Why isn't the price of oil making the stock market tumble?

[Mark Heide]

In previous times when the price of oil has shot up. Stocks used to drop. But, it appears that the stock market has been staying up. Are we in a Santa Claus market already?

[midas]

Oil futures are in the 30s - most people think this is a short term blip.

FYI - the cost of oil is only 45% of the total cost of a gallon of gas.

[adios]

Well just because it hasn't happened doesn't mean it won't happen. The bond market doesn't seem to be predicting robust growth in the economy to me. Lower interest rates help support stock valuations as well. Corporate balance sheets in the aggregate are decent and productivity is still fairly strong. Business's are making money and as another poster pointed out, the price of oil is not expected to stay this high (but I wouldn't bet the ranch on that one though).