Stocks closed in negative territory and treasury bonds rallied hard amidst unease over Japan's nuclear situation.

Nothing has really changed on the ground in Japan; the world simply has a little more clarity into what's going on there.

JP Morgan reports earnings tomorrow morning and if they beat expectations, it could provide a boost to the markets.

Oil also sold off the highs to close under $106 a barrel.

The NFIB small business optimism survey was not great but the markets will focus on corporate earnings to set the tone for the remainder of the month of April.

If the corporate bond markets are any indicator, April may be a rally month.

Beyond April, however, interest rates will drive the markets.

The bid for cash corporate bonds remains strong and many recent new issues traded relatively well, particularly at the long end of the curve, even as stocks sold off.

Chemicals maker Monsanto hit the market with a heavily oversubscribed $300 million 5 year bond at +60 (the final price tightened some 5-10 bps or so from the initial price talk levels).

Fuel Trust issued $1.5 billion BBB-rated Ford-linked corporate paper at +200 in a deal that was heavily oversubscribed and driven primarily by reverse inquiry; the bond tightened some 20 bps in secondary trading.

In the covered bond space, Cie Financement Foncier issued $500 million 3 year FRNs (floating rate notes) at +75; FRNs have seen heavy demand from real-money investor not to mention the solid collateral pool of CFF.

Royal Bank of Canada tapped the markets selling $850 million of 5 year bonds at +73 and $900 million of 3 year FRNs at +30; the Canadian sovereign story remains very compelling for many.

Advance retail sales and business inventories numbers are out tomorrow in addition to the Fed's beige book.