Recent economic data shows PCE inflation came in softer than expected while Q2 GDP exceeded expectations. Markets are now focused on the upcoming Friday employment report. Three stocks were added to the Zacks Rank #5 (Strong Sell) list due to downward earnings revisions.

Major M&A activity includes Nestlé selling Blue Bottle Coffee to Centurium Capital, Netflix acquiring Ben Affleck's AI filmmaking startup InterPositive, and Six Flags selling seven amusement parks to EPR Properties for $331 million. Eddie Bauer canceled its bankruptcy auction after receiving no bids, while Cumulus Media filed for Chapter 11 bankruptcy with a restructuring plan to eliminate $697 million in debt.

As US stocks start 2026 with positive momentum and the S&P 500 near record highs above 6,900 points, three previously underperforming stocks show signs of recovery. Flowco Holdings is forming a rounding pattern with potential upside to $26, Elevance Health is testing key resistance at $360 with a path to $450, and Matador Resources shows strong fundamentals with a 50% fair value gap and potential recovery above $53.

The Schall Law Firm is investigating claims against Flowco Holdings (FLOC) for potential violations of securities laws. The investigation focuses on whether the company issued false or misleading statements regarding its financial results for Q1 2025, which led to a significant drop in the stock price.