Dow Ends Down 9 on Mixed Economic Data

The economic data follow the strongest quarter for the stock market in about a decade. Investors are eager to find out whether the Federal Reserve still sees inflation as a sizable threat. Stocks have risen since the central bank interrupted a two-year string of 17 consecutive rate hikes and last month left rates unchanged for a second straight time.

In corporate news, casino operator Harrah's Entertainment Inc. received a $15.05 billion offer for the company from private equity firms Apollo Management and Texas Pacific Group. The private-equity firms will pay $81 per share, a 22 percent premium to Harrah's closing stock price on Friday on the New York Stock Exchange. Harrah's was up $9.25, or 13.92 percent, at $75.68.

Biopharmaceutical concern Myogen Inc. jumped $16.36, or 47 percent, to $51.44 after drug research company Gilead Sciences Inc. said it would acquire the company for $2.5 billion, a 50 percent premium. As is often the case with the company doing the acquiring in a merger deal, Gilead was down, falling $4.49, or 6.53 percent, to $64.28.

Apple Computer Inc. fell $2.12, or 2.75 percent, to $74.86 after Citigroup cut its rating on the computer maker to "Hold" from "Buy," noting that Apple is unlikely to introduce a video iPod with a larger screen and other enhancements before the holidays. The iPods announced last month are likely to comprise the company's holiday offerings, the analyst contends.

Wal-Mart Stores Inc. fell 88 cents to $48.44, after it reported that September sales at stores open at least a year rose 1.8 percent. The world's largest retailer had expected such sales, a closely tracked measure of retail performance, would increase 1 percent to 3 percent.

I-Flow Corp. rose $1.22, or 10.15 percent, to $13.24 after announcing it agreed to sell its InfuSystem Inc. subsidiary to HAPC Inc. for $140 million in cash and a secured note. InfuSystem rents infusion pumps and related products to medical oncologists. The cash portion of the purchase price will likely total $65 million to $85 million, the company said.

Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.61 percent from 4.63 percent late Friday. The dollar was mixed against other major currencies, while gold prices fell.

Declining issues outnumbered advancers by roughly 3 to 2 on the New York Stock Exchange, where consolidated volume came to 2.15 billion shares, compared with 2.28 billion at the same point Friday. Volume was light Monday as a result of the holiday.

The Russell 2000 index of smaller companies was down 6.78, or 0.93 percent, at 718.81.

Overseas, Japan's Nikkei stock average closed up 0.79 percent. Britain's FTSE 100 closed down 0.05 percent, Germany's DAX index was down 0.08 percent, and France's CAC-40 was down 0.13 percent.