NEW YORK (CNN/Money) - U.S. stocks sank early Wednesday as investors took in some management changes at Sun Microsystems and a weaker-than-expected report on the manufacturing sector.

At 10:05 a.m. ET, the Nasdaq composite lost 33.96 to 1,654.27. The Dow Jones industrial average dropped 67.74 to 9,878.48. The Standard & Poor's 500 index fell 8.81 to 1,068.11.

The Institute of Supply Management's manufacturing activity index fell to 53.9 from 55.6 the previous month. The report was weaker than the 55 consensus of economists surveyed by Briefing.com. However, a reading above 50 still indicates expansion in the sector.

A weaker-than-expected report on construction spending also contributed to the decline. The government said March construction spending declined 0.9 percent, weaker than the 0.1 percent drop forecast by economists.

In corporate news, shares of Sun Microsystems (SUNW: down $0.92 to $7.26, Research, Estimates) fell after the largest maker of Unix servers said that president and chief operating officer Edward Zander has decided to retire from his full-time responsibilities with the company and will hand over his duties to CEO Scott McNealy.

Treasurys were a little higher in early trade, pushing the 10-year note yield to 5.08 percent.

European markets were little changed at midday. Tokyo and Sydney stocks closed higher, while other Asian markets were closed for the International May Day holiday. The dollar was little changed versus the euro and a little weaker against the yen.

Brent crude oil futures fell 40 cents to $26.07. Gold prices fell to $308 an ounce.