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NEW YORK (CNNMoney) -- U.S. stocks were trending toward a lower open Wednesday after the Federal Reserve said it would not be taking action to counter Europe's debt crisis.

The Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were lower, although they were higher earlier in the morning. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.

U.S. stocks ended in the red Tuesday, giving up an earlier rally, after the Federal Reserve kept rates unchanged and issued a tepid outlook.

All the major indexes started the previous session about 1% higher. But stocks pulled back after a Dow Jones report said that German Chancellor Angela Merkel rejected suggestions to raise the funding limit for the European Stability Mechanism -- or ESM, which currently stands at €500 billion.

The fund goes into effect next year, and may run alongside the €440 billion European Financial Stability Facility.

Though political leaders have been taking steps toward a resolution for the region's debt problems, the details have yet to be worked out.

The euro was under pressure, breaching the key $1.30 level against the dollar and falling to its lowest level since mid-January.

World markets: European stocks were lower in afternoon trading. Britain's FTSE 100 (UKX) and DAX (DAX) in Germany slid 0.6%, and France's CAC 40 (CAC40) shed 1%.

Italy held a €3 billion of 5-year debt that reached a yield of 6.47% -- a new euro era high.

Asian markets ended lower. The Shanghai Composite (SHCOMP) dropped 0.9%, the Hang Seng (HSI) in Hong Kong fell 0.5% and Japan's Nikkei (N225) edged lower 0.4%.

Economy: The Mortgage Bankers Association said mortgage applications for the week ending Dec. 10 rose 4.1%.

November import prices rose 0.7%, which is the largest monthly increase since April. Export prices ticked up 0.1%, according to the Bureau of Labor Statistics.

Companies: Shares of First Solar (FSLR) tumbled 18% in premarket trading after the solar power equipment maker lowered its 2011 sales and earnings guidance.

Shares of electronics retailer Best Buy (BBY, Fortune 500) got slammed Tuesday after the company reported earnings that fell far short of forecasts.

Netflix's (NFLX) stock fell Tuesday, a day after spiking on chatter that the company could be acquired by Verizon (VZ, Fortune 500). On Monday, a spokesman for Netflix said the company doesn't comment on speculation.

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Currencies and commodities: The dollar lost strength against the British pound, but gained verses the euro and Japanese yen.

Oil for January delivery slipped $1.09 to $99.05 a barrel.

Gold futures for February delivery fell $25.40 to $1,637.70 an ounce.

Bonds: The price on the benchmark 10-year U.S. Treasury was little changed, with the yield holding steady at 1.96% from late Tuesday.