US STOCKS-Wall St retreats on day after highs as Coca-Cola drags
* Goldman Sachs profit doubles, helped by bond trading
* Coke profit falls on weak economy, wet weather
* Dow off 0.3 pct; S&P 500 down 0.5 pct; Nasdaq down 0.4 pct
NEW YORK, July 16 (Reuters) - U.S. stocks fell on Tuesday after disappointing sales from Coca-Cola and as investor caution took hold on the day before the Federal Reserve chairman's congressional testimony.
The market's pullback came a day after both the Dow and the S&P 500 ended at record closing highs for the third consecutive session.
Tuesday's decline put the S&P 500 on track to break an eight-day string of gains. Nine of the 10 S&P 500 industry sector indexes fell, with energy and material shares ranking among the day's worst performers. Marathon Petroleum dropped 4.1 percent to $70.13. Alcoa slid 1 percent to $8.09.
Coca-Cola Co was among the biggest drags on the Dow and weighed on the S&P 500 after the world's largest soft drinks maker reported weaker-than-expected second-quarter sales, which it blamed on economic malaise and unusually cold and wet weather. The stock fell 2.2 percent to $40.11.
"I think you're going to see a lot of companies that are coming in just barely meeting their earnings expectations and again reporting reduced revenues, and I think that's the crux of the problem with our economy," said Brian Amidei, managing director at HighTower Advisors in Palm Desert, California.
Financial stocks, which started the day as outperformers, also dropped despite strong earnings from Goldman Sachs. The S&P financial sector index fell 0.5 percent.
Goldman Sachs reported quarterly profit doubled as the bank made more money trading bonds before an interest-rate spike hit markets in June. But Goldman's stock slid 1.7 percent to $160.28 as investors fretted that the results could not be easily repeated.
The Dow Jones industrial average was down 42.07 points, or 0.27 percent, at 15,442.19. The Standard & Poor's 500 Index was down 7.90 points, or 0.47 percent, at 1,674.60. The Nasdaq Composite Index was down 13.83 points, or 0.38 percent, at 3,593.67.
Monday's modest advance took place on the lightest volume of any full trading day this year, with just 4.91 billion shares traded on U.S. exchanges. In addition to the nominal closing highs set by the Dow and the S&P 500, the Nasdaq ended at the highest level since September 2000.
Trading was expected to remain subdued ahead of Federal Reserve Chairman Ben Bernanke's testimony on Wednesday before the House Financial Services Committee. His comments will be closely analyzed for signs of when the central bank may start reducing its stimulus efforts.
Johnson & Johnson shares dipped 0.1 percent to $90.31 after the Dow component reported higher-than-expected second-quarter earnings. Strong sales of prescription drugs and medical devices more than offset anemic growth of its consumer products, Johnson & Johnson said. Earlier, the stock hit a 52-week high at $91.65.
Analysts expect S&P 500 companies' second-quarter earnings to have grown 3 percent from a year earlier, with revenue up 1.5 percent, data from Thomson Reuters showed.
U.S. homebuilder confidence rose in July to its strongest level in 7-1/2 years as tightening supply and solid demand fueled the sector's recovery even in the face of rising mortgage rates.
Shares of Tesla Motors Inc sank 14.8 percent to $108.44 after Goldman Sachs Group Inc set a new price target far below the current trading price.