Even though JPMorgan (NYSE:JPM) downgraded the consumer discretionary sector from "Overweight" to "Neutral," that didn't stop stocks like Ford (NYSE:F) from jumping, as they surpassed General Motors (NYSE:GM) in sales for the month of March. Gambling businesses like Las Vegas Sands (NYSE:LVS) also went against the grain, as they have been rising on news gambling revenue in Macau soared.
The reasoning JPMorgan had behind the downgrading of the consumer discretionary sector, which they view as a short-term event, was that it has been overall "structurally weaker" for some time. They also see economic momentum starting to slow down while the sector continues to have high valuations.
As for other sectors, they pointed out some of their favorites and least favorite stocks, with their worst ones including Valley National (NYSE:VLY), Navistar (NYSE:NAV) and Principal Financial Group (NYSE:PFG).
Stocks that found favor with JPMorgan, among a number of them, include Amgen (NASDAQ:AMGN), Gilead (NASDAQ:GILD), Aetna (NYSE:AET), Cigna (NYSE:CI), Delta Airlines (NYSE:DAL), UAL (NYSE:UAL), Medco Health Solutions (NYSE:MHS) and Life Technologies Corp (NASDAQ:LIFE).
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