US STOCKS-Futures fall as gloom builds, housing data awaited

* Indexes in Europe, Japan hit multi-month lows

* U.S. July existing home sales expected to fall from June

* Dell preparing to sweeten bid for 3PAR: report

* Futures down: Dow 70 pts, S&P 7.1 pts, Nasdaq 13.25 pts

* For up-to-the-minute market news see [STXNEWS/US]

(Adds quote, updates prices)

By Ryan Vlastelica

NEW YORK, Aug 24 (Reuters) - U.S. stock index futures fell on Tuesday, tracking global equities lower, as investors grew concerned over the pace of economic recovery and prepared for data expected to show further weakness in U.S. housing.

July U.S. existing home sales, scheduled to be released at 10 a.m. (1400 GMT), are forecast to fall to an annual rate of 4.7 million, according to a Reuters poll of economists. Improvement in the housing market is seen as key for any economic recovery.

"Expectations are quite low that low rates and prices will have been enough to attract buyers since the past few readings gave no hint that traffic was coming back," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

"This is a litmus test, and right now, it doesn't look like we'll see any life in the housing market until probably the latter part of this year."

European stocks tumbled to a 5-week low in morning trading, with construction shares among the leading decliners. In Tokyo, shares sank to a 15-month closing low with hedge funds and foreigners seen selling amid mounting concern about the authorities' inaction over the strong yen, which threatens a fragile economic recovery. For details, see [.EU] and [.T]

Dell Inc is preparing to sweeten its bid for 3PAR Inc , according to a Bloomberg report. The move comes a day after Hewlett-Packard Co bid $1.6 billion for the data storage company.

Shares of 3PAR gained 3.1 percent to $26.90 in premarket trading. Dell closed on Monday at $11.94 while HP, a Dow component, closed at $39.04. [ID:nN23223609]

S&P 500 futures fell 7.1 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 70 points, and Nasdaq 100 futures slid 13.25 points.

Discount retailer Big Lots Inc posted second-quarter earnings that beat expectations by a 1 cent a share and again raised its 2010 profit view. Medical device maker Medtronic Inc reported a decline in its first-quarter revenue. [ID:nSGE67M0KN] and [ID:nASA00OKX]

October crude futures were on track to fall for a fifth day, dropping more than 1 percent to $72.29 per barrel on concerns about the ability of the United States to work through its record inventory. [ID:nSGE67N07J]

Nokia Corp and chipmaker Intel Corp said on Tuesday their joint software venture, seen as crucial in helping Nokia improve its position at the top end of the handset market, was off to a solid start.

U.S. stocks slipped on Monday in one of the lightest volume sessions of the year, erasing gains sparked by HP's bid for 3PAR. (Editing by Padraic Cassidy)