(Updates with after-hours share moves in Circuit City and Starbucks)

By Kristina Cooke

NEW YORK, Jan 7 (Reuters) - The Dow industrials and the S&P 500 rose on Monday, led by health-care and consumer staple shares, as investors snapped up stock in companies seen able to withstand any economic slowdown following dismal employment data last Friday.

Drug maker Merck & Co (MRK.N: Quote, Profile, Research) and cigarette maker Altria Group Inc (MO.N: Quote, Profile, Research) were among defensive plays by investors that helped the S&P and the Dow eke out gains at the end of a choppy session and gave the S&P its first positive finish of 2008.

But the Nasdaq finished lower, as technology shares with global exposure fell on concerns a U.S. slowdown could damage the global economy. Apple Inc (AAPL.O: Quote, Profile, Research) fell 1.3 percent, while Hewlett-Packard Co (HPQ.N: Quote, Profile, Research) slid 3.2 percent.

"The market is trying to find its footing after a poor start to the year," said Kurt Brunner, portfolio manager with the Swarthmore Group in Philadelphia. "The staples names are hanging on in there, but you've had a lot of talk about the global slowdown and how that is going to impact the industrial names and technology. Hewlett's really taking it on the chin today."

Retailers will be in the spotlight on Tuesday. After Monday's closing bell shares of Circuit City CC.N fell 5 percent to $4 when the electronics retailer reported an 8.9 percent drop in December sales.

Shares of Starbucks Corp (SBUX.O: Quote, Profile, Research), meanwhile, rose 4.5 percent to $19.20 in extended trade after the coffee house chain said Chairman Howard Schultz will return in the additional role of chief executive and the company will focus on international growth.

The Dow Jones industrial average .DJI ended up 27.31 points, or 0.21 percent, at 12,827.49. The Standard & Poor's 500 Index .SPX was up 4.55 points, or 0.32 percent, at 1,416.18.