There are stainless Damascus knives out there. The difficulty that goes into making Damascus out of stainless alloys, though poses some significant challenges. I think most guys making a knife out of stainless Damascus are buying bar stock and then grinding from there. It's pretty expensive as far as materials go. I won a bar of some good stuff at a show, but it's sitting safely on a shelf until I'm more confident that I won't totally screw it up...
There are some beautiful patterns to be had out there. Not sure if anyone here is using it, though. Good luck in the search.
Jeremy