U.S. Stocks Fall on Dollar Slide, Oil's Gain; Wal-Mart Declines (Michael Tsang and Nick Baker)

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By Michael Tsang and Nick Baker

Nov. 27 (Bloomberg) -- U.S. stocks fell, sending the Standard & Poor's 500 Index toward its biggest retreat in more than four months, after a decline in the dollar for a fifth day underscored concern that economic growth is faltering.

Wal-Mart Stores Inc., the biggest retailer, led merchants lower after saying monthly sales fell for the first time in 10 years. Nokia Oyj, the largest mobile-phone maker, slipped as a lower U.S. currency cut the value of dollar-denominated sales.

``The weakening dollar can show a potential lack of confidence among foreign investors in the U.S. economy,'' said Chuck Carlson, who oversees $110 million at Horizon Investment Services in Hammond, Indiana. Regarding Wal-Mart, Carlson said: ``If you're a big bellwether having some problems, that causes people to reconsider how strong the consumer is.''

An advance in oil prices also deepened concern that higher energy costs will leave consumers with less to spend as the holiday shopping season gets under way.

The Standard & Poor's 500 Index lost 17.50, or 1.3 percent, to 1383.45 at 2:16 p.m. in New York. The Dow Jones Industrial Average slid 150.37, or 1.2 percent, to 12,129.80. The Nasdaq Composite Index fell 50.23, or 2 percent, to 2410.03.

Both the S&P 500 and the Dow average are heading toward their biggest declines since July 13, while the Nasdaq is poised for its largest drop since June 12.