* 10-year Treasury yields rise and lift financials
* Illinois Tool Works slumps after cutting profit forecast
* Dollar’s strength, trade war fears weigh on sentiment
* Amazon falls after Trump’s latest attack
* Indexes up: Dow 0.09 pct, S&P 0.19 pct, Nasdaq 0.19 pct (Changes comment, adds details, updates prices)
By Amy Caren Daniel
July 23 (Reuters) - U.S. stocks rose on Monday as a jump in 10-year bond yields to a month’s high boosted financials and technology stocks rebounded, with investors waiting for earnings from marquee corporations to assess the impact of an escalating U.S.-China trade row.
The financial sector rose 1.42 percent after 10-year U.S. Treasury yields gained as the Federal Reserve was seen as likely to continue raising interest rates despite criticism from President Donald Trump.
“If long-term financial rates rise it will be beneficial for financials and will add to their already healthy balance sheets,” said Jeremy Bryan, portfolio manager at Gradient Investments in Arden Hills, Minnesota.
“There is a rhetoric with regard to trade wars and tariffs, but the bigger story is going to be what companies are saying with regard to it.”
Shares of Illinois Tool Works fell 8 percent and weighed on the trade-sensitive industrial sector.
The machinery parts maker slashed its full-year forecast, joining Netflix in blaming the strong dollar for the cut. Several U.S. multinationals are reevaluating their currency hedging strategies as a surge in the greenback puts pressure on their overseas revenue.
Investors are worried that the U.S.-Sino trade war could spill over to the currency markets. Trump has accused China of manipulating the yuan, while criticizing the dollar’s recent strength.
The technology group, which was trading lower earlier in the session, rose 0.32 percent with Google-parent Alphabet up 0.72 percent, boosting the markets ahead of results after the bell.
At 1:00 p.m. ET, the Dow Jones Industrial Average was up 22.00 points, or 0.09 percent, at 25,080.12, the S&P 500 was up 5.36 points, or 0.19 percent, at 2,807.19 and the Nasdaq Composite was up 14.50 points, or 0.19 percent, at 7,834.70.
Six of the 11 major S&P sectors were lower, with the defensive utilities sector falling the most.
Second-quarter earnings season has been healthy so far, with analysts’ profit growth forecast now at about 22 percent, up from 20.7 percent at the start of the month, according to Thomson Reuters I/B/E/S.
Amazon.com slipped 0.4 percent and was the biggest drag on the Nasdaq after U.S. President Donald Trump renewed his attacks on the retailer.
Hasbro jumped 13.7 percent, the most on the S&P 500, after posting upbeat results. Rival Mattel gained 4.4 percent.
Tesla’s shares fell 3.5 percent after a report that the company has turned to some suppliers for a refund of previously made payments in a bid to turn a profit.
Oilfield services provider Halliburton sank 8.3 percent as investors focused on growing pipeline constraints in the Permian Basin.
LifePoint Health soared 35.3 percent and lifted shares of hospital operators after the company agreed to be bought by Apollo Global Management in a deal valued at about $5.6 billion.
Declining issues outnumbered advancers for a 1.28-to-1 ratio on the NYSE and a 1.02-to-1 ratio on the Nasdaq.
The S&P index recorded 23 new 52-week highs and five new lows, while the Nasdaq recorded 95 new highs and 42 new lows. (Reporting by Amy Caren Daniel in Bengaluru; Editing by Sriraj Kalluvila and Shounak Dasgupta)