Experts believe a wider spat with Europe would be much more damaging than the current tit-for-tat with China.Traderead more
After the Fed released minutes of its last meeting, the bond market signaled it fears the Fed will not be aggressive enough with its rate cutting.Market Insiderread more
The Fed minutes also note that "a couple" members wanted a 50 basis point cut, based primarily on the weak inflation readings.The Fedread more
Markets pay particular attention to Italy's spending, given its public debt pile. This stands at above 130% of its growth rate, one of the highest in the world.Politicsread more
Flight bookings to Hong Kong have fallen 10%, hit by the unrest in the city, said Alan Joyce, the chief executive of Australian carrier Qantas Airways.Airlinesread more
Analysts generally doubt how effective the People Bank of China's latest interest rate announcement will be in significantly helping businesses grow.China Economyread more
These in-demand skills can command top pay packets, says Feon Ang of professional networking site LinkedIn.Get Aheadread more
Japanese manufacturing activity shrank for a fourth straight month in August as export orders fell at a sharper pace.Asia Marketsread more
The Washington governor had centered his campaign around climate change, calling it "the most urgent challenge of our time."Politicsread more
The inversion is seen by many veteran traders as an important recession omen, though the timing on the eventual downturn is less predictable.Bondsread more
Here's what Nordstrom reported for its fiscal second-quarter earnings.Retailread more
Shares of troubled building-material supplier Lumber Liquidators jumped 20 percent after hours on Monday when Whitney Tilson proclaimed the company to be "sloppy and naïve, but not evil."
Tilson, the founder and managing partner of Kase Capital Management, published his latest on the company at SeekingAlpha.com, noting that he has covered his short position on the company earlier Monday. The hedge fund manager had originally told CBS's "60 Minutes" about Chinese-made flooring with higher levels of formaldehyde than permitted under California's health and safety standards.
That report, and subsequent news, tanked the stock: It had traded at more than $67 in February before warning investors of the forthcoming investigative segment, and shares closed Monday at about $14.
"In the past week, I've received information that leads me to believe that senior management of Lumber Liquidators wasn't aware that the company was selling Chinese-made laminate that had high levels of formaldehyde," he wrote. "If this information is correct, then the company was sloppy and naïve, but not evil."
Tilson wrote that the lack of a "smoking gun" for Lumber Liquidators means the the "doomsday" scenario of bankruptcy and a zero-dollar price-tag for the stock is less likely.
The investor said his information, the specifics of which he said he couldn't reveal, indicated the company's management continued to sell the laminate in question after a bombshell report "in large part because they genuinely believed that the product was safe and compliant."
Still, Tilson emphasized that his new information did not change his mind "that the company was, in fact, selling dangerous, formaldehyde-drenched laminate and that it completely bungled damage-control efforts after the 60 Minutes story aired."
Before Monday, TIlson wrote, he had maintained "and even added to" his short position in the stock, but he now no longer finds the company to be an "attractive short."
"In the court of public opinion and among regulators, judges and juries, intent matters," he wrote. "If the senior management of Lumber Liquidators didn't have evil intent, then the downside scenarios for the company (and the stock) are less likely and the upside (recovery) scenarios are more likely."
For tax reasons, Tilson said, he covered his short by purchasing in-the-money call options expiring next month, which he expects to close in the new year.