US stocks quiet but holding near record highs at the midday point of Thursday trading

12:05pm: Wall Street holds steady at midday Investors were quiet on New Year's Eve, leaving US stocks hovering around record highs on the last trading day of the year.  The Dow Jones Industrial Average held firm at 30,378 points, just 0.1% off opening levels, while the S&P 500 sat near 3,730 points, or 0.01% lower. The Nasdaq, meanwhile, dipped 0.3% to hit 12,838. “Investors are breathing a sigh of relief that some stimulus is getting out there,” said Chris Gaffney, president of world markets at TIAA Bank. This “has been an unprecedented year, and I think that some of the risks that we entered into 2020 with, we’re leaving without those risks.” 9.45am: Out with the old US stocks were dull in early trading on New Year’s Eve as the ravages of the 2020 coronavirus (COVID-19) pandemic continued to be felt in the latest US weekly jobless claims even though they retreated further from three-month highs hit earlier in December. After a quarter of an hour of trading on the final session of 2021, the Dow Jones Industrial Average was down 54 points, or 0.2% at 30,355.55 after reaching a record closing high on Wedesday, with the S&P 500 index losing 0.1%, but the Nasdaq Composite flat. US weekly initial jobless claims declined by 19,000 to a seasonally adjusted 787,000 in the week ended December 26, 2020. That marked a second consecutive decline from the three-month high recorded earlier in December when coronavirus cases were surging and more states were bringing back economic restrictions to control the spread. However, last week’s level remains higher than any recorded before in this benighted year, although it is down sharply from a peak of nearly 7 million hit in late March. Wall Street indexes dropped sharply in March at the start of the coronavirus (COVID-19) pandemic before snapping back to post record highs in December as vaccines and economic stimulus packages brought hope for 2021. Naeem Aslam, chief market analyst at Avatrade commented: “2020 has been an incredibly intriguing year for the stock market as we have seen one of the sharpest decline in the US stock market as the major indices plunged over 30% in mid-March earlier this year. “And following that, we experienced one of the fastest recoveries for the US equity markets. We saw the US and European stock indices scoring several record highs. There is no doubt that it is the Nasdaq index that deserves the crown as the index is up over 40% this year, and most of the gains are chiefly due to the mammoth rise in Amazon, Apple, Facebook, Netflix, Tesla, Zoom, and other work from home related stocks.” He added: “Pharma sector also had one of the finest years as companies like BioNtech and Moderna scored one of the best year-to-date performances, and their stocks have climbed over 100%. Airlines, tourism, hospitality, and retail sectors have been hit hard, and stocks such as American Airlines, Delta, United Airlines still have massive upside left. “Traders are hoping that they will be able to reap their reward from their investments in these companies in 2021 as economic recovery shifts into a higher gear. There is no doubt that the worst may be behind us, and with Biden's presidency and coronavirus vaccine, good days may be ahead for the US and global economy.” 7.20am: Not so fond farewell to 2020 US stock futures pointed to a mixed opening on New Year’s Eve, with Wall Street set for a quiet finish to a year that saw the major indexes drop sharply in the spring at the start of the coronavirus (COVID-19) pandemic before snapping back to post record highs in December as vaccines and economic stimulus packages brought hope for 2021. Futures for the Dow Jones Industrial Average wavered between gains and losses on Thursday, with the S&P 500 index seen similarly becalmed, although Nasdaq 100 index futures ticked up 0.2%. The three major US indexes have all notched up record closes so far in 2020, with the Dow Jones hitting its 13th all-time finishing high of the year on Wednesday. The Nasdaq Composite Index is on track for its best annual performance since 2009. Trading on Thursday is likely to be muted as investors hold off making any big changes to portfolios ahead of the new year holiday. US and European markets will all be closed on New Year’s Day. Investors are hoping that the widespread rollout of vaccines will allow for the resumption of normal social and business activity, helping accelerate the economic rebound in 2021. Central banks and governments are also widely expected to continue providing additional support to the economy. Data on US unemployment benefits claimants in the week ended December 26, 2020, are due at 8.30am ET. Economists expect weekly jobless claims to have edged higher, as a surge of coronavirus cases across the US has prompted some states to impose new restrictions on businesses. California has become the second state to record a case of the new, more infectious strain initially discovered in the UK. Among corporate news, ExxonMobil (NYSE:XOM) has said it expects to write down US$18bn-US$20bn of assets amid the sector crisis, although higher oil, gas and chemicals prices are expected to lift fourth-quarter earnings.