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Pre-Market Primer: Durable Goods Orders Soar, but Markets Are Still Soft

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Global markets are stabilizing after the Fed announcement on Wednesday.

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Stock futures sagged this morning but a better-than expected durable goods order report could brighten the mood in the markets.

Orders of durable goods increased 3.3% in April. Economists only expected a 1.5% rise. Capital expenditures also beat forecasts, rising 1.3%.

Wall Street is heading for a third straight day of losses. Dow (INDEXDJX:.DJI) futures are down 0.24% at 15,253 before the opening bell. S&P 500 (INDEXSP:.INX) futures sank 0.41% to 1,643.20 and Nasdaq (INDEXNASDAQ:.IXIC) futures fell 0.45% to 2,978.75.

Global markets were volatile overnight in the wake of the Fed's announcement that it will possibly taper off asset purchases. After dropping over 7% on Thursday, its worst drop since the 2011 earthquake. Japan's Nikkei (INDEXNIKKEI:.NI225) index ended the day up 0.89%.

Germany narrowly avoided a recession in the last quarter. Europe's largest economy grew 0.1% in the quarter after a steep 0.7% decline in the fourth quarter of 2012. Exports fell 1.8%, but personal spending rose 0.8%. German business confidence also rose. The IFO survey showed that investors and businesses are more upbeat about the current economic situation. The index rose to 110, beating forecasts of 104.5. Consumer confidence also unexpectedly rose to its highest level since September 2007.

Google (NASDAQ:GOOG) is facing an anti-trust probe from the Federal Trade Commission, according to Reuters. The FTC is looking into whether Google broke anti-trust regulations when it acquired DoubleClick, the display ad company, in 2007. Complaints from competitors allege that Google pushes ad clients to use other Google offerings such as Ad Exchange. The news wire's source said that the regulator has not yet notified Google.

Abercrombie & Fitch (NYSE:ANF) shares fell 10.5% after it reported a loss of $0.09 per share, up from a $0.25 loss a year earlier. Revenue also fell to $838.8 million. Analysts expected a loss of $0.05 on $938 million in sales for the holiday quarter that ended February 2. The company also cut its outlook for the year.

Sears (NASDAQ:SHLD) shares dropped 14% after reporting a heavy loss. The retailer took in $8.45 billion, down from $9.27 billion and made a loss of $1.29 per share.

Pandora (NYSE:P) shares are up 12% after delivering better-than-expected revenue. It posted a net loss of $20.2 million, or $0.12 per share. Revenue climbed 55% to $126 million. Pandora is still the Internet radio leader despite Google's similar offering. There are rumors that Apple (NASDAQ:AAPL) might wade into the space as well.

Twitter: @vincent_trivett
No positions in stocks mentioned.
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