Goldman Sachs recommends shorting U.S. stocks NEW YORK (Reuters) - 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