What: Shares of Pacific Biosciences of California (PACB -3.61%) surged as much as 37% in late trading today after rumors emerged of a potential buyout. With just minutes left in the trading day, shares had settled to a 25% gain.

So what: Reuters is reporting that Roche Holding AG has approached Pacific Biosciences about a potential acquisition. According to Reuters' sources, the deal hasn't moved forward because of a disagreement on a potential buyout price.  

Now what: This isn't really a case of "buy the rumor sell the news," rather it's just a rumor. It's a nice pop for investors today, but if a deal doesn't come through, the stock could fall back to where it was earlier in trading today.

The more important event this week is earnings, which come out after the market closes Wednesday, February 3. After a surprise profit of $0.02 per share last quarter investors will be looking for momentum, and rest assured, management will probably be asked about the potential acquisition on the conference call with analysts. Check back here after the numbers are out to see our take on the results.