See Saw Day? Or Dow Above 12,000?

Yesterday the Dow did trade over 12,000, although it didn’t last. The futures are kind of flat this morning. Yesterday Apple and Ebay beat expectations, but AMD reported lower than forecast earnings. Citigroup, Bank of America Honeywell and Pfizer all beat forecasts while Coca-Cola posted improved results. Also on the earnings front, McDonalds hit their recently raised forecasts. All this points to a good day for the markets and a close over 12,000.

So why then are all the futures so flat? Well I think it has a lot to do with OPEC meeting to discuss production cuts. Part of the reason the market was doing so good was the recent slide in oil prices. If OPEC decides to cut production to get prices over $60.00 per barrel then it could put a damper on Wall Streets recent party. I personally can’t see oil staying over $60 for too long. High oil prices only promote more conservation and investment in alternative fuels. What OPEC’s greed will end up doing is ensuring that people find alternative sources of energy and thereby reducing the overall demand for oil, driving the price down, then more supply cuts and so on…. In the end they will be hurting themselves. But hey, what do I know.