look at etn, eaton. manufacturers electrical control, power management systems, hydraulics, truck transmissions and aerospace. i've been on this one forever. disappoint durable goods number. eaton is roaring. what's the deal? about a year ago they were buying cooper industries. $13 billion. now that deal is about to really start paying off. it could be seen as a quality report today, issued down side guidance the rest of the year. i personally don't see that. the quarter was actually far better than what most people expected. 7% increase. and from 5% this 3 approximate% or 4%. that's pretty robust. i don't think it's done. let's check in with the chairman and ceo of eaton to hear about the quarter and the company's prospects. welcome back to mad money. >> thanks, jim. >> when i listened to you in the summer, there were things that actually gained momentum almost if i can be honest week to week to where october seems to be the strongest period that you have had even though it's not covered by the quarter

yet, eaton is worrying. water the deal? what's the testament to the power of management and execution. a year ago we found out they were buying a corporate industry. now that deal is about to start paying off. it could be seen as a quality report. it issued downside guidance some people say for the rest of the year. underneath the headlines, the quarter was far better than most people expected. 7% in bookings, management raised the end market forecast this year to 3-4% in 2014. that's robust. the stocks took an 11% gain in late august. let check in with sandy cutler the ceo of eaton, bell come back to ""mad money." request itself. >> tanks, jim. >> a difference when i listened to you in the summer. there seem to be things that gained moment item almost if it can be honest week to week to where october seems to be the strongest period that you've had, even though it's not covered by the quarter. you can that be? how are you able to experience that? >> you are right, jim. we think a very solid quarter, sales up 42%. all time

just last week, we interviewed the ceos of avnet, ppg and eaton.e companies like so many u.s.-based enterprises diversified into europe many years ago as they recognized the european union opened up a gigantic market of 700 million people served by one currency. we forgot before the euro it was difficult to do business because of the fluctuating currencies. the euro truly did unite europe when it came to commerce, and enticed our companies to buy and build over there with alacrity. avenet, eaton and ppg, the proprietary coatings and glass company represent the cream of the crop in the respective industries and each of their managements knew that they offered superior products and therefore could take share from the locals. now if you recall, europe really didn't come out -- come down with its own version of economic flu until well after we hit the wall, and their illness was magnified by not one but two interest rate hikes that crushed industries in almost every country except germany. no business was prepared, and these three companies saw a drama

stephanie was on the eaton call. >> yeah. >> the conference call. and basically they said, look, you know, the first two weeks of september were great. the last two weeks we saw -- so, this stuff matters. it actually dictates behavior for corporates and individuals, the dysfunction. >> no question about it. we saw it today, too, in the consumer confidence numbers that were down and well below expectations. you know, when people are uncerta uncertain, they keep their hands in their pockets, they keep their dollars tightly clenched and they're not going to spend. we've seen that in consumer numbers. we've seen it in walmart's earnings as well. so, i think it affects volumes. it trims, certainly, some off of gdp prospectively and currently. this matters. and these guys are jerks. >> yeah. well, we'll talk about this. >> they're just jerks, seriously. i mean, there's no way around it. they're not leading. >> they're not leading. they're politicking. >> don't beat around the bush. >> they're not leading, they're politicking. as cnbc says, maria, they nee

>> eaton. eaton set the barlow enough at this point, and has not really reaped the benefits of their merger with cooper. so that's a cheap stock that can do better. you want to tread carefully here. cat, as i'm telling you, the stock egregiously overvalued with terrible management. it should be a lot lower. >> jci, check out that. >> dominic chu has a "market flash." >> yahoo! shares getting a boost, thanks to an upgrade over at bernstein research. they rate yahoo! an outperform. they had a prior market perform rating. it could rise to over 40 bucks a share given the value of the holdings in ali baba, the chinese commerce company, as well as the stake in the japan company. they say the ali baba share is $24 a share, according to the analysts at bernstein. >> bernstein is talking about -- thank you, dom -- an evaluation off ali baba of $190 billion. >> yeah, just barely get to a billion dollar. an awful lot of the performance is this one stock they have nothing to do about. >> the thing with yah

harding to that club, had followed him up the steps to the second balcony and shot him. >> john eatonreal gangland killing there, real violence, and it colored people's perception of the place. >> mike tramonte: the club was, began as the bayou, its genesis was in 1953. there we three owners at that time, a gentleman named mike munley, my uncle tony tramonte, and, of course, my father vince. >> bill whelan: well, the way i understand, mike was at the knights of columbus one night havin' a drink at the bar, and he said, i'm gonna open up a place and we're going to feature jazz six nights a week. and vince says, sure, i'd like to get a piece of that. mike says, sure. he says, but i don't have any money. he says, that's alright, i'll loan it to ya. and then, while he was standing there talking, his brother tony came in and he said, i'd like to have a piece of that too, but i don't have any money. mike says, hell, i'll lend you the money, too. >> bobby tramonte: basically that's how it happened, the three of them put up, uh, i think they put up $5,000 each. >> joe rinaldi: i know they got

ceo of eaton corp.ng us. ♪ "first day of my life" by bright eyes ♪ you're not just looking for a house. you're looking for a place for your life to happen. >>> although there are hopeful signs out of washington, there is still no definitive agreement to end the government shutdown and raise the nation's debt ceiling. the clock is ticking on this. and joining us right now to talk about the impact of all this is sandy cutler, the chairman and ceo of eaton corporation also a member of the ceo of fiscal leadership council for the campaign to fix the debt. as we get closer to this deadline, are you getting more nervous we will actually reach an agreement? >> well, good morning, becky. i think news of last night and the discussions you've been having this morning, it's a little bit encouraging we seem to be getting to the point where there's at least a coalition coming together to postpone the debt ceiling. and i think any economically intelligent person cannot find any solace in the fact we might have a debt

two that reported remarkable numbers, eaton and parker.nies. >> did you see langone? >> i thought that was a terrific thing. these th is america. these are the companies that make things that everybody wants. we spend too much time moaning, not enough time praising. >> somebody took note at parker, hanford and eaton, they're doing well right now. >> when stocks get better, look out -- >> i agree. we're going to have tremendous up side leverage. >> people should respect what you've done with langone. >> and dr. -- >> i got to have him. >> he's the best. >> good. >> how about thank you for what you've done. >> thank you for being a patient of ours, jim. we do all we can to keep you. and if you got a problem, call me, all right? >> i hope i don't have to but i know that you would take my call. >> absolutely. absolutely. thanks, jimmy. >> thanks, buddy. >> coming up, we're going to get some last thoughts from our guest host this morning. our guest host ken langone. we'll give him the last word when we return. ♪ [ male announcer ] staying warm

percent according to the news report from the american action forum in joining us now douglas holds eatonnt of the american action forum. it is fascinating to see with the old cliche as stark relief the incentive for young people. >> the naked truth. lou: they have incentives not to join obamacare to pay the penalty in be done with it. >> absolutely key group the young in principles between 18 and 35 traditionally have not bought health insurance they don't go out to ensure but now how can they lower them into the exchange's? if they don't show up the premium doesn't cost -- cover cost of care in there is a chance of a death spiral. so if you run the arithmetic the ec premium increases from nine or 600%, why would they buy after? the math is not promising. lou: i hear people talk about obamacare as social medicine it isn't these are all aligned against participation for those that is certain threshold of 302,000 individually they have every incentive to. >> we have had this discussion for years because there are all sorts of things to drive the premiums up the rules on a guaranteed issue

also william henry harrison is in its eaton james buchanan but in the next 40 or 50 years as it affirms the american sovereignty not until the civil war comes along that it is important that american in history the war every chartwell education group begins to recede from memory. ironically, from the soldiers fighting but in fact, it is a civil war that is responsible for bringing the "star spangled banner" to bring it to more providence. the song was popular but the unofficial anthem particularly in this region but union troops who were fighting for sumpter had come under fire there is a lot about the "star spangled banner" that resonated with union troops that day one of the reasons but song becomes our national and baum. part of the obscurity today is it is hard to understand what the war is fought about and hard to understand who won the war end you will hear different versions. probably the only people who have a good claim are the canadians. [laughter] they clearly cable out the best. great britain and united states each got something is out of it but the united states the war set

that is another accident just coming in in middle river, that one on eaton boulevard at whitemarsh boulevard. another accident on 32 at river road. one more on pennington avenue and aspen street. 95, that earlier problem is cleared but we're seeing minor delays on the west side of the beltway. outer loop 52 miles per hour. that is a look at the top side, still delay-free though we're seeing a little more volume there to the right. that's a look at the west side at 70. >>> here's don with the stories people are talking about. >> not everything is about the shutdown. the supreme court will hear a case today that could challenge the way individuals can contribute to political campaigns. >> reporter: the supreme court will hear oral arguments in mccutcheon versus the federal election commission. it will consider whether to undo some limits on contributions from the biggest individual givers to political campaigns. right now individuals can give $2,600 per candidate per election psyche well a cap of roughly -- cycle with a cap of roughly $12,000. that is -- $11223,000. that amount is what is at i

we have halliburton, we have eaton, some big industrial companies. we also have something like a coach coming out. so we have a lot of companies reporting. just get back to your initial comments, in terms of the marketplace, i think you can say that in earnings season, what have we learned? we learned that the bank companies are managing better, right? they're actually lending again. not great but they're lending again. that interest margins are better. and their capital levels are really good. those stocks are not at their highs. in fact, they're down 9%, 10% from their highs. i think that could snap back up. i think industrials, pockets of industrials where you're seeing better results. that's in hbac, nonres construction, which will be a big theme here in 2014. all the companies are saying that. i would say in technology there's pockets where you want to be. secular growth, cloud. i like adobe, too. >> we'll leave it there. great conversation, everybody. i could be talking to you about this subject all day because i have more questions to ask but

. >> we know from our work with honeywell and we know from our work with eaton that the greatest thing country in term of saving energy is not finding oil, but it's saving it for the buildings that are already there, but are there enough incentives to make it work? >> several years ago the government had a large stimulus package, and obviously a lot of that was targeted towards a smart grid. today there's very little government funding, but there's justification unto itself and when you employ smart meters you save money and grow revenue. yes you provide society benefits as well, and if you think about it, all of the trucks that have to roll to check your meters. you don't need those any longer. a line goes down and you used to have to wait until someone calls in. you can put that line up and you can get the people back on-line much more quickly. the benefits, whether it's saving costs and growing revenue and increasing customer satisfaction unto themselves makes sense. the justification is there. >> it's pretty clear that some of these state commissions aren't sensitive to what you're

as i study eaton and take a hard look at many of these companies including avnet, i see they've cut thee. the techs and the industries aren't the only companies that have diversified into europe. our packaged goods plays are dominant players there. none saw a downturn as huge as the cyclicals. europe could be a healthy offset to a slowdown in the u.s. caused by, yes, our dysfunctional government. something our domestic companies won't have in their arsenal. semiconductors, software, disk drives, you can expect many of our tech companies are going to have a similar boost. you can say the same about companies as diversified as honeywell, united technologies, elmerson, dupont. we'll also most likely see the big advance in sales that so many have been waiting for. now, you know i have long held it has been and continues to be stupid to wait for the increase in sales. because by the time it happens, these kinds of stocks will advance so far that you'll have missed the entire move. that's why i think you need to buy these stocks now on any material weakness that we get in this country, maybe

overturned a parking spot costa parks will eaton thousand dollars he also committed trouble related fraudor example, we were able to confirm he charge more than $80,000 of trips between 2005 and 2007 to california they were all fraudulent traveling to visit his elderly parents. another example he would stay in a hotel that far exceeded the allowable watching rate he charged the government $1,066 per night for four nights in london even though he had the opportunity to stand a different hotel at $375 per night. when confronted with this outrage mr. beale stated'' mackie and i am outraged at this''. 1998 to his retirement in 2013 he claimed he had a back injury that required first-class airplane accommodations and had documentation from a chiropractors' supporting his claim in the with his other dissections of his health his claim is dubious in one example when he traveled from washington to london his first-class ticket was 14 times higher than the coach fare the government was charged $14,000 as opposed to $1,000. he was never held accountable his spending and when interview those respons

eaton lowered their 2013 guidance. million in revenue growth quarter over quarter. basically zero growth at all, talking about 2013 overall sales flat. they went out and said that, overall just flat right off the top. that's a real problem with the big multi-industry companies. it was ugly over in asia. there may be a little spillover here. we have the nikkei up, most companies beating on the bottom line 66%, only about half are beating on the top line. that's a problem with all the major companies. the new york stock exchange this weekend is going to be testing their systems for a twitter ipo. now ipos are very different here, conducted differently than on the nasdaq. on the 11:00 show, we'll talk about those differences. but they're going to be stressing their systems. there will be designated market makers involved. they're going to run through, put lots of volume through the system and see how it reacts. it's think it's a prudent thing for them to do overall. finally, this is a big charity, the nyse charity day. th

. >>> eaton met earnings expectations. revenue came in a little short. finally, simon revenue results topped the isn'tance and the company is raising its quarterly dividend. we'll have results after after this. (vo) you are a business pro. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. (aaron) purrrfect. (vo) meee-ow, business pro. meee-ow. go national. go like a pro. >>> microsoft reporting profits better than expectations. revenue topped street estimates coming in at about $18.5 billion. kurt is an analyst at evercore partners. he upgraded the stock to overweight. kurt, you went against what a lot of wall street was thinking here. with microsoft, they were expecting the death of the pc and the drop in sales was really going to hit them hard. what happened? how did they beat? >> i think pcs, especially on the business side were better

eaton, sandy cutler said trucks are troughing. you knee what this makes me feel?es me feel a little better about caterpillar. a lot of people where the gang couldn't shoot straight, i myself was kit call about it. cummings is a great company. it has a lot to do with mining trucks. mining trucks. but i'm not walking away from cummins, even if they tell me to! it's too great an american company. >> and get a chance to buy it cleaner today. >> all right. we're going to keep an eye on stocks, including what's coming up at the opening bell. ♪ [ male announcer ] staying warm and dry has never been our priority. our priority is, was and always will be serving you, the american people. so we improved priority mail flat rate to give you a more reliable way to ship. now with tracking up to eleven scans, specified delivery dates, and free insurance up to $50 all for the same low rate. [ woman ] we are the united states postal service. [ man ] we are the united states postal service. [ male announcer ] and our priority is you. go to usps.com® and try it today. became big busi

last year, eaton corporation from ohio acquired cooper industries based in ireland for $13 billion. and then what did it do, reincorporated in ireland. the company expects to save $160 million a year as a result of the move. in july, omicron, the new york advertising group agreed to merge with its french rival roifl in a $35 billion deal. the new company will be based in the netherlands resulting in savings of about $80 billion a year. also in july parago a pharmaceutical company from michigan said it would acquire elan an irish company for $6.7 billion. they wilt reincorporate in ireland lowering its rate from 37% to 17% and saving the company an estimated $150 million a year, much of it in taxes. earlier in the year activists based in new jersey bought warner chillcott in dublin and said it would rye incorporate in ireland leading to $150 million in savings over two years. it would be easy for us to attack these companies for calling them immoral or inpatriotic. -- unpatriotic but it's much more constructive to step back and asked ask what's motivating these companies, why are the