US STOCKS-Market dips as Wal-Mart gloom offsets Obama

* Dim Wal-Mart profit outlook fuels spending worry

* Obama stimulus plan includes extended jobless aid

* Dow down 1 pct; S&P off 0.6 pct; Nasdaq down 0.9 pct

* For up-to-the-minute market news, click [STXNEWS/US] (Updates to midday)

By Ellis Mnyandu

NEW YORK, Jan 8 (Reuters) - U.S. stocks fell on Thursday as Wal-Mart's disappointing December sales and dim profit outlook fueled concerns the recession may be deepening.

Trade was choppy, however, as investors bet that U.S. President-elect Barack Obama will push for a massive economic stimulus plan, though some unease remained as details of his plan remained sketchy.

Shares of Wal-Mart Stores Inc (WMT.N) , the world's biggest retailer, slid more than 7 percent.

"I think we're torn between optimism between the new administration and stimulus plans and the awful economic outlook," said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago. "Expectations are almost for the worst at this point in time. Maybe we come out not as bad."