NEW YORK (TheStreet) -- U.S. stock futures were pointing to a weaker open Wednesday, stepping back after the previous session's rally as investors digested a downgrade to Japan's credit rating.
Futures for the Dow Jones Industrial Average were down by 94 points, or 109 points below fair value at 11,047. Futures for the S&P 500 were lower by 10 points, or 12 points below fair value, at 1149, and Nasdaq futures were off by 17 points, or 22 points below fair value.
Stocks surged Tuesday as better-than-expected global manufacturing data and speculation that the Fed may consider additional stimulus made investors more willing to take on risk.
Moody's Investors Service lowered the credit rating on Japan by one notch to Aa3 from Aa2 with a stable outlook. The ratings agency cited "large budget deficits and the build-up in Japanese government debt since the 2009 global recession."
A closely watched German business optimism index fell by more than economists expected in August. The index dropped to 108.7 from 112.9 in July. The market had only anticipated a dip to 111.
The FTSE in London was shedding 0.05% while the DAX in Frankfurt was adding 0.6%. Hong Kong's Hang Seng fell 2.1% and Japan's Nikkei lost 1%.
Economists are anticipating a 1.9% increase in July durable goods orders when the U.S. Census Bureau releases its report at 8:30 a.m. EDT. July's growth compares with a decline of 2.1% in June. Excluding transportation, orders are slated to dip 0.5% in July after ticking 0.1% higher in June, according to Briefing.com.
The Federal Housing Finance Agency will issue its housing price index for June at 10 a.m. In May, the index rose 0.4%. 
Mining company BHP Billiton(BHP) reported an increase in annual profit of nearly 86% on record production, robust demand and higher prices on iron ore and copper, but warned that it is challenged by "tight labor and raw material markets." The stock was losing 1.3% to $79.85 ahead of Wednesday's opening bell.
Luxury homebuilder Toll Brothers(TOL) said earnings rose to $42.1 million, or 25 cents a share, which included a tax benefit of $38.2 million. Revenue slipped 13% to $394.3 million, missing estimates for sales of $403.6 million. The company also said it is too soon to assess how recent financial volatility has impacted housing markets.
At 10:30 a.m., the Energy Information Administration will give its weekly read on crude oil inventories. Analysts are projecting an increase of 2 million barrels in the week ended Aug. 19, according to a Platts survey.
Late Tuesday, the American Petroleum Institute said crude supplies lost 3.34 million barrels last week.
The October crude oil contract was losing 24 cents to trade at $85.20 a barrel. Elsewhere in commodity markets, gold for December delivery was shedding $11.90 to trade at $1,849.40 an ounce.
The benchmark 10-year Treasury was rising 7/32, diluting the yield to 2.132%. The dollar weakened against a basket of currencies, with the dollar index down by 0.1%.
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-- Written by Melinda Peer in New York.
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