US STOCKS-Market edges higher on Wal-Mart, lower oil

(Updates to early morning)

NEW YORK, May 12 (Reuters) - U.S. stocks edged higher on Monday as the dollar rose toward a two-month peak, helping push the price of oil below record highs and as Wal-Mart (WMT.N: Quote, Profile, Research, Stock Buzz) gained after a brokerage raised its price target.

The Dow Jones industrial average .DJI was up 26.78 points, or 0.21 percent, at 12,772.66. The Standard & Poor's 500 Index .SPX was up 1.93 points, or 0.14 percent, at 1,390.21. The Nasdaq Composite Index .IXIC was up 2.98 points, or 0.12 percent, at 2,448.50. (Reporting by Jennifer Coogan; Editing by Kenneth Barry)