S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
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* Apple rises ahead of virtual product launch
* Tesla gains for fifth straight session
* Carnival falls after $3 bln loss warning, stock sale
* Citi drops on report federal regulators to reprimand co
* Indexes up: Dow 0.45%, S&P 0.70%, Nasdaq 0.94%
(Adds comment, details; Updates prices)
By Medha Singh and Devik Jain
Sept 15 (Reuters) - Tech stocks pushed Wall Street's main
indexes higher on Tuesday as positive U.S. factory data fueled
optimism around an economic rebound, while investors looked for
continued support from the Federal Reserve as its two-day
meeting got underway.
The tech index .SPLRCT jumped 0.9% as it continued to
recover from a brutal sell-off earlier this month that knocked
the S&P 500 and Nasdaq off their all-time highs.
Apple Inc AAPL.O rose 0.6% ahead of a virtual product
launch, where it is expected to unveil updated watches and
iPads, but no iPhones. "The technology stocks in many ways have become the new
defensive stocks ... in a world of extremely low interest rates
these stocks have offered good returns," said Anik Sen, global
head of equities at PineBridge Investments.
"The most visible growth becomes a safe haven in many ways."
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 10:43 a.m. ET, the Dow Jones Industrial Average .DJI
was up 125.47 points, or 0.45%, at 28,118.80, the S&P 500 .SPX
was up 23.72 points, or 0.70%, at 3,407.26. The Nasdaq Composite
.IXIC was up 104.07 points, or 0.94%, at 11,160.72.
Tesla Inc TSLA.O jumped 4.2%, 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.
Carnival Corp CCL.N slid 8.8% after it warned of a
quarterly loss of $2.9 billion, as the COVID-19 pandemic brought
the cruise industry to a virtual standstill. Citigroup Inc C.N dropped 3.5% following a report that
federal regulators were preparing to reprimand the U.S. lender
for failing to improve its risk-management systems. Advancing issues outnumbered decliners for a 2.01-to-1 ratio
on the NYSE and a 1.75-to-1 ratio on the Nasdaq.
The S&P index recorded 16 new 52-week highs and no new low,
while the Nasdaq recorded 53 new highs and nine new lows.