Three retailers report tomorrow: Gap, Kohl's, and Sears and of the three, Gap is the one that has been clicking. They bought in a new management team a year ago, and they appear to be successful. They had a good holiday season.
I would expect them to at least do the consensus estimate of 71 cents, and possible beat. They have revamped their Old Navy business and their core Gap stores have gotten a lot better with solicitations on social media and they have refreshed the product line as well.
Kohl's had a tough November and December, but in January they did a 13 percent comparable store sales as they cleared out a lot of merchandise. Still, I would expect cautious commentary from them as well. Their consumer has moderate income and will likely be affected by the payroll tax hike and maybe by a delay in the tax refund checks.
Sears is the weakest of the three with estimates of 98 cents. It has come down a lot in the last few months with analysts telling me that business has been sluggish. There seems to be little reinvestment in the stores customers say they're not as crisp and clean as their competitors.
—By CNBC's Bob Pisani