wall Street were circulating a rumor that Yahoo!'s (YHOO: sentiment, chart, options) CEO Jerry Yang was resigning. Later in the day, however, YHOO strenuously denied the rumors, pointing to Yang's Wall Street Journal interview yesterday and his scheduled attendance of the Sun Valley conference later this week. With the on-again, off-again relationship between Microsoft and YHOO, and the trouble Carl Icahn is stirring up with YHOO's board, this soap opera seems far from running out of material anytime soon.

On a side note, it seems that YHOO shares rolled off a cliff at about 3:45 p.m. Eastern time this afternoon. I'm sure it's not the resignation rumors, but the stock has slipped to a 3% loss just before the close.