* August retail sales rise more than expected
* Best Buy surges after upbeat forecast
* Futures: S&P off 2 pts, Dow off 11 pts, Nasdaq up 0.5 pt (Adds details)
By Leah Schnurr
NEW YORK, Sept 14 (Reuters) - Wall Street was set for a flat open on Tuesday, with investors looking to lock in profits after recent gains, but better-than-expected retail sales and a raised outlook from electronics retailer Best Buy could limit declines.
Best Buy Co Inc surged 8.7 percent to $37.68 after it reported higher quarterly profit and raised its full-year outlook. Futures trimmed earlier losses after the report.
"Best Buy is interesting because they beat on the bottom line but missed on the top. I think that's endemic of what's going on in the economy. Profits are okay, but revenue remains a concern," said James Dailey, portfolio manager of Team Asset Strategy Fund in Harrisburg, Pennsylvania.
Also supporting markets was data that showed retail sales increased more than expected in August, racking up their largest gain in five months. The data briefly pushed S&P 500 futures into positive territory.
Investors were looking for further proof the economy can avoid falling back into recession.
"Sentiment had gotten so negative that a more mediocre number like this isn't terrible," said Dailey.
But a sustainable gain in the broader market may be stymied as investors look to take some cash off the table the day after Wall Street advanced to its highest level in five weeks.
S&P 500 futures dipped 2 points and were 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 were off 11 points, and Nasdaq 100 futures added 0.5 point.
Technical factors could also be an influence after the S&P 500 closed Monday above its 200-day moving average for the first time since early August -- a potentially bullish sign. After being range-bound through the summer, the benchmark has drifted to the top of that range through September.
Investors are keyed on the 1,130 level, which has not been hit since May. Investors hope if the level is surpassed, it could signal more gains on the horizon. Even so, in August, the S&P closed above its 200-day moving average seven days in a row before falling nearly 8 percent over the next 18 days.
Also on the economic calendar is July business inventories data, due at 10 a.m. EDT (1400 GMT). Economists expect a gain of 0.5 percent, according to a Reuters poll.
Indexes rose for a fourth day in a row on Monday, making for an eighth day of gains out of the last nine for the S&P and Dow. Nonetheless, volume was light, indicating investors want to see more conviction in any further move up.
BP Plc and its partners in the blown-out Gulf of Mexico well said thousands of fishermen, seafood processors, restaurants, hotel owners and others may not yet have the right to sue over the spill, according to court papers.
The companies said the majority of plaintiffs who brought about 400 lawsuits must first take their claims to a $20 billion fund established by BP. The oil giant's U.S.-listed shares added 0.3 percent to $38.47.