US STOCKS-Wall St flat as new Greece concerns arise

* Greece to vote again after government talks fail
* Banking stocks up slightly after declines
* Home Depot falls after results, Groupon advances
* Investors watching 1,340 level on S&P for support
* Dow, S&P both flat, Nasdaq up 0.1 pct

By Ryan Vlastelica
NEW YORK, May 15 (Reuters) - U.S. stocks were flat on
Tuesday as news that Greece would hold a new election gave
investors another reason to be cautious despite several days of
equity losses.
Futures had indicated strong gains after the S&P fell for
four of the past five sessions, with a stronger-than-expected
read on New York manufacturing adding to the positive sentiment.
But that proved short-lived as issues in Europe again came to
the forefront.
Nine days following an inconclusive vote that failed to
result in the formation of a government, Greece said it will
hold a new election, prolonging a political crisis that pushes
the country closer to bankruptcy and exit from the euro.

"Europe is in pretty deep trouble, and there is no end in
sight at this moment," said Weyman Gong, chief investment
strategist at Signature in Norfolk, Virginia. "The unity of the
currency is very uncertain at this moment, and unless Germany is
willing to shell out a lot of money to stabilize the system,
things may eventually have to break up."
European shares fell 0.6 percent.
The Dow Jones industrial average was up 4.39 points,
or 0.03 percent, at 12,699.74. The Standard & Poor's 500 Index
was up 0.27 points, or 0.02 percent, at 1,338.62. The
Nasdaq Composite Index was up 3.00 points, or 0.10
percent, at 2,905.58.
The S&P 500 index closed at its lowest level since February
on Monday. Concerns about the situation in Europe have been a
primary mover for the weakness, which have taken the benchmark
index down more than 4 percent so far this month.
Investors are closely watching 1,340 on the S&P, a key
support level. A prolonged period under 1,340 could trigger more
selling.
Banking stocks, which have suffered in the recent declines,
were the day's top percentage gainers, up 0.3 percent.
Bank of America Corp rose 1.2 percent to $7.44.
JPMorgan Chase & Co rose 1.6 percent to $36.37. JPMorgan
shares have slumped over the past week after suffering
multi-billion trading losses that have resulted in the exit of a
top executive.
Retail sales rose 0.1 percent in April, slightly under
expectations, while consumer prices were flat in the month. A
report on manufacturing in New York state was sharply higher
than expected.
Home Depot Inc fell 2.5 percent to $48.59 before
reporting sales that missed expectations. Loews Companies Inc
fell 1.7 percent to $29.03.
Groupon Inc late Monday reported its first
quarterly profit, sending shares 16 percent higher to $13.57.

Facebook Inc has increased the price range in Silicon
Valley's biggest-ever initial public offering to raise more than
$12 billion, giving the biggest social network a potential
market capitalization exceeding $100 billion.
Avon Products Inc slumped 11 percent to $18.37 in
premarket trading after Coty Inc withdrew its $10.7
billion takeover bid for the company, saying it had missed a
deadline to start discussing a deal.