NEW YORK (CNN/Money) - U.S. stock markets bounced back early Tuesday, as investors tiptoed back in after a three-session selloff.

After 10 minutes of trading, the Dow Jones industrial average (up 53.33 to 10118.08, Charts), the Standard & Poor's 500 (up 5.23 to 1100.63, Charts) index and the Nasdaq composite (up 17.61 to 1927.51, Charts) all ticked higher, in particular the Nasdaq.

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Stocks were knocked sharply lower Monday after an Israeli air strike killed the founder of Hamas, a Palestinian Islamic fundamentalist organization that the U.S. State Department has called a terrorist group. The attack sparked threats of retribution from both Hamas and al Qaeda.

The ensuing unease put pressure on the major indexes, pushing them to their lowest levels of the year.

But after sliding for three straight sessions as part of a broader two-week selloff, stocks were on the rebound Tuesday. The recovery touched a variety of sectors, with 25 out of 30 Dow components gaining at the open.

Some upbeat earnings news helped. Like several other brokerages before it, Goldman Sachs (GS: up $1.03 to $102.33, Research, Estimates) reported strong quarterly earnings that rose from a year earlier and topped estimates, helped by solid revenue from stock and bond trading, as well as its advisory role in several mergers and acquisitions.

Among other early gainers, handheld device maker PalmOne (PLMO: Research, Estimates) rallied after it reported fiscal third-quarter earnings late Monday of a penny a share, up from a loss of 85 cents a year earlier. Analysts surveyed by First Call were expecting a loss of 33 cents per share. The gains resulted from strong sales of its Palm personal digital assistants.

Treasury prices fell, pushing the 10-year note yield up to 3.73 percent from 3.71 percent late Monday. The dollar edged higher versus the yen and euro.

Among commodities markets, Brent crude oil futures fell 17 cents to $32.63 a barrel in London. COMEX gold fell 80 cents to $416.80 an ounce.

Asian markets closed mixed. European markets gained at midday there.