"Wall Street pulled back Monday after Microsoft decided to withdraw its bid for Yahoo and oil prices rose to a new record, near $120 a barrel.</br></br>The Dow Jones industrial average fell 88.66, or 0.68 percent, to 12,969.54. Broader stock indicators also declined. The Standard & Poor's 500-stock index fell 6.41, or 0.45 percent, to 1407.49, while the Nasdaq composite index fell 12.87, or 0.52 percent, to 2464.12.</br></br>Microsoft had offered $47.5 billion to buy Yahoo but scrapped the bid late Saturday after the software maker and the Internet portal could not agree on a sale price. The failed deal came as a disappointment to Wall Street.</br></br>The jump in oil prices raised concern that inflation could force consumers, who account for more than two-thirds of the economy, to cut their spending on discretionary items. Crude oil futures surged to a new trading high of $120.21 a barrel on the New York Mercantile Exchange before pulling back to settle at a record $119.97, up $3.65. The jump came after worries over supply disruptions in Nigeria, Iran and Iraq.</br></br>""Energy is a very important piece,"" said Russell Croft, portfolio manager at Croft Leominster Investment Management in Baltimore, referring to the mood of both investors and consumers. ""It's the price at the pump; it's what people read about."""