Japan and South Korea are part of a complex and tightly linked supply chain that produces electronic goods such as smartphones and laptops.Technologyread more
The Massachusetts senator's alarm-sounding on consumer debt neglects to measure it against the growth in the economy and the ability to pay.Economyread more
Stocks in Asia Pacific were edged up on Tuesday following overnight gains on Wall Street as the earnings season rolls on.Asia Marketsread more
Equifax will give consumers a range of options for monitoring their credit or making claims of fraud or data misuse, part of a $425 million restitution fund.Technologyread more
The deal between the White House and Democrats was earlier expected to raise the debt ceiling for two years and permanently end the sequester.Politicsread more
Britain's Antstream is jumping into the cloud gaming battle with a streaming platform for retro titles. And Tencent just backed the company.Technologyread more
The deal could be announced as soon as next week, according to the report.Technologyread more
President Donald Trump held "constructive" discussions on a range of economic issues including trade and national security issues.Technologyread more
Secretary of Education Betsy DeVos and her family have seen their investments skyrocket since President Donald Trump started enacting pro-business policies. Meanwhile, DeVos...Politicsread more
See which stocks are posting big moves after the bell on July 22.Market Insiderread more
The construction industry is heavily dependent on Hispanic and Latino workers, a workforce that diminished during the last housing crisis and has not come close to full...Real Estateread more
In the wake of disappointing earnings that sent shares tumbling 10 percent, Eaton CEO Sandy Cutler not only defended his company, but he charged the selloff was due, in part, to an obsession with inversion.
By, Cutler was referring to a phenomenon in which a company merges with a foreign firm, and then shifts income overseas to the nation with the lower corporate tax rate.
Speculation on the Street suggested that Eaton was planning to engage in inversion, by spinning out its vehicle division. Had it happened, the vehicle division would have immediately showed higher profits, simply due to lower taxes.
However, Cutler suggested the belief among Wall Street pros that Eaton would spinout its vehicle division was not only assumptive, it was complete unfounded.
"In every public setting, we've emphasized it was not our plan, nor our intent to divest our vehicle business," Cutler said on "Mad Money". "Unfortunately, there's been an inversion mania, in which a number of (professional) investors said it would make sense... That has never been our intent."
Nonetheless the assumption, led to a sharp selloff after earnings, in which Eaton effectively took potential off the table at least for 5 years.
Shares dropped from about $80 before the release to approximately $67.
"Yet, the story hasn't changed," Cutler added. "We hit revenue on the button and we exceeded earnings by 1 cent and we concluded painful settlements for two 10-year long pieces of litigation, and we sold 2 aerospace businesses successfully in the quarter, while still integrating our Cooper acquisition."
Read more from Mad Money with Jim Cramer
Shopping? 4 stocks with long-term catalysts
Cramer OKs 3 growth plays in China
Has this old dog learned new tricks?
Jim Cramer wasn't sure what to make of the circumstances. He quoted a downgrade from Goldman in which analysts said more disappointment could lie ahead in the second half. "We have lost some confidence…due to a series of missteps over the past 5 quarters," the analysts said.
"We understand the importance of execution," Cutler replied, "and we take it very seriously."
Call Cramer: 1-800-743-CNBC
Questions for Cramer? firstname.lastname@example.org
Questions, comments, suggestions for the "Mad Money" website? email@example.com