Some surprising news out from Wellpoint (WLP). They slashed earnings estimates from $6.41 to $6.01. Although this is not great news, the stock has over-reacted, trading down 26%. I'm adding to shares in the blog portfolio on this. The news has sparked a sell off in this sector as it shows potential for health care costs to really eat away at insurers profits. But its not like the health care industry is going away. No brainer here.
I'm also buying American Express (AXP) for the portfolio. Shares have been battered over the past six months, and this is a wonderful company top to bottom.
On the larger scale, stocks have been helped by more fed action. I'm conflicted here. Normally, I'd say they should get out of the way, and let the market react freely. But in this case, fed actions of the past decade have gotten us here, so maybe they should get us out. But who knows if they can? We'll see if this morning's gains can hold.