US STOCKS-Wall St falls as stronger dollar weighs

* Stronger U.S. dollar weighs on commodity prices

* Intel, Advanced Micro Devices up after settling dispute

* Wal-Mart forecasts Q4 earnings could miss estimates

* Indexes down: Dow 0.5 pct, S&P 500 0.6 pct, Nasdaq 0.3

* For up-to-the-minute market news, click [STXNEWS/US]

(Updates to midday, changes byline)

By Edward Krudy

NEW YORK, Nov 12 (Reuters) - U.S. stocks fell on Thursday as a stronger dollar weighed on commodity shares and a guarded outlook from Wal-Mart Stores Inc (WMT.N) led to worries about the level of consumer spending.

The drop in shares threatened to snap a six-day winning streak for the Dow industrials as stocks slipped from 13-month highs made in the last session.

Wal-Mart, the world's largest retailer, reported a higher quarterly profit but forecast earnings for the current period that could miss Wall Street's consensus estimate. The stock gained 1.1 percent to $53.55. [ID:nN12404234]

The U.S. dollar headed higher against major currencies, bolstered by a report showing initial U.S. weekly jobless claims had fallen to their lowest level since January.

The currency's rise weighed on dollar-denominated commodity prices, including crude oil futures, which fell 3 percent to below $77 a barrel.

The dollar has traded inversely to stocks for most of the year, moving lower as the S&P 500 has gained more than 60 percent since early March.

"In the past two days we are seeing a modest rebound off the (dollar's) lows," said Steve Goldman, market strategist, Weeden & Co in Greenwich, Connecticut. "It's a catalyst or an excuse to take some profits."

The Dow Jones industrial average .DJI fell 49.88 points, or 0.48 percent, at 10,241.38. The Standard & Poor's 500 Index .SPX lost 6.29 points, or 0.57 percent, at 1,092.22. The Nasdaq Composite Index .IXIC was down 7.00 points, or 0.32 percent, at 2,159.90.