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 &lt;CCI> J.P. Morgan and Co &lt;JPM> Chase Manhattan Corp &lt;CMB> and Bankers Trust Co &lt;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. Im 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 yesterdays gains.
ANALYST UPGRADES OPINION ON U.S. BANK STOCKS