  The conduction electron density of states nearby single magnetic impurities,
as measured recently by scanning tunneling microscopy (STM), is calculated,
taking into account tunneling into conduction electron states only. The Kondo
effect induces a narrow Fano resonance in the conduction electron density of
states, while scattering off the d-level generates a weakly energy dependent
Friedel oscillation. The line shape varies with the distance between STM tip
and impurity, in qualitative agreement with experiments, but is very sensitive
to details of the band structure. For a Co impurity the experimentally observed
width and shift of the Kondo resonance are in accordance with those obtained
from a combination of band structure and strongly correlated calculations.
