Updated from 2:04 p.m. EST

Stocks on Wall Street teased the flat line Wednesday afternoon as investors sorted through another round of earnings reports and a cut in oil production cut from OPEC.

The

Dow Jones Industrial Average

was down 25 points at 8899, and the

S&P 500

was off by half a point at 912. The

Nasdaq

was up nearly a point at 1590.

Oil-exporting cartel

OPEC

said Wednesday it will cut its production target by another 2.2 million barrels a day starting in January.

The cut, which could help stabilize oil prices that have fallen with global economic hardships, was slightly more than expected. But crude oil was declining $1.96 to $41.64 a barrel.

"Right now the market doesn't care about the supply part of the equation," says Darin Newsom, DTN Senior Analyst. "It's dealing with lack of demand from consumers -- and investors - at this point," he says.

Morgan Stanley

(MS) - Get Report

helped set the tone Wednesday morning, posting a wider-than-expected loss ahead of the opening bell. The bank holding company said it lost $2.37 billion, or $2.34 a share, in the fiscal fourth quarter. Analysts had forecast a loss of 34 cents a share.

Citigroup

(C) - Get Report

garnered headlines Wednesday morning related to its business strategy.

The Wall Street Journal

reported that federal banking regulators are involved in the internal discussions about the bank's strategic direction and are discouraging executives from pursuing certain acquisitions. Separately, the

Financial Times

reported that Citi plans to merge its investment and corporate banking operations in an attempt to break down barriers between its businesses.

ConAgra Foods

(CAG) - Get Report

recorded in-line second-quarter profit of $168.1 million, or 37 cents a share, which marks a 31% slump from a year ago when the maker of Chef Boyardee and other brands posted $244.8 million, or 50 cents a share.

General Mills

(GIS) - Get Report

posted second-quarter earnings of $378.2 million, or $1.09 a share, which was down from the $390.5 million, or $1.14 a share, the cereal maker recorded a year earlier.

Citing weakening demand for its hard drives,

Western Digital

(WDC) - Get Report

will cut 2,500 jobs, or about 5%, of its global workforce, as well as executive pay.

As U.S. automakers

General Motors

(GM) - Get Report

,

Ford

(F) - Get Report

and

Chrysler

continued to wait on word from the White House of an

auto-industry rescue plan

, Tokyo-based

Honda

(HMC) - Get Report

cut its profit forecast and announced a 10% pay cut for its managers.

In

analyst actions

,

Apple

(AAPL) - Get Report

was trading lower Wednesday after suffering a downgrade at Oppenheimer to perform. Apple says

Steve Jobs

will not appear at Macworld 2009, and that news again brings the CEO's health into question.

Meanwhile, the fallout from the

Bernard Madoff

scandal continues to play out. Late Tuesday,

Securities and Exchange Commission

Chairman Christopher Cox demanded an internal investigation of why regulators from his agency failed for a decade to investigate the Wall Street money manager, who last week was charged with running an elaborate and far-reaching Ponzi scheme that lost an estimated $50 billion for investors. A formal investigation of complaints would have forced Madoff to provide documentation years ago.

On Tuesday, the Fed cut its federal funds rate target to a range of 0% to 0.25%, a steep cut that surprised Wall Street and set a historic low for the key rate.

The 10-year Treasury was up 20/32 to yield 2.2%, while the 30-year note was up 1 26/32 to yield 2.7%. The

dollar

was mixed against other major currencies. Gold was rising 60 cents to $869.10 an ounce.

In Asia, Japan's Nikkei and Hong Kong's Hang Seng edged higher. In Europe, Germany's DAX and France's CAC-40 edged lower

Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. AP contributed to this report.