Kids & Money: Infant, Lotrimin

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Help My Niece Has a 4 Weeks Old Son, and Would like Feedback on the Following...

My 20yrs. old, niece just had a son. He's 4 wks old. She is a first time single mom and she takes very good care of him, but she has a few concerns. Please HELP!!! 1)He keeps spitting up the formula (soy) through his mouth, nose, and eyes. 2)There is blood in his stool. The doctor said the baby is probably allergic to the formula and the blood is probably from the allergy. 3)He has a diaper rash. Can any of you suggest a remedy, etc.