The S&P 500 and Dow industrial stock index futures pared gains on Tuesday, while Nasdaq futures turned negative after a report showed new U.S. housing starts and permits unexpectedly fell to record lows in April, tempering hopes of economic stabilization.

S&P 500 futures rose 1.10 points and were above 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 climbed 10 points, but Nasdaq 100 futures dipped 3 points.

(Reporting by Ellis Mnyandu; editing by Jeffrey Benkoe)