US STOCKS-Wall Street climbs ahead of Apple event

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* Losses in Citi, JPM shares pressure banks index
* Apple top boost to S&P 500, Nasdaq
* Tesla gains for fifth straight session
* Indexes up: Dow 0.45%, S&P 0.93%, Nasdaq 1.52%

(Updates to early afternoon)
By Medha Singh and Devik Jain
Sept 15 (Reuters) - Tech stocks pushed Wall Street higher on
Tuesday led by Apple shares ahead of a launch event by the
company, while investors hoped the Federal Reserve would
continue with its dovish stance as the central bank's two-day
meeting got underway.
Apple Inc's AAPL.O 1.8% rise was the biggest boost to the
S&P 500 and Nasdaq in the run-up to a broadcast event, where the
company is expected to unveil updates to products such as the
Apple watch and iPads. The event begins at 1 p.m. ET (1700 GMT).
"(Apple is) always trying to introduce something that is
game changing (and) Wall Street is looking to the Apple event
and expecting something favorable to come out of it," said Sam
Stovall, chief investment strategist at CFRA in New York.
The tech index .SPLRCT jumped 1.5%, extending its recovery
from a brutal sell-off earlier this month that had halted a Wall
Street rally.
"The correction has probably run its course and markets are
now back to focusing on some of the positives," said John
Praveen, portfolio manager at QMA.
"Some positive news on the vaccine front and economic data
suggest this global recovery after the COVID recession is on
track, and the markets are supported by a very friendly Fed."
In its first policy meeting since Fed Chair Jerome Powell
announced a more accommodative stance on inflation, the central
bank could switch its Treasury purchases toward more long-dated
debt to keep long-term yields low, some strategists said.
Expectations from the Fed have increased amid a stalemate in
talks for fiscal relief and economic reports suggesting an
uneven recovery from the coronavirus-induced recession.
Data on Tuesday showed U.S. factory output increased
strongly in August. Separately, U.S. import prices increased
more than expected for the same month, supporting the view that
inflation pressures were building up. Earlier in the day data showed China's industrial output
accelerated the most in eight months in August. At 12:28 p.m. ET, the Dow Jones Industrial Average .DJI
was up 125.51 points, or 0.45%, at 28,118.84, the S&P 500 .SPX
was up 31.57 points, or 0.93%, at 3,415.11. The Nasdaq Composite
.IXIC was up 168.22 points, or 1.52%, at 11,224.87.
Citigroup Inc C.N dropped 3.7% following a report that
federal regulators were preparing to reprimand the U.S. lender
for failing to improve its risk-management systems. JPMorgan Chase & Co JPM.N slipped 2.1% as it lowered its
full-year net interest income forecast. The banks sub-index slipped 1.7%.
Tesla Inc TSLA.O added 5.8%, rising for the fifth day, as
anticipation heats up for its "Battery Day" event next week,
where Chief Executive Officer Elon Musk is expected to tout the
latest improvements in the electric-car maker's battery
technology.
Advancing issues outnumbered decliners for a 2.08-to-1 ratio
on the NYSE and a 1.68-to-1 ratio on the Nasdaq.
The S&P index recorded 19 new 52-week highs and no new low,
while the Nasdaq recorded 58 new highs and 12 new lows.