Stocks set for a flat open

NEW YORK (CNNMoney.com) -- U.S. stocks were poised for a flat open Thursday, as investors digest a report on unemployment claims that showed a rosier picture than anticipated. Investors are still awaiting economic reports on manufacturing and the housing market.

Dow Jones industrial average (INDU) and S&P 500 (SPX) futures were barely below the breakeven line, and Nasdaq (COMP) futures were up slightly ahead of the opening bell. Futures measure current index values against perceived future performance.

Futures pared their losses and the Nasdaq turned positive, after the Department of Labor reported the number of initial unemployment claims fell to 388,000 in the week ending Dec. 25 -- down 34,000 from an upwardly revised 422,000 claims filed the week before. Economists surveyed by Briefing.com were expecting 416,000 new claims. This week's number is the lowest level of initial jobless claims since July 2008.

Trading volumes are expected to remain muted through the year-end holiday season. However, stocks are still likely to nudge higher in the final days of for 2010, as traders looked to end the year on a positive note.

"Trading has been light, but stocks are benefiting from the seasonal bias of higher equity prices," said Mark Luschini, chief investment strategist at Janney Montgomery Scott.

On Wednesday, stocks crept to another two-year high in quiet trading.

Stocks have climbed 6% in December, and are on track to post double-digit percentage gains for the year. For 2010 overall, the Dow is up about 11%, the S&P 500 is up nearly 13%, and the tech-heavy Nasdaq is up almost 18%.

Economy: After the start of trading, the National Association of Realtors is expected to report that pending home sales slipped 3% in November, after jumping 10.4% in October.

The Chicago PMI, a regional reading on manufacturing activity, is also due after the bell. Economists forecast the index to edge down to 61.5 in November, from 62.5 the previous month, which would still indicate expansion in the sector

Companies: Shares of Anadarko Petroleum Corp. (APC, Fortune 500) spiked by almost 5% at one point in premarket trading after the Daily Mail, citing unnamed sources, suggested that mining giant BHP Billiton (BHP) is gearing up to make a cash bid valued at $90 per share for the oil and natural gas producer. Shares of BHP edged up 1% in premarket trading.

World markets: European stocks were lower in afternoon trading. Britain's FTSE 100 slipped 0.2%, the DAX in Germany fell 1.2% and France's CAC 40 decreased 0.9%.

Asian markets ended mixed. In the final trading day of 2010, Japan's Nikkei dropped 1.1%, as the yen advanced to a fresh seven-week high against the dollar.

The yen has climbed more than 12% this year, and its strength has pressured the Nikkei, which dropped 3% in 2010. Japan has been taking steps to lower the value of the yen because doing so will improve profits for its powerful export sector.

The Shanghai Composite rose 0.3% and the Hang Seng in Hong Kong added 0.1%.

Currencies and commodities: The dollar lost ground against the euro and the Japanese yen, but rose slightly versus the British pound.

Oil for February delivery slipped 49 cents to $90.63 a barrel.

Gold futures for February delivery fell 70 cents to $1,412.80 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury fell, pushing the yield up to 3.39%, from 3.44% late Wednesday.