Investors are about to turn their attention to corporate America as the market is getting ready for a deluge of fourth quarter earnings. However, we have seen the price of crude oil plunge and the Dollar heat up. This is leaving investors uncertain of what they will see.

During the fourth quarter of 2014 crude oil tanked over 40 percent. The U.S. Dollar Index, during the same period was up five percent. This is making investors a tad nervous as they do not know what to expect as earnings are released. Nobody is sure of the consequences of the dramatic fall in oil will have on corporate America.

Did Corporations Hedge Correctly?

Corporations with high exposure to the dollar and oil tend to employ complex strategies to hedge their exposure in these markets. It is an unknown if these strategies have worked and if they worked or failed, the extent of the success or failure of those moves. There is also a bigger unknown with gasoline prices. Have those fallen enough to have a big impact on retail spending? Also, how much are oil companies reducing big ticket purchases on equipment thanks to the price of oil?

See the Conundrum? We simply do not know as so much is up in the air. It is already a tough job to predict earnings, but with so much in play, globally, the job of analysts, like myself, has become even more challenging. In all likelihood, we should expect more earnings misses but at the same time get some bigger upside moves.

First week of Corporate Earnings Starts Now

Here we go, let’s get started with what to expect this week as the major U.S. banks are set to lead us off. Bank of America, Wells Fargo, JP Morgan, Goldman Sachs and Citigroup. Outside banking another big name to report today is Alcoa (AA: NYSE)  and on Thursday the technology and chip giant Intel (INTC: Nasdaq) will report earnings.

The biggest question investors have is how American companies will fare overseas thanks to the strengthening dollar. As the dollar gains value, the cost of U.S. exports goes up making American products expensive.

The U.S. Consumer. Are they Spending Dollars?

Later this earnings season, we start hearing from retailers. The big mystery is if consumers actually spent more money thanks to the fall in gasoline prices. With the savings they are getting from the pump going to translate to them spending money on a new TV? I do not think so. I think Americans have been changing their spending habits and counting their pennies.

The bottom line, there are too many questions to get a clear picture on the up and coming earnings season. Will American consumer spend? Have they spent? Investors and analysts are watching numbers very carefully for hints.