Ruthie Bolton-Holifield and Sheryl Swoopes each scored 15 points in the 92-37 victory.
Tournament favorite China defeated Canada 77-51 in the day's other first-round game behind 29 points from 7-foot center Zheng Haixia.
The Americans, seeking their first gold since the world championships in 1990, turned the game into a rout midway through the first half when they outscored the Italians 23-0 in a six-minute stretch.
The Americans had five other players in double figures -- Shanda Berry with 13, Carla McGhee with 12, Jennifer Azzi with 11, and Lisa Leslie and Clarissa Davis with 10 each.
"We played the way we wanted to today, running, playing tough defense and using lots of people," said U.S. coach Tara Van Derveer.
"This game couldn't be called a game, only one team was scoring," said Italian coach Riccardo Sales.
The U.S. Goodwill team features seven of 12 players from its bronze-medal squad in June's world championships. The Americans are expected to face the Chinese in Sunday's final.
China won the silver medal in the world tournament.
Brazil, the world gold-medalist, is not playing in the Goodwill Games.
In other late events Wednesday, the U.S. and Russian women's volleyball teams rolled to victory in the semifinals to set up a match for the gold for Thursday. Russia beat Japan and the U.S. beat China in straight sets
In the men's one-meter springboard diving competition, China's Shang Chen took the gold medal with 397.08 points, a comfortable 40 point margin over second-place Andrei Semenyuk of Belarus. Kevin McMahon of the U.S. took the bronze.
Meanwhile, the skating saga continues. With no ice to practice on at the Yubileiny Palace, figure skaters Wednesday made do the best way they could.
Marina Eltsova and Andrei Bushkov of Russia, the 1993 European champions, were shut out of practice when there was not enough ice at the main rink. So, rather than waste time, they went through their movements in the parking lot.
It was an strange sight. Dressed in shorts and T-shirts and running shoes on a hot sunny day in St. Petersburg, the two went through double twists and double axels as if they were gliding on ice.
Then they hopped into their cars -- both live and train in St. Petersburg -- and went to the SKA skating rink, where there was ice, and went through the same routine with skates.
(AP,Reuters)
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