US STOCKS-Wall St flat as euro-zone worries offsets Bernanke

                                
   * Bernanke says U.S. should avoid double-dip recession
                                
 * Goldman subpoenaed by crisis commission
                                
 * Dow off 0.1 pct, S&P off 0.2 pct, Nasdaq off 0.8 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Updates to midmorning)
                                
 By Chuck Mikolajczak
                                
 NEW YORK, June 8 (Reuters) - Wall Street was flat in choppy
trade on Tuesday after relinquishing early gains, as euro-zone
concerns offset reassuring comments from Federal Reserve
Chairman Ben Bernanke on the state of the U.S. economy.
                                
 Bernanke said the U.S. economy seemed to have enough
momentum to avoid a "double-dip" recession, while European
leaders were committed to ensuring the survival of the euro and
had enough money to meet obligations of heavily indebted member
nations. For details, see [ID:nLDE65705B]
                                
 Financial markets remained anxious about debt levels in
several euro zone countries, as Portugal, Italy and Spain
prepared to sell new bonds this week. It will be the first sale
by Spain since a credit ratings downgrade.
                                
 "What is happening here is that the worries in Europe tend
to be top of mind for traders and investors. It's the first
thing they think about and not the second or third thing, so
there is nothing positive that can balance it out as this
point," said Richard Sparks, senior equities analyst,
Schaeffer's Investment Research in Cincinnati, Ohio.
                                
 "Until we have some clarity there and there is some better
news that can overcome the worries of the unknown, it will be
really tough for traders to have the confidence to step in
convincingly and buy this market."
                                
 The Dow Jones industrial average <.DJI> dropped 10.20
points, or 0.10 percent, to 9,806.29. The Standard & Poor's 500
Index <.SPX> fell 1.80 points, or 0.17 percent, to 1,048.67.
The Nasdaq Composite Index <.IXIC> slipped 16.69 points, or
0.77 percent, to 2,157.21.
                                
 The euro <EUR=>, used by investors in recent weeks as a
barometer for euro-zone stability, edged up 0.2 percent, a day
after the currency hit its lowest level against the dollar
since early 2006.
                                
 The increased volatility on Wall Street in recent weeks has
made investors more sensitive, backing away at the first hint
of selling pressure. [ID:nN08196317]
                                
 Large-cap technology companies dragged the Nasdaq lower
after Bank of America-Merrill Lynch cut price targets on seven
Internet stocks, citing uncertainty over earnings due to an
appreciating dollar since April. Amazon.com Inc <AMZN.O> was
off 2.8 percent to $118.57. [ID:nSGE6570FA]
                                
 Goldman Sachs Group Inc <GS.N> shed 1.5 percent to $136.60
after it was subpoenaed by the commission probing the financial
crisis. [ID:nN07197430]
                                
 Separately, Goldman lowered its view on the deepwater
drilling sector to "neutral" from "attractive" on expectations
the moratorium on deepwater drilling would be extended and
bring pressure on day rates and delayed price hikes.
[ID:nSGE6570DJ]
                                
 U.S.-listed shares of Transocean Ltd <RIG.N> slid 9 percent
to $44.72, while Diamond Offshore Drilling Inc <DO.N> dropped 5
percent to $56.20.
                                
 McDonald's Corp <MCD.N> dipped 0.8 percent to $66.25 after
the fast-food chain reported a stronger-than-expected  rise in
worldwide same-store sales in May. [ID:nN08226441]
  (Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)