US STOCKS-Wall St falls as stronger dollar weighs
* U.S. dollar weighs on commodities-related shares
* Wal-Mart forecast sparks worry about consumer spending
* Intel, Advanced Micro Devices up after settling dispute
* For up-to-the-minute market news, click [STXNEWS/US] (Updates to afternoon, changes byline)
NEW YORK, Nov 12 (Reuters) - U.S. stocks fell on Thursday as a stronger dollar weighed on commodity-linked shares and a guarded outlook from Wal-Mart Stores Inc (WMT.N) led to worries about the strength of consumer spending.
The market declined from 13-month highs hit on Wednesday and threatened to snap a six-day streak of higher closes by the Dow industrials.
The dollar rose against other major currencies .DXY, bolstered by a report showing initial U.S. weekly jobless claims had fallen to their lowest level since January.
The greenback's rise weighed on dollar-denominated commodities, including crude oil futures, which fell 2.7 percent. The S&P integrated oil and gas index .GSPOILI fell 1.4 percent, with shares of Chevron Corp (CVX.N), Hess Corp (HES.N) and Occidental Petroleum Corp (OXY.N) down more than 1 percent.
"As the S&P 500 has gone above 1,100, it has had a hard time holding on to gains," said Quincy Krosby, market strategist at Prudential Financial in Shelton, Connecticut.
"In order to get to the next level up, it does need a strong catalyst, and most of the time the stronger dollar has been a negative for the market."
The Dow Jones industrial average .DJI lost 25 points, or 0.58 percent, to 10,232.01. The Standard & Poor's 500 Index .SPX dropped 7.35 points, or 0.67 percent, to 1,091.16. The Nasdaq Composite Index .IXIC fell 9.90 points, or 0.46 percent, to 2,157.00.
Wal-Mart, the world's largest retailer, reported a higher quarterly profit and its shares rose 0.6 percent to $53.30, but it forecast earnings for the key holiday quarter that could miss Wall Street's consensus estimate. For details see [ID:nN12404234].
Concern about consumer spending weighed on the S&P retail index .RLX, which fell 0.4 percent.
Advance Micro Systems Inc (AMD.N) rose 22.6 percent to $6.52 and was the most traded stock on the New York Stock Exchange after it agreed with fellow chipmaker Intel Corp (INTC.O) to settle all outstanding legal disputes. Intel will pay AMD $1.25 billion as part of the settlement. [ID:nN12410647].
Network equipment maker 3Com Corp (COMS.O) gained 31.6 percent to $7.49 after Hewlett-Packard Co (HPQ.N) said on Wednesday it has agreed to buy the company for $2.7 billion. [ID:nN11380741]. Hewlett-Packard shed 0.6 percent to $49.72.
Shares of Brocade Communications Systems Inc (BRCD.O) fell 13.3 percent to $8.02 after a brokerage questioned the company's ability to gain market share after news of the deal between Hewlett-Packard and 3Com. (Editing by Kenneth Barry)
