Markets Fizzle Amid Dim Outlook

Stocks were hemmed in Monday as oil prices rebounded and investors remained on edge about the wider economy, shying from the riskiest market sectors.

After a roaring gain last week fueled by buying in the financial sector, the market's tone Monday was muted. Investors focused on developments affecting individual companies but were wary of betting that the broader market is due for a sustained run-up.

"We could probably go a few more weeks like this before we get a true round of capitulation in August," said strategist Steven Charest, of the New York asset-management firm Divine Capital Markets, referring to ...