Blue chips gained while high-tech issues declined amid continuing concerns about the weakening economy and its impact on corporate profits.
At 1 p.m., the Dow Jones industrial average was up 93.72 at 10,875.17. The Nasdaq composite index lost 12.69 to 2,458.28, while the Standard & Poor's 500 index advanced 7.20 to 1,321.96.
Applera Corp.'s Celera Genomics unit gained on optimism the company will profit from its publication of the makeup of the human genetic code, which researchers hope to use to discover new cures for disease.
"I'm looking through the next six months of weakness to a recovery," said Robert Robbins, chief investment strategist with the Robinson-Humphrey Co. in Atlanta "A recession is unlikely and stocks do best during a moderate to sluggish economy."
Cisco rose 94 cents to $29.13 and was the most-active U.S. stock. The biggest maker of Internet equipment fell 21 percent last week after the company reported quarterly results that missed forecasts and said sales won't rise this quarter or next.
Intel gained $1. to $34.50, after falling 6.1 percent last week.
"With the Nasdaq coming back down, some of these stocks are looking fairly attractive," said Miles Berryman, who helps oversee $2.5 billion for J.P. Morgan Chase in London. "This is a time when you should be fairly optimistic about valuation levels because the downside is pretty limited from here."
Cisco shares are a good value below $30 and data storage makers, including EMC Corp., also are worth buying, Berryman said. Cisco trades for 44 times recent earnings, down from a high of 195 in March 2000. EMC trades or 66 times profit, down from 161 times in September. The S&P 500 has a price-earnings ratio of 27.
Johnson & Johnson rose $2.07 to $97.05, leading the Dow higher, after Banc of America Securities analyst Kurtis Kruger raised his rating to "strong buy" from "buy" and said he believes the shares could reach $130 in a year. Kruger said a new generation of stents, wire mesh tubes used to prop open vessels, could increase the company's revenue and earnings growth rates in 2002 and 2003.
Among other active stocks, Microsoft fell 63 cents to $24.63, Dell Computer declined 63 cents to $22.88 and WorldCom gained 94 cents to $19.94.
Celera gained $3.59 to $45.19. Celera's analysis of the human genome will be published this week in the journal Science, and the Human Genome Project's version is slated to appear in Nature.
Cigna rose $1.02 to $111.77. Goldman, Sachs & Co. analyst Charles Boorady raised the No. 3 U.S. health insurer to "recommend list" from "trading buy."
Federated Department Stores was up $2.10 at $43.25, while Kmart rose 26 cents to $8.68. Gap gained 39 cents to $27.39, and J.C. Penney rose 26 cents to $14.22.
U.S. systems and software stocks fell after analysts said Emulex Corp., a maker of computer-circuitry cards that speed data transmission, forecast that orders are being delayed and that it may not meet its revenue-growth estimates.
Emulex plunged $37.14 to $40.36. Robertson Stephens analyst Ara Mizrakjian said in a note to clients that Emulex said it may not meet its previous revenue growth forecasts. Competitor QLogic slumped $17.19 to $53.19.
Northwest Airlines gained 38 cents to $23.06. The airline and its mechanics said federal mediators released them from negotiations, clearing the way for the union to declare a strike if their four-year dispute isn't resolved within 30 days.