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Rising prices and the threat of inflation dampened the major markets this session, despite robust merger and acquisitions activity. Uncertainty in the pharmaceutical sector further pressured Wall Street. A Commerce Department report on consumer income and spending showed that spending was flat in the first month of the year, and though personal income dropped less than expected in January, core consumer prices rose 0.3%, the fastest rate in three years.
"There's a lot that lies ahead. As a result, a lot of investors are just sort of watching to see how the economic numbers unfold and see what Alan Greenspan says," said Hugh Johnson, chairman and chief investment ...