New York ? Wall Street opened 2005 with a loss Monday as investors shored up portfolios and abandoned risky positions taken during the postelection rally.

The drop came despite falling oil prices and a better-than-expected sales forecast from Wal-Mart Stores Inc.

While the stock market typically opens the new year with a buying spree, investors were picky, favoring large-caps with solid balance sheets over small-caps and more speculative bets.

“Usually, you see a lot more speculative trading to start the new year, with all the new money coming in,” said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. “But here, you’re seeing a big move to quality, large-cap stocks. I think there’s been a realization that these stocks are attractively priced.”

As investors sold off stocks, they overlooked a sharp drop in crude futures, triggered by mild weather in the Northeast and reports of increased crude production. The drop could be good news for consumer spending, which accounts for two-thirds of the nation’s economy. A barrel of light crude was quoted at $42.13, down $1.32, on the New York Mercantile Exchange.

The Dow Jones industrial average fell 53.58, or 0.5 percent, to 10,729.43. Broader stock indicators fell sharply.

A mix of economic news further sapped any momentum stocks may have enjoyed. Construction spending took an unexpected hit in November, falling 0.4 percent for the month, the Commerce Department said. Investors had been expecting a rise of 0.4 percent after October’s 0.3 percent gain.

While the majority of retailers were expected to report their holiday sales results Thursday, Wal-Mart gave Wall Street a preview of its sales results, which were better than expected and sparked hope that other retailers would fare similarly.

Sales at Wal-Mart stores open at least a year rose 3 percent for December, prompted by strong after-Christmas sales. The company’s previous forecasts were in the middle of a 1 percent to 3 percent range. Wal-Mart gained 53 cents to $53.35.