* Goldman Sachs posts strong profit, shares edge up

* Corporate profits underpin the market

* Intel jumps more than 7 pct after the bell

* June retail sales signal weak consumer demand

* Dow up 0.3 pct, S&P 500 up 0.5 pct, Nasdaq up 0.4 pct

*For up-to-the-minute market news click [STXNEWS/US]
(Adds details on Intel after the bell and volume)

By Leah Schnurr

NEW YORK, July 14 (Reuters) - U.S. stocks managed modest
gains on Tuesday as better-than-expected corporate profits
overshadowed concerns about weak consumer demand.

Positive surprises on the earnings front could boost
markets again on Wednesday as chip maker Intel (INTC.O: Quote, Profile, Research)
reported results after the bell that surpassed expectations,
driving stock index futures sharply higher.

Intel also gave a forecast for current-quarter revenue
that beat analysts' estimates. Its stock surged 7.4 percent to
$18.08 in extended trade. For details, see [ID:nN14260734]

Analysts said the bulk of Tuesday's news during the
regular session, including a jump in profit from Goldman Sachs
(GS.N: Quote, Profile, Research), was already accounted for on Monday, when major stock
indexes climbed more than 2 percent in anticipation of strong
bank results.

Competing positive and negative earnings reports tempered
each other, keeping the markets range-bound.

Gains were muted by lackluster retail sales data and
comments from Dell (DELL.O: Quote, Profile, Research) that second-quarter margins would
be lower as demand has shifted toward cheaper computers, such
as netbooks.

This was offset by encouraging comments from railroad
company CSX Corp's (CSX.N: Quote, Profile, Research) chief executive and results from
Johnson & Johnson (JNJ.N: Quote, Profile, Research) that surpassed expectations.

"The sellers had a chance to run with it, but again we
found sideline cash ready to come in," said Scott Marcouiller,
senior equity market strategist at Wells Fargo Advisors in St.
Louis.

"The bottom line is, we think we're still going to be in
this trading range for a little while longer."

The Dow Jones industrial average .DJI added 27.81
points, or 0.33 percent, to 8,359.49. The Standard & Poor's
500 Index .SPX gained 4.79 points, or 0.53 percent, to
905.84. The Nasdaq Composite Index .IXIC rose 6.52 points,
or 0.36 percent, to 1,799.73.

Data showed June retail sales increased 0.6 percent, which
was more than forecast, but a big part of that gain was due to
rising gasoline prices. Excluding autos and gas sales, retail
sales registered a fourth consecutive monthly decline.
[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.

GOLDMAN GAINS, BUT DELL DIVES

Goldman Sachs Group's surge in quarterly profit handily
beat expectations, but its stock gained just 0.2 percent to
$149.66 after Monday's jump of 5 percent. [ID:nN14175292]

Johnson & Johnson's profit also surpassed forecasts and
the Dow component rose 0.9 percent to $58.23. [ID:nN14253944]

The current earnings season is under particular scrutiny
as investors look for signs of economic improvement.

Indeed, comments from the chief executive of CSX that the
worst of the recession seems to be over helped bolster stocks.
[ID:nN14255730]

CSX, which reported better-than-expected results after
Monday's closing bell, saw its shares climb 7 percent to
$34.80 on the New York Stock Exchange. The Dow Jones
Transportation Average .DJT gained 1.3 percent.

But personal computer maker Dell limited gains after its
lower margin forecast, pushing its stock down 8.1 percent to
$11.97 on Nasdaq. [ID:nN13208933]

Volume was light on the New York Stock Exchange, with only
about 979 million shares changing hands, sharply below last
year's estimated daily average of 1.49 billion, while on the
Nasdaq, about 1.91 billion shares traded, below last year's
daily average of 2.28 billion.

Advancing stocks outnumbered declining ones on the NYSE by
a ratio of about 7 to 3, while on the Nasdaq, about 15 stocks
rose for every 11 that fell.
(Editing by Jan Paschal)