NEW YORK Goldman Sachs recommended shorting the S&P 500 index with a target level of 1,285 on Thursday, saying the latest U.S. data suggests that weakness in the economy has extended into June.
"This morning, the Philly Fed print of -16.6, down sequentially and worse than expected, provides further evidence that weakness has extended into June," Goldman said in a note to clients. "We now think, with incremental U.S. monetary policy on hold, the market will need to confront a deteriorating growth picture near term.
The Philadelphia Federal Reserve Bank reported that factory activity in the U.S. mid-Atlantic region contracted for a second straight month in June, with its business activity index at a reading of minus 16.6.
The S&P 500 was trading down 1.6 percent at 1,333.70 in afternoon trading.
(Reporting By Edward Krudy)