Out Fox The $treet

Forget the Fed and focus on the companies. both Zoe's Kitchen (ZOES) and Ambarella (AMBA) are on the radar for next week. Zoe's Kitchen has held up well despite the overall weakness in most restaurant stocks and Ambarella needs to show that the company has moved on past the weakness of previous top customer  GoPro (GPRO) . Disclosure: Long ZOES. Please review the disclaimer page for more details. 

With the stock getting hit today, it's worth a refresher on the valuation of American Airlines (AAL). Sure the stock has jumped from $24 to $36 since the merger with U.S. Airways was competed back in December, but the new airline expects to make nearly $6 next year. With the stock trading at only 6x earnings expectations, it still trades like the old airlines that faced extreme competition and wouldn't have been this profitable in the first place. Why shouldn't a healthy industry trade at a multiple of 10x earnings, at least? The only disagreement is that Cramer says the deal shouldn't have been approved, but I tend to disagree. The U.S. needs a healthy airline industry in order to update facilities and expand and the only way this is possible was via consolidation. The country now has 3 legacy airlines along with a very strong Southwest Airlines (LUV) . Cramer might be correct about several routes lacking competition, but the discount airlines will work over the next...

More on The Jones Group. The stock likely sold off way too much, but I don't have a comfortable feeling on this sector and we're already invested in Liz Claiborne (LIZ). Amazing that Cramer is always portrayed as the 'Crazy One' but he seems to have a calming effect on some of the stocks he brings onto his show. JNY CEO on Mad Money tonight. As I said earlier, bad companies make excuses. Sure they may have a higher mix of shoes, but they clearly didn't position themselves correctly coming into the Q. Though Wall St tends to over react so don't join them.

Yesterday the market got most of the negatives holding it back solved.... Goldman Sachs, BP, and FinReg. Heck, even Apple resolved the issue with the iPhone4 today. So what happened other then a 200 point jump in the Dow? Oh wait, the market didn't even jump at all and had a nearly 3% drop. Huh? Were the earnings of Bank of America (BAC) and General Electric (GE) that horrible? Oh wait, they actually beat earnings and the news about the FinReg costs to BAC shouldn't have been that shocking. Consumer Confidence had a huge drop, but who was shocked by that? The markets saw a huge drop over the May/June peirod. What consumer could be confident? Maybe today's huge drop was just a headfake from an overbought position. The news going forward will be bullish for a market run. Nothing to hold us back now and a lot of possible bullish moves by Obama and the Dems could be coming down the pipeline. Next week will be interesting as everybody frets about the technicals of the SP500. Eve...

Incredibly Apple (APPL) hit another new all time high today. Ok, it's not really all that incredible to us considering we've suggested $300 and $1,000 [Apple to $1,000] targets during 2009. Still its very rare for a tech stock to exceed the 2000 high. Part of the reason for the jump today was just the overall market, but it didn't hurt that Cramer was pushing the stock last night on his Mad Money show. Cramer is bullish because the new Apple iPad product is gaining key corporate support especially in the Healthcare and Legal areas. Read doctors and lawyers. That could really feed into Mac sales as well. With the cash on hand and what could be yet another strong product with the iPad, AAPL is likely a must own for the next couple of years.

The University of Michigan consumer sentiment survey came out with much worse then expected results today. Why in fact is the consumer sentiment down in August from July? And why are consumers have such lower personal expectations while being more bullish on the national economy? My guess is that the media spent most of July and now August obsessing about job losses, foreclosures, and such that its gotten the average consumer downbeat when they should be more positive. The economy clearly isn't peachy so it's not about whether its a great economy, but consumers should be much more bullish then they were in June and even July. Its so much clearer now that the economy has turned the corner and at this point all we lack is a stronger consumer in the US for an all out bullish scenario. About the only reason a double dip recession could happen is if the consumer were to remain hidden. Luckily though, consumer confidence surveys don't always align with spending. Consumers tend t...

Interesting news from China today. Not sure where the original feed is, but this Stop Trading with Cramer highlights his views on the news. That is mindboggling that China would urge the replacement of that many TVs, but I guess the issue is that without the US and Europe buying they need to create domestic demand. Not much more to add. Just watch the video.....