NEW YORK - Stock prices finished mixed in active trading Monday as blue-chip issues advanced but recovered less than half the losses they suffered in Friday's sharp drop.

The Dow Jones industrial average climbed 14.37 to 1782.93. The Dow lost 35.68 points Friday.

Broad market indexes also gained. The New York Stock Exchange composite index rose 0.74 to 135.54. Standard & Poor's 500-stock index added 1.99 to 235.33. The price of an average share jumped 22 cents.

The broader market gave a lackluster performance. Losing issues outpaced advances 1,020-736 among the 2,082 issues traded.

Big Board volume totaled 143,810,000 shares, down from 199,120,000 Friday.

Composite volume of NYSE-listed issues on all U.S. exchanges and over the counter totaled 172,908,550 shares, compared with 237,639,890 traded Friday.

Analysts said trading was "choppy" and "confused" after the Dow's sharp drop Friday. They cited demand for stocks that bore the brunt of Friday's selling but wariness about potential disappointments regarding corporate earnings.

Honeywell warned that its earnings would be disappointing. Another computer company, Burroughs, issued a similar cautionary last week. Such forecasts exacerbate investors' worries about a flagging economy, analysts said.

"Investors seem to be having trouble reorganizing their strategies after Friday's expiration of March stock index futures and options," said Eugene Peroni Jr. of Bateman Eichler, Hill Richards.

Peroni noted Monday's action - a strong blue-chip sector and a weaker broad market - reversed Friday's pattern, which saw the big-capitalization stocks lose ground while the broader market held firm.

"There's a lot of indecisiveness and no real, strong leadership," Peroni said.

On the trading floor, Commonwealth Edison (ex-dividend) was the most active NYSE-listed issue, rising 1/4 to 33. AT&T followed, unchanged at 22 3 /8.

Union Carbide was third, advancing 1 3 /4 to 21 1/8. The company agreed to pay $350 million to settle damage claims resulting from the December 1984 poison gas leak in Bhopal , India, a smaller sum than most analysts had expected. India has called the settlement unacceptable.

Genstar fell 1/2 to 39 3 /4 in active trading. The Canadian firm said it is reviewing an "unsolicited" $54-a-share offer for all of its shares by Imasco Ltd. Genstar's stock climbed 6 Friday.

Advancing blue-chip issues included General Motors, up 1 to 84 3 /4, American Express, up 3 /8 to 66, Sears, up 1 to 47, Philip Morris, up 2 3 /4 to 122, and General Electric, up 1 to 153 1/4, Cray Research was down 3 /4 to 67 3 /4 and Honeywell fell 2 7/8 to 71 1/8. Burroughs added 2 to 64 5/8.

Airline issues were higher after OPEC's oil ministers broke off nine days of emergency talks Monday without agreeing on how to stem the worldwide plunge in oil prices. AMR climbed 1 1/8 to 52 3 /4, Delta rose 3 /4 to 42, UAL added 7/8 to 56 7/8 and TWA inched up 1/8 to 18 1/4.

Oil issues, meanwhile, mostly weakened. Phillips eased 1/8 to 9 7/8, Atlantic Richfield fell 1 3 /4 to 51, Chevron dropped 5/8 to 37, and Mobil was off 1/8 to 29 1/2. Royal Dutch fell 2 3 /4 to 72 1/4. An exception was Exxon, which rose 1/8 to 55.

Some defense and aerospace stocks advanced. Rockwell jumped 3 to 45 and General Dynamics gained 3 1/4 to 85.

Prices were lower in active trading on the American Stock Exchange.

Wickes led the Amex actives, unchanged at 6 1/4. B.A.T. Industries followed, easing 1/16 to 5 13/16. Echo Bay Mines was third, falling 3 /8 to 15 7/8.

After Friday's record finish, the American Stock Exchange index fell 3 .23 to 267.72. The price of an average share lost 17 cents. Declines outpaced advances 383-244 among the 843 issues traded. Composite volume totaled 15,317,600 shares, compared with 22,036,075 Friday.

The National Association of Securities Dealers index of OTC stocks fell 1.92 to 370.67.