LIVE MARKETS-US equities sit back and consider retail sales and rates

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com

U.S. EQUITIES SIT BACK AND CONSIDER RETAIL SALES, RATES

Wall Street's major indexes are barely changed on Friday as investors balanced hopes for interest rate cuts with concern about the economy after data showed that U.S. retail sales fell more than expected in January when frigid temperatures likely kept consumers from automobile show rooms.

The Commerce Department's Census Bureau said January retail sales dropped 0.9% after an upwardly revised 0.7% increase in December. Economists polled by Reuters had forecast a 0.1% dip.

Still futures had regained some lost ground fairly soon after the report.

"I think a lot of investors are digging into the details and seeing that the decline in retail sales was mostly due to the wildfires and wicked weather," said Brian Jacobsen, chief economist at Annex Wealth Management, in Brookfield Wisconsin.

"The big drop in auto sales and sporting good store sales are more noise than signal."

Also stocks are likely supported by a sharp drop in U.S. Treasury yields after the data appeared to keep the Federal Reserve on track for interest rate cuts later this year, and potentially as soon as June.

Traders reduced the probability rates would stay unchanged in June to 48.6% on Friday from 59.6% on Thursday, according to the latest data from CME Group's FedWatch tool.

Among the S&P 500's major industry indexes, the majority are higher with energy .SPNY the biggest advancer. Chevron Corp CVX.N is up and providing the benchmark index with its biggest boost. The biggest sector decliner is consumer staples .SPLRCS.

Here is your early snapshot from 10:05 a.m ET/ 1505 GMT:

(

Sinéad Carew)

FOR FRIDAY'S EARLIER LIVE MARKETS POSTS:

BREADTH CHECK: TALE OF TWO TAPES - CLICK HERE

THE TRANSATLANTIC TARIFF SPAT OF 2026? - CLICK HERE

EUROPE TO BAT AWAY U.S. TARIFFS, WEAKER CURRENCY TO HELP - CLICK HERE

IT'S HARD TO SHORT FRENCH BONDS - CLICK HERE

STOXX DOWN, LUXURY SECTOR BOOSTED BY HERMES - CLICK HERE

EUROPE BEFORE THE BELL: FUTURES MIXED, MARKETS SET FOR WEEKLY RISE - CLICK HERE

TARIFF WORRIES WANE, HERMES EARNINGS AWAIT - CLICK HERE