Another great suggestion from Carrie. Caps for sale, by Esphyr Slobodkina, is a classic tale in the traditional style that every child should get to enjoy. I've seen and heard of Caps for Sale being performed in a variety of ways-flannel board, short drama, etc. There is a lot of opportunity for interaction here.
A peddler is walking with the caps he sells piled upon his head-brown, blue, and red piled high. He is hungry and tired so he decides to rest under a tree. When he awakens all his caps are gone. He looks everywhere around him, but doesn't see his caps.
Finally the peddler looks up into the tree and sees a bunch of monkeys each wearing one of his caps. He shakes his finger at the monkeys, but they only imitate him. His shakes his fists at them; they shake their fists at him.
He throws his own cap to the ground in disgust. That works. All the caps fall around him. Monkeys are known mimickers, after all. The peddler piles the caps back upon his head and goes on his way.
Even if you have just a couple of kids you're reading to, this is a great story to act out. Grab a few caps out of the coat closet, pretend to be asleep, and have your children do whatever you do. It's a rollicking time.