* 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 off: Dow 111 pts, S&P 13.6 pts, Nasdaq 23.75 pts
By Ryan Vlastelica
NEW YORK, Aug 24 (Reuters) - U.S. stock index futures pointed to a drop of about 1 percent at the open 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.
"The housing market has been knocked down hard and is struggling to get back up again," said Alan Gayle, senior investment strategist at RidgeWorth Investments in Richmond, Virginia. "The expectation is that this will be another sign the economy is struggling."
European stocks tumbled to a 5-week low, with construction shares leading decliners. In Tokyo, shares sank to a 15-month closing low with hedge funds and foreigners seen selling amid mounting concern about government inaction over the strong yen, which touched a 15-year high against the dollar of 83.73.
"I use the yen as a barometer of investor sentiment, and this shows how it continues to get increasingly negative," Gayle said.
S&P 500 futures fell 13.6 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 111 points, and Nasdaq 100 futures slid 23.75 points.
Fair value indicates the S&P 500 may test support after the open at the 1,057-1,060 area, which includes its 1-month low and the 23.6 percent retracement of the 2010 high-to-low slide. Failing to hold that level opens the door for the benchmark to test 1,040.
Dell Inc is preparing to sweeten its offer 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 3.5 percent to $26.98 in premarket trading while Dell fell 1.6 percent to $11.75 and HP, a Dow component, slid 1.1 percent to $38.60.
Medical device maker Medtronic Inc fell 7.8 percent to $32.26 in premarket trading after it reported first-quarter revenue that fell from the prior year.
Discount retailer Big Lots Inc posted second-quarter earnings that beat expectations by 1 cent a share. It also raised its 2010 profit view, but the stock slid 4.2 percent to $30.43 in light premarket action.
According to a late Monday report in the Wall Street Journal, at least seven of the 17 top Federal Reserve officials at the U.S. central bank's August meeting had reservations about the decision to buy more Treasuries.
"The idea of this dissension is adding to the nervousness in the markets," said John Brady, senior vice president at MF Global in Chicago, adding that it was stoking concerns about deflation.
October crude futures were on track to fall for a fifth day, dropping 1.7 percent to $71.88 per barrel on concerns about the ability of the United States to work through its record inventory.
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.