ANALYST UPGRADES OPINION ON U.S. BANK STOCKS
Analyst George Salem of Donaldson,
Lufkin and Jenrette Securities Corp upgraded his recommendation
on most U.S. money center banks following comments from a
Japanese official that Japan plans to provide developing
nations with up to 30 billion dlrs in loans.
    Salem said he changed his trading recommendation from
negative to a buy. He is still neutral to negative long term.
But the Japanese assistance is a psychological boost for the
stocks. He said his report focused on Citicorp <CCI> , J.P.
Morgan and Co <JPM>, Chase Manhattan Corp <CMB> and Bankers
Trust Co <BT>.
    Yesterday, a U.S. state department spokesman said the loans
will help the countries import goods needed to increase
domestic production. The countries could then boost exports and
earn foreign exchange, making it easier to repay loans to U.S.
banks.
    "This is a group of stocks that was starving for good
news," Salem said. "I"m not declaring an end to the debt
crisis, or that problems of all the countries are now under
control."
    Stocks in the money center bank group were generally higher
today, adding to yesterday's gains.
 Reuter
