GLOBAL MARKETS-Oil at new record, stocks slump on outlook

(Recasts with U.S. markets, adds byline; changes dateline; previous LONDON)

* Stocks fall as oil hits record

* Dollar gains, bond prices fall on U.S. retail sales

* Wal-Mart, Hewlett-Packard lead U.S. shares lower

By Herbert Lash

NEW YORK, May 13 (Reuters) - Oil prices jumped to a record near $127 a barrel and stock markets slipped on Tuesday as bank write-downs raised concerns in Europe and Wal-Mart's cautious outlook pointed to a tough U.S. economic environment.

The slide in stocks overshadowed earlier optimism after a U.S. government report showed surprising strength in April retail sales, excluding the hard-pressed autos sector.

U.S. Treasury debt prices fell because the retail sales data hinted that economic weakness in the United States might not be as pronounced as anticipated, while a rise in import prices underscored the persistent inflation threat to bonds.

The retail sales report helped lift the dollar broadly as it bolstered the view that the Federal Reserve will probably not cut interest rates again next month, which would hurt the dollar's appeal to investors.