Many retailers have already released holiday sales. While most weren't terrible, they weren't stellar either. A survey conducted by Thomson Reuters estimates the 78 retailers it follows will report fourth-quarter same-store sales that will grow an average 1.7 percent year-over-year. For the fiscal fourth quarter of 2011, retailers posted a 2.8 percent gain year-over-year.
(Read more: Strike Three! The American Consumer Is Out)
But sales are only part of the picture. Since management commentary has suggested sales were sluggish after Black Friday until Christmas week, investors have been anxious to learn about the resulting profitability, and how promotions have impacted margins.
Wall Street was bracing for a bad quarter from Wal-Mart after reports of leaked emails between executives discussing a "disastrous" February for U.S. Sales. The world's largest retailer reported fourth-quarter earnings that weren't great, but it wasn't "disastrous" either.
Some analysts think low expectations are baked in for the retailers and could provide some protection against shares selling off in the wake of earnings reports. That was the case with Wal-Mart. The company's comments and its results showed consumers are facing economic pressures and Wal-Mart's guidance reflects this. (Read more: Wal-Mart Tops Estimates, but Guidance Is Weak)
Right now, the big question is: will all retailers will provide similar commentary?
Discounters
Discounters Target, Dollar Tree and TJX all report fourth-quarter earnings on Wednesday. The market will want to know if each management team expects its consumers to face the same economic pressures Wal-Mart detailed in its earnings release.
During the financial crisis, dollar stores like Dollar Tree, did take some market share from behemoth Wal-Mart. While some higher-income consumers did trade down and shop at discounters during the financial crisis, most don't expect that to occur in the current environment of higher payroll taxes and increasing gas prices. But bullish investors will want reassurance that the core consumer is still buying.
Off-price retailer TJX has reported some of the strongest, and most consistent same-store sales of the past year. If TJX issues guidance that deviates at all, shares would likely take a hit.