U.S. markets looked set to rebound Tuesday from yesterday’s selloff, ahead of readings on the housing market and consumer confidence. Here at home, investors digested a 21% drop in quarterly profit at Bank of Montreal.

Profit for the third quarter fell to $521 million, or 98¢ a share on a diluted basis, as BMO reported almost a quarter billion dollars in charges related to the U.S. housing market.

Bank of Nova Scotia is also scheduled to release its third quarter results later today.

There are no major economic releases from Statistics Canada today.

The Canadian dollar traded at US94.89¢ Tuesday morning, down 0.27 of a cent from Monday’s close.

South of the border, the Case-Shiller Home Price Index is due for release at 9:00. ET.

U.S. consumer confidence data for August will be released at 10:00 ET, and the minutes from the last Federal Open Market Committee’s rate-setting meeting are expected at 14:00.

In other earnings news, Rio Tinto Ltd., said that half-year profit more than doubled to a record on strong demand from China for iron, aluminum and other metals.

Profit for the six months through June 30 surged 112.5% to US$6.91 billion from US$3.25 billion the year before, largely due to higher commodity prices and production, particularly iron ore.

Light, sweet crude fell US$1.70 to US$113.41 in premarket electronic trading on the New York Mercantile Exchange.

On Monday, Toronto stocks fell sharply as worries over growing fallout from the credit crisis rattled investor confidence.

The S&P/TSX composite index closed down 158.33 points, or 1.18%, at 13,288.96. Nine of the 10 main TSX groups ended lower.

The junior S&P/TSX Venture composite index fell 11.62 points, or 0.60%, to 1,940.01.

In New York, U.S. stocks fell sharply as credit concerns dogged financial stocks while technology and industrial shares fell on worries about the health of the global economy.

The Dow Jones industrial average was down 241.73 points, or 2.08%, at 11,386.33. The S&P 500 was down 25.28 points, or 1.96%, at 1,266.92.

The tech-heavy Nasdaq composite index was down 49.12 points, or 2.03%, at 2,365.59.