Wall Street extends losses profit worry and Alcoa

NEW YORK (Reuters) - Stocks extended losses in early trade on Monday as investors worried that the start of the fourth-quarter earnings reporting season may indicate further worsening of the recession.

* Alcoa Inc was one of the top drags on the Dow after Deutsche Bank recommended a "sell" on the stock, sending shares down 6.3 percent to $10.13. The aluminum producer is scheduled to kick off the earnings season when it posts fourth-quarter results after the bell.

* Citigroup fell nearly 9 percent to $6.15 after news the embattled U.S. bank is nearing a deal to sell a controlling stake in its Smith Barney retail brokerage to Morgan Stanley to raise cash. Morgan Stanley rose 5 percent to $20.03.

The Dow Jones industrial average <.DJI> was down 48.99 points, or 0.57 percent, at 8,550.19. The Standard & Poor's 500 Index <.SPX> was down 8.28 points, or 0.93 percent, at 882.07. The Nasdaq Composite Index <.IXIC> was down 12.29 points, or 0.78 percent, at 1,559.30.

(Editing by James Dalgleish)