Stocks down in early trade

NEW YORK (CNNMoney.com) -- Stocks slipped Monday morning as investors considered lower oil prices, a pair of big mergers and earnings from Dow retailers Wal-Mart Stores and Home Depot.

The Dow Jones industrial average (down 22.99 to 12,744.58, Charts) lost a few points 30 minutes into the session, after ending the previous session at a record high.

The broader S&P 500 (down 2.63 to 1,452.91, Charts) index gave back a few points after hitting a 6-1/2 year high last week.

The tech-fueled Nasdaq (down 6.82 to 2,489.49, Charts) composite lost 0.4 percent.

The major gauges gained last week, although stocks lost some steam Friday ahead of the long holiday weekend. All financial markets were closed Monday for Presidents' Day.

Tuesday started off on a negative note, despite a slide in oil prices. U.S. light crude oil for March delivery fell $1.59 to $57.80 a barrel in New York Mercantile Exchange trading.

In deal news, Sirius Satellite Radio (up $0.20 to $3.90, Charts) and XM Satellite Radio (up $1.02 to $15.00, Charts) announced a merger of equals Monday that would value the combined company at roughly $13 billion. (Full story).

Additionally, Vulcan Materials (up $0.39 to $112.20, Charts), which makes highway construction products, said Tuesday it would buy Florida Rock Industries (up $19.86 to $66.82, Charts) in a $4.6 billion cash and stock deal.

In earnings news, Home Depot (down $0.29 to $41.15, Charts) reported lower quarterly earnings that missed estimates Tuesday, sending shares lower.

Wal-Mart Stores (up $1.20 to $49.68, Charts) reported higher quarterly earnings that topped estimates on sales that missed estimates. The retailer also issued upbeat current-quarter forecasts.

Treasury prices were lower, raising the yield on the benchmark 10-year note to 4.70 percent from 4.68 percent late Friday. Treasury prices and yields move in opposite directions.

In currency trading, the dollar gained versus the euro and the yen.

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