1. Is Facebook F’d?

Shares of Meta plunged 23% yesterday as investors and analysts absorbed the company’s third-quarter earnings miss and a weak fourth-quarter outlook. Meta shares traded under $100 at beginning of trade, the lowest price since 2016. The parent company of Facebook reported quarterly revenue of $27.7 billion, a decline of more than 4% year-over-year. Its profit plummeted 52% to $4.4 billion. CEO Mark Zuckerberg reiterated his commitment to spending billions of dollars developing the metaverse.

2. US market up

The Dow Jones Industrial Average rose yesterday after new data showed the economy grew faster than expected and hinted at waning inflation.

U.S. GDP increased at a 2.6% annualized pace for the period, against the Dow Jones estimate for 2.3% growth. The report, the first quarter of positive growth for 2022, eased investors’ concerns about a recession. The GDP report provided at least some good news on inflation. That offered hope for market observers looking for data indicating inflation was coming down, which could lead the Fed to ease rate hikes after the November meeting.

3. Aussie market to fall

Our futures predict a 10-point fall at the open for the S&P/ASX 200 with the S&P 500 and Nasdaq down before the close of trade in New York, despite the Dow being in positive territory. The Oz dollar was down to 64.6 US cents after breaking 65.2 US cents yesterday, which is a preview of what will happen when US interest rate rises ease up and then stop.

4. Super to fund first home purchases

Peter Dutton has pledged to stick with Scott Morrison’s policy of allowing first home buyers to buy a house using their super, arguing it is a better use of retirement savings for housing than Labor’s budget plan to encourage super funds and other institutional investors to fund one million new homes.

Mr Dutton said he would extend the option to women who separate later in life, who had “very few housing options and those who are increasingly left homeless”. He said the Labor plan, which aims to build the homes from 2024 to 2029, was unrealistic and “Kevin Rudd-esque” in nature.

5. Cup rate rise a certainty

More than three million households with a mortgage are set to be losers on Melbourne Cup day, with leading economists predicting inflation data will force the Reserve Bank to deliver a double rate hike and increase the risk of a recession next year. Westpac chief economist Bill Evans became the first big bank economist to break from the consensus and he forecast the RBA board would lift the cash rate from 2.6% to 3.1% when it meets next Tuesday.