U.S. stock markets were flat Wednesday on stronger-than-expected retail sales.

The Commerce Department on Wednesday reported that retail sales went up 1 percent in November after declining a revised 0.1 percent in October.

However, analysts said the latest report would diminish chances of interest cut as the Federal Reserve is putting its primary concern on inflation.

The Fed on Tuesday kept the nation's benchmark interest rate unchanged at 5.25 percent.

By 14:15, the Dow Jones industrial average was up 4.32, or 0.05 percent, at 12,319.90. The Standard & Poor's 500 index increased 1. 25, or 0.09 percent, to 1,412.81 while the Nasdaq composite index fell 0.71, or 0.03 percent, to 2,430.89.