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Market Wrap: Apple's Magnificent iPhone 5; Chesapeake Sells; JPMorgan Shifts Investment Bank

September 12, 2012 5:29 PM EDT
Market wrap-up for September 12th

End of the Day: S&P 500 up 3.0 to 1,436.56; Dow Jones up 10.0 to 13,333.35; Nasdaq up 9.8 to 3,114.31

The following is a brief summary of events moving markets today:
  • iPhone 5 - bigger, lighter, functional: Apple (Nasdaq: AAPL) debuted its new iPhone 5 today and the device is sure to deliver. According to the spec sheet, the iPhone 5 is 18 percent thinner and 20 percent lighter than the iPhone 4S and the device boasts a number of new features, including an all glass and aluminum body, a 4-inch retina display and A6 chip, which is 2x faster.

    Other items Apple showed off include "Earpod" headphones, new versions of its iPod device, and an updated iTunes.

    For more color, click here.

  • Less spending on defense = imminent consolidation in the sector: Earlier today, BAE Systems (OTCBB: BAESY) and Airbus parent European Aeronautic, Defence & Space Co. (OTCBB: EADSY) affirmed that they were in talks for a possible combination which would create a formidable force to take on the likes of Boeing (NYSE: BA), Lockheed (NYSE: LMT), Northrop (NYSE: NOC) and others.

    Under terms of the deal, EADS would control 60 percent of the venture with BAE claiming the rest. In addition, government of France, the U.K. and Germany would be issued special shares and BAE shareholders would get £200 million for dividend payout syncopation.

    Click here for more color.

  • The Decision: Fed chair Ben Bernanke and the FOMC are meeting today, with a rate decision expected out tomorrow at 12:30pm. Set your calendars.

  • De-complication via separation: JPMorgan (NYSE: JPM) will be reorganizing its investment and corporate banking division into two units, according to an internal memo circulated today.

    The memo stated that investment bank equities division head Carlos Hernandez will oversee prime brokerage services, while Tim Thorsby will take over the role of global equities head.

  • Firing up some sales: Chesapeake Energy (NYSE: CHK) entered into agreements for about $6.9 billion in divestitures of Permian Basin and noncore leasehold assets. The company will use a portion of the proceeds from these asset sales to fully repay its $4.0 billion of term loans during the 2012 fourth quarter.

    Click here for more color on the sales.

  • Take that, Merkel: Germany's top court -- the Federal Constitutional Court -- overturned motions set to stop the government from contributing funds to the European Stability Mechanism (ESM). Judges ruled that parliament must approve any increase in the country's $245 billion of liabilities.

  • No word on whether we're happier: According to data from the U.S. Census Bureau's annual snapshot of income and living standards, average American household income fell for the fourth time in as many years. Data has the median U.S. household income at $50,054 in 2011, down 1.5 percent from 2010's reading.

    The U.S. poverty rate -- which is defined as a household with a family of four bringing in less than $23,021 -- slipped 0.1 point to 15.0 percent. Many argue the number isn't a good measure as it doesn't include government safety nets like unemployment insurance and tax credits.

    Keeping that in mind, the number and overall market share of people without health insurance fell as more and more were absorbed by government health plans like Medicare and Medicaid.

  • A sad day on a sad anniversary: On the anniversary of September 11th, when all Americans mourned the loss of innocent lives, U.S. ambassador to Libya Chris Stevens and others were killed by alleged Libyan religious extremists. We're not going to get too far into the story due to political issues, but the tragic event should be noted.

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