US pre-open: Stocks set to build on gains ahead of housing data

US stock futures pointed to another day of solid gains on Tuesday, as investors awaited data on the housing market.

The Dow Jones Industrial Average is expected to open up 36 points, while the S&P 500 and the Nasdaq are expected to begin the session four and 14 points higher respectively.

US stocks rallied on Monday, with the Dow Jones Industrial Average and the S&P 500 both notching intra-day records following dovish comments from a Federal Reserve member called for a postponement in the first hike in interest rates.

European stocks surged forward on Tuesday, after Benoît Coeuré, a member of the European Central Bank executive board said that the bank will increase its purchases of euro-zone assets in May in June ahead of expected low liquidity during the summer months.

Analysts expected Coeuré's words to provide a boost to US equities early in the session.

“The comments will keep the Dow Jones Industrial Average in its upward trend,” said David Madden, market analyst at IG.

The highlight of the economic calendar is the release, at 13:30 BST, of the Commerce Department's reports on housing starts and building permits in April.

Housing starts are expected to have increased to an annual rate of 1.03m from 926,000 in March, while building permits are expected to have risen to 1.06m last month, not far from the near seven year highs reached in February

"Both figures point to an ongoing recovery in the housing market and are near the highest level since the financial crisis, which further supports the view that the recovery is on a stable footing," said Oanda's senior market analyst Craig Erlam.

Mixed earnings on Wall Street

In company news, video-game maker Take-Two Interactive Software jumped 7.23% ahead of the opening bell, despite saying on Monday that its fourth-quarter loss widened and issued a weak outlook that fell short of Wall Street’s expectations.

Measurement group Agilent Technologies fell 3.8% in pre-market trading after reporting a decline in second quarter earnings and revenue on Monday.

Ahead of the opening bell, Wal-Mart reported sales that fell of short of Wall Street's estimates, dragging shares down 1.94%.

Home-improvement retailer Home Depot edged 0.8% higher after reporting a rise in first quarter earnings and sales ahead of the bell. The group lifted its full-year guidance for 2015 and confirmed it will repurchase another $3.4bn in shares within the end of the year.

The dollar rallied over 1% against both pound and euro and gained 0.15% against the yen, while gold futures fell 0.55% to $1,220.90.

Oil prices fell, with West Texas Intermediate losing 0.53% to $59.92 a barrel, while Brent shed 0.67% to $65.83 a barrel.