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The future investment stars are already with us. The NYSE Financial Future Challenge, operated by the NYSE Foundation, By Kids for Kids, K12 Inc. and the United Investors Association, is in full swing, with five finalists just identified. To reach this level, the participants had to develop a new product, idea or process that would "excite, educate and motivate their peers" to become interested in the financial marketplace. The eventual winner lurks within this subset and will receive a $2,500 prize -- a great way to get that portfolio started. And, he or she will be feted at a closing bell ceremony at the NYSE (NYX) on January 11, 2010.

The finalists presented a variety of ideas which are sure to generate some buzz. Kelsey Foss, a 12-year-old from Mountainville, NY, proposed a new television show, "Stock Market Tycoon Idol," which would harness the popularity of reality TV while amping up the content. The program would involve the journeys of 10 kids as they seek to make money or lose it, with the possibility of becoming virtual millionaires along the way. The show would be set at a mock NYSE studio on Wall Street, and exports would be brought out to mentor the contestants. The reality TV reach would help engage a younger audience.

U.S. stock futures climbed on Wednesday morning, ahead of the decision by the Federal Reserve on interest-rate and monetary policy. This afternoon, the Fed will give its outlook on the economy and the corresponding policy it's taking. It is widely believed the Fed will not raise rates. Meanwhile, more earnings and economic data are on tap.

Unlike this morning, traders appeared more cautious Tuesday, as the Fed began its two-day policy meeting. Stocks ended mixed and fairly unchanged following news that Warren Buffett's Berkshire Hathaway (NYSE: BRK.B) has decided to buy Burlington Northern Santa Fe (NYSE: BNI) in a deal worth $44 billion and as Johnson & Johnson (NYSE: JNJ) announced a 6-7% workforce reduction.

Kimberly-Clark Corporation (NYSE: KMB), a consumer products entity whose colleagues include Procter & Gamble (NYSE: PG) and Johnson & Johnson (NYSE: JNJ), is up today on third-quarter results. At the time of this writing, my screen was showing shares of Kimberly-Clark higher by a little under 6%.

According to the corporate press release, sales declined 1.7%. Not a great start, but Kimberly-Clark highlighted a better metric: organic sales increased 3%, helped along by price increases. Luckily, sales volume didn't fare too badly; they were essentially flat.

Since the stock market bottomed in March of this year, it has been firing on all cylinders -- except for those in the auto industry who manufacture the most cylinders of course. This year has not been kind to them.

For months, many have been surprised at the rapid rise, given the level of unemployment. During this same period, Wall Streeters have been dancing up and down, looking forward to more bonuses.

As the number of unemployed has climbed and the period of same has lengthened, many have wondered how business could be improving during a time when the consumer (those still left) has transformed from spender to saver.

Here are some highlights from last week's earnings coverage from BloggingStocks:

• Abbott Laboratories (NYSE: ABT) higher Q3 earnings topped expectations but revenue was in line.
• Advanced Micro Devices Inc. (NYSE: AMD) posted better-than-expected Q3 results, but shares sold off.
• Allegheny Technologies Inc. (NYSE: ATI) was downgraded on concerns about its Q4 guidance.
• Bank of America Corp. (NYSE: BAC) shares fell after it posted a deeper-than-expected quarterly loss.
• Citigroup Inc. (NYSE: C) fell victim to profit taking despite reporting better-than-expected earnings.
• CSX Corp. (NYSE: CSX) better-than-expected Q3 earnings sent shares higher, despite a decline in revenue.

Today's earnings were deemed a disappointment despite some bottom-line comfort here. A weaker University of Michigan Consumer Survey report kept the DJIA muted, and whether we'd close above or under the 10,000 mark was something that wasn't known until the final hour of trading.

Here were today's unofficial closing bell levels:

Dow 9,996.21 -66.73 (-0.66%)
S&P 500 1,087.71 -8.85 (-0.81%)
Nasdaq 2,156.80 -16.49 (-0.76%)

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Johnson & Johnson (NYSE: JNJ) reported its third quarter figures this morning, and while the company managed to post better than expected earnings, its revenues were lower than analysts had expected.

Going into this morning's earnings report analysts had estimated J&J would earn $1.13 per share in the third quarter. The company was able to put up better than expected earnings results, saying it earned $1.20 per share in the quarter. But revenues disappointed. Analysts had forecast the company's revenues would be $15.22 billion in the quarter, but actual revenues were below estimates at $15.08 billion.

U.S. stock futures changed direction Tuesday morning after trading higher earlier. Lately, stock futures pointed toward a mixed to flat open, although if the trend continues and following the weak performance in European market , they may turn negative altogether ahead of a slew of corporate earnings. [[Update 8:20 a.m.: stock futures continued to waver, recently turning slightly positive.]]

On Monday, blue chip stocks closed at the high for the year on energy and financial stocks. The tech-heavy Nasdaq, however, closed slightly lower. But we're just about to get the first big wave of earnings this week with Johnson & Johnson (NYSE: JNJ) being the first big company reporting for the week this morning and Intel (NASDAQ: INTC) reporting after the close.

Johnson & Johnson (NYSE: JNJ), the New Jersey-based health care giant, is scheduled to hold an analyst meeting to discuss its third quarter 2009 financial results Tuesday at 8:30 AM ET, hosted by CFO Dominic Caruso and others. You can catch the live broadcast of the meeting on the company's website.

During the three months that ended in September, Johnson & Johnson completed a biotech acquistion and announced a collaboration to combat the flu. Analysts surveyed by Thomson Reuters expect this dividend-paying company to report that net income fell three cents per share from a year ago to $1.13. Revenue for the period is expected to be 4.6% lower to $15.2 billion.

Johnson & Johnson (NYSE: JNJ) closed at $61.74. JNJ is scheduled to report Q3 EPS and host an analyst meeting on October 13. JNJ October option implied volatility is at 19, November is at 17; below its 26-week average of 23, according to Track Data, suggesting decreasing price movement.

Intel (NYSE: INTC) closed at $20.17. INTC is expected to report Q3 EPS on October 13. INTC October option implied volatility is at 47, November is at 34; verses its 26-week average of 37, according to Track Data, suggesting decreasing price movement after EPS.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

One of my wonderful friends, Ms. P, asked me for some guidance on how she might allocate $50,000 currently earning peanuts in a money market account. Though she is decades from becoming a grandmother, after a brief discussion about her financial parameters, it became clear to me that she was looking for a "granny fund."

In reality, my recommendations would be suitable, and perhaps desirable, for many passive investors as well.

The $50,000 is a portion of money Ms. P has set aside to purchase a home, which might happen in six months, but could also be pushed out further, depending on the economy and her situation. Basically, she wants to cover all her bases because she might need the money at any time and does not want to be caught short, while at the same time she would like to generate some revenue without taking any big risks.

Stocks are expected to open modestly higher on Wall Street after a losing week last week. On Friday, stocks fell for the third straight day after reports on new-home sales and durable goods proved weaker than expected, leading investors to believe the economy has not yet emerged from the recession.

Stocks to watch today include pharmaceutical giant Johnson & Johnson (NYSE: JNJ), which agreed Monday to buy an 18% stake in European drug maker Crucell (NASDAQ: CRXL) for 301.8 million euros ($440 million), as part of a deal to develop flu vaccines.

I'm reiterating my Buy rating for Johnson & Johnson (NYSE: JNJ), first recommended on May 20, 2009 at a price of $55.87.

The value proposition with Johnson & Johnson 'isn't rocket science', as they say, even though the business model does involve a considerable amount of science.

Medtronic (NYSE: MDT), a manufacturer of a whole host of medical devices involved with the management of diabetes and cardiovascular disease, released its Q1 data on Tuesday. Revenues increased 6%, and adjusted earnings per share came in at 79 cents (some of the adjustments were related to restructuring and litigation issues).

The company was able to grow the adjusted-per-share bottom line by 10%. In addition, according to Reuters, Medtronic beat estimates by a penny. Shareholders should keep in mind, however, that the quarter benefited from an extra week.

One of the complaints we often hear is that the private insurance companies are gouging customers, second guessing doctors, and cutting corners at every turn to increase profit margins. A great deal of this is true and I would not debate that this dilutes the quality of health care in the United States.

Is the corollary that the government intends to run a health care program that does not make a profit?

That is a very probable outcome. If that is the case then how is it possible that the government will be able to fund something that is a money loser from the get go?