Stocks are set to rebound with help from better economic data and rebounding commodities prices. Forty-five minutes before the opening bell on Wall Street, stock index futures indicate that the Dow Jones Industrial Average might recapture 30 or 40 of the 187 points lost the day before.

Stock index futures edged higher after a report showed housing starts increasing to an annualized rate of 532,000 homes in May, which was up from 454,000 the month before and better than economist forecasts of 485,000.

Building permits, a better gauge of future activity, rose to 518,000 from 494,000. Economists had expected an increase of 14,000.

Meanwhile, a separate report on inflation came in well below estimates. The Labor Department reports that its Producer Price Index [PPI] edged up .2 percent in May, which follows a .3 percent increase the month before and falls well below economist forecasts of .3 percent. Excluding food and energy, the core PPI fell .1 percent. Economists were looking for a .1 percent increase.

Stock index futures extended morning gains on the heels of the data. Bonds are under water. The benchmark ten-year Treasury is off 12/32nd and yields 3.76 percent.

The dollar gave back some of Monday’s gains, falling .63 to 97 against the yen. The euro gained .014 to 1.3915 on the buck.

Dollar weakness is helping support higher crude and oil prices. Gold gained $10 to 4937.50 an ounce. Crude is up $1.70 to $72.32 a barrel.

Among the stocks to watch, Best Buy (BBY) is down 3 percent after reporting quarterly earnings of 42 cents per share, which beat by 8 cents, but revenues fell short of expectations. Sprint Nextel (S) is higher after Research in Motion (RIMM) unveiled a new Blackberry Tour smart phone available from Sprint. Adobe (ADBE) might see action ahead of earnings after the bell. FedEx (FDX) and Morgan Stanley (MS) are expected to report tomorrow.