NEW YORK (Reuters) - Microsoft Corp Chief Executive Steve Ballmer said a Web search advertising deal with Yahoo Inc makes economic sense and may still be possible, though the two sides are not in any discussions.

Shares of Yahoo jumped as much as 17 percent as investors hoped Ballmer's comments could lead to the two sides returning to the negotiating table. But gains were pared back to about 12 percent after Microsoft issued a statement saying it had no interest in buying Yahoo. (READ MORE)