US STOCKS-Wall Street higher but Apple loses ground after event

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* Losses in Citi, JPM shares pressure banks index
* Apple shares flat after event
* Indexes up: Dow 0.3%, S&P 0.7%, Nasdaq 1.4%

(Updates to late afternoon)
By Caroline Valetkevitch
Sept 15 (Reuters) - U.S. stocks rose on Tuesday as investors
hoped the Federal Reserve would stick with its supportive policy
stance as the central bank's two-day meeting got underway.
The market's rise was limited as Apple Inc's AAPL.O shares
lost early gains following its rollout of a new virtual fitness
service and a bundle of all its subscriptions, Apple One.
The S&P 500 technology index .SPLRCT was still up 1% and
the Nasdaq outperformed the other two major indexes, extending
its recovery from a brutal sell-off earlier this month that had
halted a Wall Street rally.
"The pullback we had is now behind us" probably, said Peter
Cardillo, chief market economist at Spartan Capital Securities
in New York.
"While the economy is slowing, the upcoming macro news
should be friendly, which should indicate the Fed will have no
change in terms of policy," he said.
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.
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. The Dow Jones Industrial Average .DJI rose 82.51 points,
or 0.29%, to 28,075.84, the S&P 500 .SPX gained 24.6 points,
or 0.73%, to 3,408.14 and the Nasdaq Composite .IXIC added
153.85 points, or 1.39%, to 11,210.50.
Earlier in the day data showed China's industrial output
accelerated the most in eight months in August. Citigroup Inc C.N dropped 4.3% 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 2.4% as it lowered its
full-year net interest income forecast. Advancing issues outnumbered declining ones on the NYSE by a
1.92-to-1 ratio; on Nasdaq, a 1.72-to-1 ratio favored advancers.
The S&P 500 posted 21 new 52-week highs and no new lows; the
Nasdaq Composite recorded 63 new highs and 15 new lows.