U.S. stocks fell for the first day in three after Wal-Mart Stores said November sales will trail its most optimistic forecast, sparking concern that consumer spending may slow.

The Dow Jones industrial average fell 92.52, or 1.1 percent, to 8486.57, and the Nasdaq Stock Market composite index dropped 17.45, or 1.2 percent, to 1393.69. The Standard & Poor's 500-stock index declined 9.47, or 1 percent, to 900.36.

Wal-Mart fell $1.81, to $53.68. Rival Target declined $1.51, to $31.38, and Kohl's fell $2.33, to $64.57.

Fannie Mae slid $1.55, to $63. It dropped for a second day after saying Friday that its portfolio of mortgage loans, which accounts for two-thirds of its profits, declined as backlogs at lenders restricted the company's ability to purchase new loans.

UnumProvident dropped $1.24, to $17.31. Former employees and policyholders told CBS-TV's "60 Minutes" that executives of the insurer ordered employees to meet cost-savings targets by refusing to pay claims regardless of their merit. The report was broadcast two days after a federal judge upheld a $7.6 million award against the company and issued an injunction forcing it to stop setting targets for claim denials.

Citigroup fell $1.08, to $35.82. The largest financial services company said a $1 million donation to the 92nd Street YM-YWHA in 1999 was linked to its former analyst Jack Grubman's efforts to get his children admitted to the Y's nursery school.

AT&T lost 35 cents, to $13.51. Lehman analyst Blake Bath expects the largest U.S. long-distance phone company to shut down or sell its consumer business by the end of 2003, he wrote in a note to clients. Blake cut his rating to "underweight" from "equal weight."

After exchanges closed, AT&T completed the $55 billion sale of its cable-television unit to Comcast and carried out a reverse stock split. The latter will swap investors one share for every five they now own.

Merck rose $1.19, to $56.56. The second-largest U.S. drugmaker said its drug Zetia boosted the efficacy of cholesterol treatments using drugs known as statins, according to a study published in the American Journal of Cardiology.

Bristol-Myers Squibb gained 49 cents, to $24.54. Abilify may have more than $700 million in yearly sales, analysts have said. It's among the most important new products for Bristol-Myers, which has had a series of regulatory and development setbacks with heart and cancer medicines.

Other Indicators

* The New York Stock Exchange composite index fell 4.06, to 478.28; the American Stock Exchange index rose 2.55, to 820.95; and the Russell 2000 index of smaller-company stocks fell 3.34, to 382.58.

* Declining issues outnumbered advancing ones by 4 to 3 on the NYSE, where trading volume fell to 1.29 billion shares, from 1.42 billion on Friday. On the Nasdaq, decliners outnumbered advancers by 11 to 8 and volume totaled 1.64 billion, down slightly from Friday.

* The price of the Treasury's 10-year note rose $6.25 per $1,000 invested, and its yield fell to 3.99 percent, from 4.03 percent on Friday.

* The dollar rose against the Japanese yen and the euro. In late New York trading, a dollar bought 121.14 yen, up from 120.42 late Friday, and a euro bought $1.0083, down from $1.0087.

* Light, sweet crude oil for December delivery settled at $26.71 a barrel, up $1.20, on the New York Mercantile Exchange.

* Gold for current delivery fell to $319.20 a troy ounce, from $320.70 on Friday, on the New York Mercantile Exchange's Commodity Exchange.