J.P. Morgan Securities cut its 2011 S&P 500 index year-end target to 1350 from 1475, to reflect the loss of 100 points in the past two weeks.

However, JP Morgan did not rule out a December rally owing to constructive U.S. economic data.

From in.finance.yahoo.com:

JP Morgan’s chief U.S. equity strategist Thomas Lee is still upbeat on U.S. equities on improving consumer spending, declining jobless claims, easing inflationary pressures and a stabilizing housing market.

“Equities remain undervalued relative to other risky assets,” Lee wrote. Earlier this month he forecast a December rally on the back of a still expanding economy.

U.S. stocks, which recently took a severe battering on negative investor sentiment, saw their sixth straight day of losses on Wednesday on mounting concerns over the European debt crisis, coupled with weak Chinese factory data.

Lee said low cost of U.S. corporate funding and corporates buying in bulk were positive signs despite present disappointing market trends.