Corporate earnings offered clues on the state of manufacturing and supply chains, as businesses continue to adjust to a changing policy landscape. General Motors on Tuesday cut its estimated 2025 tariff costs by $500 million while also updating investors on plans to stem EV-related losses, as chip shortages and the expiration of a federal tax credit for buyers shake up the car market. In a sign that supply-chain snags affecting new aircraft and parts might be easing, GE Aerospace and RTX both raised full-year earnings forecasts after booking increases in engine sales. Overall, companies in the S&P 500 are on track to register a ninth straight quarter of earnings growth at 8.5% year-over-year, according to a FactSet analysis of reported and estimated results as of Oct. 17. Alphabet, Apple, Meta and Microsoft are scheduled to report earnings next week.

Shifting trade policies and geopolitical risk have ignited a realignment in global supply chains impacting a wide array of industries. Ongoing talks between the U.S. and trade partners, including China, might offer some clarity on the future of trade. Meanwhile, at a White House meeting on Monday, the U.S. and Australia signed a deal aimed at increasing supplies of critical minerals used in a wide array of products.

Understanding how the manufacturing outlook is evolving will be crucial as investors sort out potential winning and losing regions and industries. A new episode of PGIM’s The Outthinking Investor podcast explores opportunities and challenges that could emerge from a manufacturing renaissance.