Markets rise, look set to hit new highs

Markets were mostly higher on Wednesday.

The S&P 500 rose 0.2 percent, the STOXX Europe 600 rose 0.5 percent and the Nikkei 225 rose 0.4 percent.

Stocks rose despite a report showing that US housing starts fell 12.3 percent in June and the Federal Reserve's Beige Books showing shortages of skilled workers and rising costs of raw materials.

“Earnings reports so far have been solid and despite today’s disappointing housing starts, economic data have also been trending higher, providing support for markets,” said Quincy Krosby, chief market strategist, at Prudential Financial.

Indeed, strategists are looking for stocks to set new records.

Samuel Stovall, chief investment strategist at CFRA, said that stocks could hit new highs “by the end of the month, if not the end of the week”.