All of the baby powder issues reported today by Reuters were previously disclosed as part of the talc litigation discovery, JPMorgan analyst Michael Weinstein tells investors in an intraday research note. The stock in midday trading is down 10% to $133.35 after Reuters reported that J&J was aware of trace amounts of asbestos in its talc supply as early as the 1970s. It is highly unlikely the company’s exposure to the talc issue will even come close to the $40B in lost market capitalization today, Weinstein writes. As such, he sees today’s selloff as an overreaction. The analyst admits, however, that talc does not seem to be an issue that is going to resolve quickly. Nonetheless, he believes today’s stock selloff prices in severe litigation risk that is unlikely.