GLOBAL MARKETS-Stocks fall on inflation fear, oil at new high

(Adds close of U.S. markets)

* Stocks fall as oil hits record $126.98 barrel

* Dollar gains, bond prices fall on U.S. retail sales

* Federal Reserve comments on inflation damp sentiment

By Herbert Lash

NEW YORK, May 13 (Reuters) - U.S. stocks mostly slipped on Tuesday as Wal-Mart's cautious outlook and a renewed focus on inflation sparked by a record oil price near $127 a barrel and comments by Federal Reserve officials dampened sentiment.

Fed Chairman Ben Bernanke said the credit crisis was not over, and several of his colleagues expressed a growing concern about inflation that may signal a pause in interest rate cuts.

The comments by several regional Fed presidents accelerated a sell-off of U.S. government debt that was driven earlier in the day by a stronger-than-expected U.S. retail sales report.

The retail sales report helped lift the dollar broadly as it bolstered the view that the Fed is unlikely to cut interest rates when policy-makers meet next month, a move that would help strengthen the dollar.