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 (), S&P 500 ( ) and Nasdaq ( ) 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.
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 ( ) and DAX ( ) in Germany slid 0.6%, and France's CAC 40 ( ) 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 (
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 ( ) tumbled 18% in premarket trading after the solar power equipment maker lowered its 2011 sales and earnings guidance.
Netflix's (Fortune 500). On Monday, a spokesman for Netflix said the company doesn't comment on speculation.) stock fell Tuesday, a day after spiking on chatter that the company could be acquired by Verizon ( ,
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.
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