Stocks fell sharply yesterday after a report showing US retail sales fell sharply at the start of the holiday shopping season, dropping by 0.6% during the month of November, according to data released by the Commerce Department.   Pullbacks in auto sales helped drive the decline — the largest monthly decrease seen all year — but even excluding autos, monthly sales declined by 0.2%, despite cooling inflation.

The number of first-time claims for unemployment benefits fell to 211,000 for the week ended December 10, according to data released by the Department of Labor.   That’s a drop of 20,000 from the previous week’s total, and the lowest level since September.

Mortgage rates edged lower this week, remaining at their lowest point since September, but the decline is likely not enough to materially revive housing confidence that’s near all time lows.  The rate on the average 30-year fixed mortgage decreased to 6.31% this week.  Rates have plunged in the last month, after signs of cooling inflation could mean the Federal Reserve will slow its aggressive interest-rate hikes.