Wall Street report: Monday open

STOCKS slipped in early trade as investors took profits on the strong gains of recent sessions. The blue-chip Dow Jones Industrial Average was down 27.95 points at 10,544.54 after the first hour, and the tech-heavy Nasdaq was off 16.3 at 1913.37.

The market rallied strongly last week after Federal Reserve Chairman Alan Greenspan said recovery from the recession 'is already well under way'. Still, investors are concerned that the recovery will be lacklustre and won't translate into robust corporate profits.

Kmart rose 3 cents to $1.32 after the discount stores chain, which is in bankruptcy proceedings, said chief executive Chuck Conaway had left, to be replaced by chairman James Adamson. Williams-Sonoma dropped $1.69, or nearly 3.5%, to $47.35 after the the home products retailer said first-quarter earnings would not be as strong as analysts expected.

Microsoft was off 78 cents at $63.17, while web design software firm Macromedia fell $1.69 to $18.81 after it was downgraded by Salomon Smith Barney.

A full report will follow