Discount retailer Family Dollar Stores Inc. (FDO) reported its fiscal second quarter results this morning, topping analyst estimates and sending the stock higher in premarket trading.

For the quarter, Family Dollar reported it earned 98 cents per share, topping analyst estimates by a penny. During the same period last year, the company earned 81 cents per share.

The calendar quarter winds down this week and quarterly reports are due from Apollo Group (APOL), CarMax (KMX), Global Payments (GPN), Krispy Kreme (KKD), Lennar (LEN) and McCormick (MKC). But analysts surveyed by Thomson Reuters have high hopes for results from fertilizer and animal feed maker Mosaic (MOS), apparel maker Phillips Van Heusen (PVH) and discount retailer Family Dollar (FDO). So here's a look at what they anticipate from these three companies.

Mosaic

During its fiscal second quarter, Cargill agreed to distribute its stake in Mosaic, and Mosaic also said it would redeem senior notes. Analysts anticipate that the Minnesota-based potash producer will report per-share earnings of $1.07, a jump of 53.3% from the same quarter of last year. Mosaic also is expected to post revenue of $2.4 billion for the three months that ended in February. That's a 35.9% rise from a year earlier.

Analyst Upgrades

• SINA (SINA) to overweight from neutral at Piper Jaffray.
• Texas Instruments (TXN), ON Semiconductor (ONNN), Xilinx (XLNX) and Valassis (VCI) to overweight from neutral at JPMorgan.
• Salesforce.com (CRM) to buy from hold at Canaccord.
• Peet's Coffee (PEET) to buy from neutral at Janney Capital.
• Invesco Mortgage (IVR) to overweight from equal weight at Barclays.
• BTU International (BTUI) to buy from hold at Wunderlich.
• Coca-Cola Femsa (KOF) to overweight from neutral at HSBC.
• Chipotle (CMG) to market perform from underperform at Morgan Keegan.

Family Dollar Stores (FDO) confirmed that it has received an unsolicited conditional proposal from Trian Group to acquire the company at a price in the range of $55 to $60 per share in cash. Family Dollar Stores overall option implied volatility of 25 is near its 26-week average of 27, according to Track Data, suggesting non-directional price movement.

Air Products (APD) withdrew its offer to purchase Airgas (ARG). Airgas overall option implied volatility of 33 is above its 12-week average of 28, according to Track Data, suggesting larger price movement.

Options Update is by Stock Specialist Paul Foster of theflyonthewall.com.

Analyst Upgrades

• Research In Motion (RIMM) to buy from sell and Gap (GPS) to hold from sell at Citigroup.
• Archer Daniels (ADM) and Airgas (ARG) to buy from hold at Jefferies.
• NCR Corp. (NCR) to conviction buy from neutral at Goldman.
• Valero Energy (VLO) to top pick from sector perform and Western Refining (WNR) to outperform from underperform at RBC Capital.
• Fred's (FRED) to overweight from neutral at JP Morgan.
• Marsh & McLennan (MMC), Willis Group (WSH) and Brown & Brown (BRO) to equal weight from underweight at Barclays.
• Host Hotels (HST) to outperform from neutral at RW Baird.
• La-Z-Boy (LZB) to strong buy from market perform at Raymond James.

Analyst Upgrades

• U.S. Steel (X) to buy from neutral and Barnes & Noble (BKS) to neutral from sell at Goldman.
• Salesforce.com (CRM) to buy from hold at Jefferies.
• Dollar Tree (DLTR) to overweight from equal weight at Barclays.
• Edison International (EIX) to hold from sell at Citigroup.
• Analog Devices (ADI) to overweight from neutral at JPMorgan.

Although the U.S. economy has added jobs in recent months, the unemployment rate remains uncomfortably high at 9.8%. The rate for December is due out on Friday and is expected to drop to 9.7%. However, no one seems to expect significant improvement until well into the new year.

Other economic data on this week's schedule include:

• Monday: ISM Manufacturing Index, construction spending and auto sales data

Analyst Upgrades

• Goldman upgraded BP (BP) to buy from neutral.
• STEC (STEC) was upgraded to buy from hold at Needham.
• MCG Capital (MCGC) was upgraded to buy from hold at BB&T.
• Corporate Office (OFC) was upgraded to market perform from underperform at FBR Capital.
• Citigroup upgraded K-Sea Transportation (KSP) and Post Properties (PPS) to hold from sell.
• BofA/Merrill upgraded Embraer (ERJ) to buy from underperform.
• Wilmington Trust (WL) was upgraded to neutral from underperform at Macquarie.
• Parkway Properties (PKY) was upgraded to hold from sell at Stifel Nicolaus.

Family Dollar Stores (FDO) closed up on Wednesday by 1.6% to $44.05. That's not far from the 52-week high of $45.10, which was hit during yesterday's session. There was a large amount of volume backing yesterday's price movement.

Now this is a pretty good chart. Like most of you, I've been looking at a lot of charts lately, and I've been seeing a high quantity of graphs that started out okay and then plunged in a downward direction, falling into a valley of sideways action. The reason is obvious, of course: The economy and market volatility has thrown everyone for a loop.

One of the most prominent quarterly reports scheduled this week, as the quarter winds down, comes from Walgreen (WAG). Analysts surveyed by Thomson Reuters are looking for the drugstore chain operator to report Tuesday that its fiscal fourth-quarter earnings were about the same as a year ago, or 45 cents per share. Note, though, that Walgreen fell short of earnings expectations in the previous two quarters.

During the three months that ended in August, Deerefield, Ill.-based Walgreen launched a social responsibility website and boosted its dividend. Revenue for that period is expected to total $16.8 billion, which is a 7.3% increase from the same period of last year. And for the full year, analysts forecast EPS of $2.12 (+4.7%) on revenue of $67.4 billion (+6.4%).

Analyst Upgrades

• Wells Fargo believes Intuitive Surgical (ISRG) da Vinci procedures remain under penetrated and that consensus estimates are too low. The firm upgraded shares to outperform from market perform and raised its valuation range to $340 to $360.
• Cantor Fitzgerald upgraded Westamerica (WABC) to buy from hold due to the company's FDIC-assisted acquisition of Sonoma Bank and what the firm sees as Westamerica's defensive nature. The firm set a $62 target on the stock.
• Oppenheimer upgraded Corning (GLW) to outperform from perform based on valuation and the belief that downward revisions have peaked. The firm has a $20 target on the stock.
• Quality Systems (QSII) was upgraded to outperform from market perform at JMP Securities.
• OpenTable (OPEN) and Windstream (WIN) were upgraded to buy from neutral at BofA/Merrill.

Analyst Upgrades

• Wunderlich upgraded Inergy (NRGY) to buy from hold on valuation after the stock sold off following the proposed merger with Inergy Holdings (NRGP). The firm raised its target for shares to $46 from $40.
• Soleil upgraded Applied Industrial (AIT) to buy from gradually accumulate following the company's better-than-expected Q4 results and raised its target for shares to $42 from $36.
• Citigroup upgraded Starwood Property (STWD) to buy from hold with a $21 price target, citing a pick-up in CRE loan sales.
• Family Dollar (FDO) was upgraded to overweight from equal weight at Barclays.
• Intercontinental Hotels (IHG) was upgraded to buy from sell at Societe Generale.
• Yucheng Technologies (YTEC) was upgraded to buy from hold at Roth Capital.

It may be good for the jittery markets that things will be rather quiet on the economic calendar this coming week following the U.S. Independence Day holiday.

Markets in the U.S. are closed Monday for the holiday. The Institute of Supply Management (ISM) is scheduled to release the results of its next service sector survey Tuesday morning. This release is expected to show no significant change from the bullish May nonmanufacturing index.