By Matt Andrejczak

Shares of Wal-Mart Stores Inc. (WMT) advanced early Tuesday, buoyed by its earnings report, while other retail stocks stumbled.

Overall, the S&P Retail Index dropped 2.8% to 254 as investors were in a selling mood. The Dow Jones Industrial Average fell 250 points, while the S&P 500 lost 30 points.

Women's apparel retailer Talbots (TLB) was the hardest hit. Shares plunged 25% to $2.07. Macy's Inc. (M) and Sears Holdings Corp. (SHLD) both fell 4%.

Wal-Mart rose 2.5% to $47.73. The retail giant said fourth-quarter profit fell 7.4%, hurt by higher expenses and a stronger dollar even as its low-price position has helped it win traffic and sales from budget-conscious shoppers.

-Matt Andrejczak; 415-439-6400; AskNewswires@dowjones.com