Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon. Today is Thursday, May 28th, and I'm your host, Kim Kahn.

Our top story so far, GDP was revised lower for Q1 to a 1.6% annual rate versus 2% in the initial estimate and 0.5% in the

prior quarter. The downward revision primarily reflected weaker investment and consumer spending.

Overall, GDP was supported by increases in government spending and exports, along with faster

investment growth, partly offset by slower consumer spending.

David Lout of Currick's financial said the stability in economic growth suggests that interest rates at their current level are justified. Meanwhile, the April core PCE price index showed inflation

remains well above the Fed's 2% target. The index rose 0.2% for the month, a touch below the 0.3% estimate, but increased

3.3% annually, in line with the consensus, and slightly hotter than March's 3.2% pace.

Consumers continue to spend despite persistent inflation, though income growth was flat.

Economist Joseph Broussela lists that Americans are so upset right now because of three

straight monthly declines in disposable income growth and weakness in that same measure over the past year.

Real wages are falling as disposable income declines in households are drawing down savings, he said.

With rising inflation not having yet peat, this will get worse before it gets better,

and real spending is likely to decline in May.

Among active stocks, drone-related stocks are rallying

after the Wall Street Journal reported

that the Trump administration is considering funding agreements

with several companies as part of a broader push

to expand domestic production

and reduce costs for the increasingly important

defense technology. Unusual machines is up 50% while Redcat Holdings, Aerospace Security

...