* Stable dollar, weak earnings weigh on futures
* Home prices fall in August
* Futures off: S&P 6.1 pts, Dow 48 pts, Nasdaq 8.5 pts (Recasts, adds details)
By Leah Schnurr
NEW YORK, Oct 26 (Reuters) - Wall Street was set for a lower open on Tuesday, the day after hitting a five-month high, pressured by a stronger dollar and lackluster corporate results.
Texas Instruments Inc fell in premarket trade after it warned that fourth-quarter revenue will be hurt by slowing demand, while United States Steel Corp tumbled after posting a loss and warning of a fourth-quarter deficit due to the uncertain economy in North America and Europe.
Texas Instruments slipped 1.5 percent to $28.55, while U.S. Steel slumped 5.8 percent to $39.80.
Equities continued to take their cue from the U.S. dollar, which steadied with investors wary of pushing it lower. The dollar index was up 0.6 percent.
Stocks and the greenback have formed an inverse relationship, exacerbated by expectations the U.S. Federal Reserve will embark on another round of economic stimulus.
Rick Meckler, president of investment firm LibertyView Capital Management in New York, noted the dollar-equities relationship could start to unravel if the greenback falls too far.
"You're definitely starting to see a situation where people are hoping the Fed can find a way to keep rates about where they are today and keep it from being a deflationary economy without weakening the dollar much further," said Meckler.
"How they find a way to walk that tightrope is a real problem for the market," he added. "You can't continue to bring the currency down and ultimately have successful financial markets."
In a speech Monday at Cornell University, William Dudley, president of the New York Fed, said the Fed cannot "wave a magic wand" to fix the economy overnight, but it can provide "essential" support,
S&P 500 futures dipped 6.1 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 fell 48 points, and Nasdaq 100 futures gave up 8.5 points.
Futures added to losses after a report showed single-family home prices fell in August, hovering near recent lows after the expiration of popular homebuyer tax credits.
Later in the morning, data is expected on October consumer confidence and forecast rising to 49.2 from 48.5 the month before.
Lower-than-expected quarterly profit sent Kimberly-Clark Corp down 3.4 percent to $64.19. Regions Financial Corp slumped 6.8 percent to $6.55 after the bank reported a bigger-than-expected third-quarter loss.
Stocks rose to a five-and-a-half month high on Monday as a falling dollar, partly driven by expectations of further Fed stimulus, prompted investors to buy riskier assets.