US STOCKS-Wall St lower on spending caution; financials weigh

* Goldman Sachs posts strong profit but shares slip

* June retail sales point to spending weakness

* For up-to-the-minute market news click [STXNEWS/US]
(Updates to mid-morning)

By Rodrigo Campos

NEW YORK, July 14 (Reuters) - U.S. stocks fell on Tuesday,
weighed by data pointing to weak consumer demand and by
profit-taking in banks after a run-up in anticipation of strong
results from Goldman Sachs Group (GS.N).

Even though June total retail sales rose 0.6 percent, more
than forecast, rising gasoline prices were a big part.
Excluding autos and gas sales, retail sales registered a fourth
consecutive monthly decline. For details see [ID:nN14252432].

A rebound in sales is considered vital for the U.S. economy
to bounce back from recession, as consumer spending accounts
for roughly two-thirds of the country's economic activity.

Stocks rallied on Monday on hopes that results from Goldman
Sachs would kick-off a stronger than expected earnings season
for the financial sector. Indeed, Goldman posted a solid
quarterly profit as its trading revenue nearly doubled.
[ID:nN14175292]

But investors booked profits as they braced for more bank
results later in the week from Bank of America Corp (BAC.N),
Citigroup Inc (C.N) and JP Morgan Chase & Co (JPM.N). Goldman
shares rose 0.3 percent to $149.82, but BofA slipped 0.9
percent and JP Morgan was off 1.2 percent.

The S&P gauge of the financial sector .GSPF fell 1.1
percent.

"The (Goldman) numbers were in line with what most of the
street was looking for, but I think there were some whisper
numbers out there that saw an even better bottom line," said
Tom Schrader, managing director of U.S. equity trading at
Stifel Nicolaus Capital Markets in Baltimore.

He added that the slight increase in retail sales was not
enough to give the market direction.

"I think we're range-bound until we get deeper into the
earnings season,", Schrader said.

The Dow Jones industrial average .DJI lost 35.83 points,
or 0.43 percent, to 8,295.85. The Standard & Poor's 500 Index
.SPX dropped 3.33 points, or 0.37 percent, to 897.72. The
Nasdaq Composite Index .IXIC fell 8.23 points, or 0.46
percent, to 1,784.98.

The S&P 500 jumped 40 percent from its 12-year low hit in
early May, but the rally wilted in June as investors sought
hard evidence that the U.S. economy, in recession since
December 2007, is recovering.

The index is up 33 percent from the March lows.

Looking ahead into earnings season, results from Intel Corp
(INTC.O), expected after the closing bell, will be closely
watched following Dell Corp's (DELL.O) forecast Monday of lower
gross margins in the quarter as demand has shifted toward
cheaper computers such as netbooks. [ID:nN13208933]

Dell shares fell 4.5 percent to $12.43, weighing down the
Nasdaq and the information technology sector of the S&P 500
.GSPT.

Gainers included shares of CSX Corp (CSX.N), which shot up
more than 6 percent a day after the U.S. railroad posted a
better-than-expected quarterly profit by slashing costs. It led
the Dow Jones Transportation Average .DJT up 1.8 percent.
[ID:nN13218559]
(Editing by Padraic Cassidy)