* Goldman Sachs profit doubles, helped by bond trading
* Coca-Cola second-quarter profit falls
* Futures: S&P up 0.2 pt, Dow up 2 pts, Nasdaq up 4 pts
By Angela Moon and Alison Griswold
NEW YORK, July 16 Wall Street was set for a flat
open on Tuesday as profit-taking after the S&P 500's eight-day
advance and investor caution about monetary policy outweighed
Goldman Sachs' doubling of its quarterly profit.
Data showed consumer prices rose more than expected in June
as gasoline prices jumped, but underlying inflation pressure
remained benign, pointing to lukewarm domestic demand.
The data, along with a housing report later in the day,
comes one day before Federal Reserve Chairman Ben Bernanke
testifies before the House Financial Services Committee.
Investors about monetary policy and the economy.
Investors will be looking for clues about when the Fed might
begin to reduce its bond-buying program, which has helped stocks
to reach record highs.
Goldman Sachs Group Inc's shares rose 0.7 percent to
$163.80 in premarket trade after the firm reported quarterly
profit that doubled as the bank made more money trading bonds
before an interest-rate spike hit markets in June.
"It's again a tribute to the nimble trading in their fixed
income group and that's what they're always known for," said
Jack De Gan, chief investment officer at Harbor Advisory Corp in
Portsmouth, New Hampshire.
"This is a much more impressive number for financial markets
and it's going to be tough for the other investment banks to
measure up to that."
On Monday, Citigroup's strong earnings helped push the S&P
500 to post its longest winning streak since mid-January.
"We've had eight straight up days in the S&P, so we could
have a down day (today) just for trading purposes," De Gan said.
Johnson & Johnson also reported higher-than-expected
second-quarter earnings as strong sales of prescription drugs
and medical devices more than offset anemic growth of its
consumer products. The stock rose 1 percent in premarket trade
In other earnings, Coca-Cola Co, a Dow component,
reported quarterly earnings fell below the company's
expectations. Coke's stock fell 3 percent to $39.80 in premarket
S&P 500 futures were down 0.8 point, and slightly
below fair value, a formula that evaluates pricing by taking
into account interest rates, dividends and time to expiration on
the contract. Dow Jones industrial average futures fell 2
points, while Nasdaq 100 futures added 2.25 points.
Online broker Charles Schwab Corp posted a 7
percent fall in quarterly profit as growth in net new assets
slowed and expenses rose.
On Monday, the Dow Jones industrial average and the S&P 500
finished at record closing highs for the third consecutive
session. The Nasdaq scored its highest close since September
European shares edged down on Tuesday, slipping back after
rallying from 2013 lows over the last two weeks, with Telecom
Italia falling due to uncertainty over the company's
plans to spin off its fixed-line network.