April 23 (Reuters) - Wall Street was set for gains on Monday as optimism about the strong earnings season helped ease concerns on rising USA bond yields.
Verizon, Harley-Davidson and Fifth Third Bancorp all rose sharply in early trading Tuesday after reporting results that came in ahead of analysts' forecasts.
Drugmaker Shire rose 3.3 percent after saying it had received another takeover offer from Japanese rival Takeda. S&P 500 e-minis were up 5.75 points, or 0.22 percent.
On Monday, the 10-year Treasury note yield hit a high of 2.99 percent, threatening to reach 3 percent or higher in January 2014. Toymakers Hasbro and Mattel are lagging the rest of the market after Hasbro reported a loss and a big drop in sales as the companies dealt with the demise of Toys R Us. The yield on the 10-year Treasury note continued to trade at four-year highs as it rose to 2.98 percent from 2.96 percent late Friday. Investors have been selling Treasurys this month, pushing yields higher, amid expectations of rising inflation, which could prompt the Federal Reserve to tighten monetary policy pace.
ASIA'S DAY: Tokyo's Nikkei 225 fell 0.3 percent to 22,088.04 and South Korea's Kospi shed 0.1 percent to 2,474.11. The Russell 2000 index of smaller-company stocks lost 1 point, or 0.1 percent, to 1,562.
The S&P 500 index ended little changed at 2,670.
"If we get to that level (3 percent on the 10-year yields), it's not going to be too much of a negative for investors because earnings have been coming in quite good", said Jeff Kravetz, regional investment strategist at U.S. Bank Wealth Management. Alphabet Inc (GOOGL.O) reports after the market closes on Monday.
The CEO of Sears, Eddie Lampert, called for the struggling retailer to sell the Kenmore brand and its home improvement business.
ENERGY: Benchmark U.S. crude lost 16 cents to $68.25 per barrel in electronic trading on the New York Mercantile Exchange while Brent crude, used to price global oils, rose 4 cents to $74.10 per barrel.
The S&P 500 index rose 5 points, or 0.2 percent, to 2,675.
CURRENCIES: The dollar rose to 108.24 yen from 107.60 yen.
The CAC 40 in France gained 0.5 percent.
ANALYST TAKE: "While markets do not seem as sensitive to the potential conflict between the US and North Korea recently, the potential for a denuclearization would no doubt provide a boost for the Asian region in particular", said Joshua Mahony, market analyst at IG. Hong Kong's Hang Seng declined 0.5 percent.