Wal-Mart Stores disappointing sales forecast sent its

stocks mostly lower on Monday with lurking investors fears

on rising oil prices, which dropped some what from last

week''s highs, would curb consumer spending and hurt

companies'' third-quarter earnings.

Wal-Mart''s warning about lower-than-expected August sales

squelched the market''s enthusiasm over falling oil prices.

With its wider reach among consumers, Wal-Mart is

considered as a barometer of an already struggling retail

sector, and even the economy as a whole.

"I think you can make the case that Wal-Mart is related to

oil, since oil prices have acted as a kind of tax on

consumers that has restricted their spending," said Joseph

Keating, Chief Investment Officer at AmSouth Asset

Management in Birmingham.

Lower back-to-schools sales and lost business due to

Hurricane Charley in Florida were the reasons cited for

Wal-Mart’s lowered August sales forecasts. Wal-Mart fell

85 cents, to $53.80.

Meanwhile, Kmart Holding completed the sale of 18 stores

to Home Depot for $271 million, allowing the discount

retailer to continue consolidating its stores while giving

the home improvement retailer room to grow. Kmart slipped

10 cents, to $76.45; Home Depot fell 36 cents, to $36.00.