The stock market often sends signals that appear to be confusing. This week, Intel Corporation (NASDAQ: INTC) provided a classic example. On June 24, the company announced it was shutting down its automotive processor business and laying off most of the division's employees.
In a seemingly counterintuitive response, the stock surged over 6%, pushing into the $22.50 range. This positive reaction raises a key question for investors: Why would the market reward a company for news that, on the surface, seems negative?
