The outlook for hammered North American stock markets is mixed for Tuesday, a day after the S&P/TSX composite index fell to its lowest level since October 2003 while the Dow Jones industrial average posted its worst showing since May 1997.

U.S. stocks appear set for a minor rebound while the S&P/TSX appears to be headed lower as the effect of falling oil prices and gloomy earnings from car part maker Magna International Inc. make their impact.

An earnings report from Home Depot Inc., the U.S.’s largest home improvement retailer, is likely to have a negative impact on U.S. markets. The company reported a fiscal fourth-quarter loss of US$54 million Tuesday mostly due to its plan to shut its four smaller home-improvement brands. Although adjusted results topped analysts’ estimates, sales dropped 17% to US$14.61 billion from US$17.66 billion, with same-store sales down 13% for the quarter.

Investors are also awaiting an economic reading from U.S. Federal Reserve Board Ben Bernanke, who will appear on Capitol Hill on Tuesday to for the first of two days of testimony on the economy and monetary policy.

Overseas, Asian stock markets followed their North American brethren as they tumbled on Tuesday. In Japan, the Nikkei 225 stock average lost 107.60 points, or 1.5%, to 7,268.56. Hong Kong’s Hang Seng sank 376.58, or 2.9%, to 12,798.52, while South Korea’s Kospi fell 3.2% to 1,063.88. Mainland Chinese shares, among the year’s best performers, got slammed, and the Shanghai benchmark plunged 4.6%. Elsewhere, Australia’s stock measure was off 0.6%, and Singapore’s benchmark lost 1.4%. Indices in Taiwan and India shed about 1%.

In Europe, the FTSE 100 index of leading British shares was down 41.70 points, or 1.1%, at 3,809.03, while Germany’s DAX slid 99.10 points, or 2.5%, to 3,837.35. The CAC-40 in France was down 50.48 points, or 1.9%, to 2,677.39.

On Monday, the S&P/TSX composite index plunged 302.32 points, or 3.8%, to close at 7,647.67, with all 10 main groups firmly lower for the day.

The energy group experienced the biggest drop, falling 5.4% as oil futures retreated. Crude for April delivery fell US$1.59 to end at US$38.44 a barrel on the New York Mercantile Exchange.

Companies trading on the TSX Venture Exchange also declined, sending the S&P/TSX Venture composite index down 13.96 points, or 1.6%, to 878.94.

The loonie declined by US0.12¢ against the U.S. dollar, to close at US79.92¢.

South of the border, news that U.S. regulators would launch a revamped program to shore up troubled banks failed to inspire investor confidence. Concerns about the fate of the banking system sent the main indices sharply lower.

The Dow Jones industrial average plummeted 250.89 points, or 3.4%, to end at 7,114.78 — its lowest closing point since May 1997.

The S&P 500 ended down 26.72 points, or 3.5%, at 743.33.

The Nasdaq composite index fell 53.51 points, or 3.7%, to 1,387.72.