By Chris Dieterich 

U.S. stocks rose on Tuesday as markets stabilized after three straight days of deep declines.

Corporate earnings were in focus after quarterly reports from blue chips J.P. Morgan Chase & Co., Citigroup Inc., Wells Fargo & Co. and Johnson & Johnson.

The Dow Jones Industrial Average rose 102 points, or 0.6%, to 16423 in early trading. The S&P 500 added 14 points, or 0.8%, to 1889, while the Nasdaq Composite Index rose 45 points, or 1.1%, to 4259.

Yields on benchmark 10-year Treasury notes fell to 2.215%, from 2.305% late on Friday. U.S. bond markets were closed on Monday for Columbus Day. Bond yields fall when prices rise.

Uncertainty about the pace of global economic growth and changes to the Federal Reserve's easy-money policies have combined to force stocks suddenly and sharply lower in recent weeks. The Dow industrials slumped 223 points on Monday for their ninth decline over the past 11 trading days.

The S&P 500 finished Monday down 6.8% since closing at an all-time high on Sept. 18, its steepest pullback since late 2012, when investors wrestled with the implications of the so-called fiscal cliff and political stalemate in Washington, D.C.

Another move lower on Tuesday would give the S&P 500 its first four-session streak of declines this year.

"The damage is becoming too hard to ignore," said Mike O'Rourke, chief market strategist at JonesTrading Institutional Services, noting that he anticipates that some investors are likely to move chunks of their stock allocation to cash in the months ahead rather than weather more choppy trading.

European equity markets fell after Germany's closely watched ZEW survey showed a sharp drop in economic sentiment. The Stoxx Europe 600 declined 0.2%, paring losses of as much as 1.4% earlier. German government bonds surged to their strongest level on record.

J.P. Morgan Chase swung to a third-quarter profit, but narrowly missed analyst estimates, as legal expenses overshadowed gains in fixed-income trading revenue. J.P. Morgan benefited from stronger investment banking fees, but saw a slump in debt capital markets. Shares declined 1.4%.

Citigroup said its quarterly profit rose 6.6% from a year earlier, topping analyst estimates, helped by stronger-than-expected trading revenues. The firm set plans to further retreat from some foreign retail-banking markets. Shares rose 2.7%.

Wells Fargo's quarterly profit met Wall Street's profit expectations, though results showed a continued slowdown in the bank's mortgage business. Shares declined 1.8%

Johnson & Johnson rose 1.4% after the health-care products company said its quarterly earnings rose 59% on higher pharmaceutical sales. The company's report is considered a bellwether since the maker of Band-Aids and Listerine mouthwash is involved in so many business lines.

Oil prices continued to spiral lower. U.S. crude futures declined 1.1% to $84.81. Increased production in the U.S. has helped contribute to a glut of global oil supply at a time when demand for petroleum products, notably in Europe, is ebbing.

Falling oil prices continued to hit shares of energy companies, with that segment of the S&P 500 dropping 12% over the past month. Energy stocks rebounded on Tuesday, however, as one of the market's leaders.

Shares of travel and airline stocks also rebounded after taking a hit on concerns about the spread of the Ebola virus. United Continental Holdings Inc. and Delta Air Lines Inc. rose Tuesday after sinking 7.3% and 6.1% on Monday, respectively.

In Asia, Japan's Nikkei fell 2.4%, while Hong Kong's Hang Seng index declined 0.4%. The dollar rose against the euro and yen.

Gold futures added 0.3% to $1,233.70 an ounce.

Write to Chris Dieterich at chris.dieterich@wsj.com

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