US STOCKS-Market flat as Goldman lingers despite Citi profit

* Citi shares jump 7 pct after results, lift banking sector

* Shanghai shares tumble as China moves to curb mortgages

* Dow, S&P 500 flat; Nasdaq off 0.2 pct

* For up-to-the-minute market news see [STXNEWS/US] (Updates to midmorning)

By Rodrigo Campos

NEW YORK, April 19 (Reuters) - U.S. stocks were little changed on Monday as lingering concerns over fraud charges against Goldman Sachs offset upbeat economic data and better-than-expected results from Citigroup Inc.

Citi (C.N) jumped 7 percent to $4.88 after the bank posted a quarterly profit versus a year-ago loss and turned in its best results since 2007. helping bank stocks recover from Friday's sell-off after U.S. regulators charged Goldman Sachs Group Inc (GS.N) with fraud. For details see [ID:nN19163699] [ID:nN16131161].

Goldman dropped nearly 1 percent at $159.44 after falling nearly 13 percent on Friday, while the KBW capital markets index .KSX, which was off 3.4 percent Friday, added 0.7 percent.

Meanwhile, a gauge of U.S. economic prospects rose more strongly than expected to a record high in March, pointing to a steady recovery. [ID:nN19175994]

"This morning's action is tied directly to decent earnings results, the (leading indicators) and the fact that we had a pretty significant sell-off on Friday," said Joseph Battipaglia, market strategist at Stifel Nicolaus in Yardley, Pennsylvania.

He said that after the recent run-up, even with strong earnings, the market would struggle to rise above 18-month highs reached last week.

The Dow Jones industrial average .DJI gained 3.93 points, or 0.04 percent, to 11,022.59. The Standard & Poor's 500 Index .SPX dropped 0.01 point, flat percentage wise, at 1,192.12. The Nasdaq Composite Index .IXIC dropped 4.25 points, or 0.17 percent, to 2,477.01.

Weighing on sentiment, the Chinese State Council told banks they would be expected to raise mortgage rates and down payment requirements in an attempt to cool down real estate speculation. The move rattled local markets, with Shanghai shares .SSEC off nearly 5 percent, while Hong Kong's Hang Seng .HSI shed 2.1 percent. [ID:nTOE63G016]

International Business Machines Corp (IBM.N), Eli Lilly and Co (LLY.N) and Zions Bancorp (ZION.O) are due to report results later Monday. (Editing by Jeffrey Benkoe)