Stocks Drift Higher

Wall Street moved forward slightly during trading yesterday. The NASDAQ posted the strongest showing overall with a 0.36 percent (8.47 points) climb at the closing bell. The S&P 500 (0.17 percent, 1.94 points) and Dow Jones (0.11 percent, 11.86 points) lagged further behind, but overall it was a good day for American markets.

According to CNNMoney.com, stocks jumped at the opening bell Wednesday ahead of several major economic readings due later in the week. Data reports on unemployment, inventories, and consumer confidence are due out later in the day and reactions to them will likely drive investors.

As the markets begin to finally show signs of digging out of their 2008 and 2009 declines, merger and acquisition deals are likely to spark up.

According to Reuters, Great Britain’s Barclays is on the lookout for potential deals with an American regional power such as PNC, Fifth Third or SunTrust. Any potential deals would be put together as a means of acquiring new depositor bases while also spreading risk in case of potential future meltdowns.

In other news, while troubles at Toyota have claimed most of the headlines in the past month or so one American automaker is still flat on its back. American consumers will almost certainly show brand loyalty to Toyota and within a year or two no one will even remember the recall crisis, the tragic accidents, or the bad publicity.

Meanwhile, Chrysler has seen sales to consumers drop by nearly 44 percent this year alone. Consumers simply seem uninterested in purchasing new Chrysler, Dodge or Jeep vehicles despite their good quality and relative affordability. General Motors has come on somewhat strong after receiving its government bailout, and Ford has been able to continue on without any bailout, but Chrysler has been mired for several years.

In terms of market presence, Chrysler has always been a second fiddle to the other Detroit giants. However, in the past several years the company has become a runner-up to Toyota and Honda as well. It seems unlikely that the company can survive much longer without a serious revitalization of its product lines.