North American equities are climbing on Wednesday following a commodity rally and optimistic U.S. economic data. The U.S. dollar is lower but off its session lows and  U.S. two-year yields are down despite a looming auction.Toronto's S&P/TSX composite index is up 224 points to 13523, the Dow Jones industrial average is up 76 points to 11489, the S&P 500 is up eight points to 1279 and the Nasdaq is up 16 points to 2378.
"Equity markets on both sides of the border have been climbing today, with U.S. markets apparently responding to a durable goods report that handily beat expectations, while Canadian markets appear to be responding to advances in commodity prices and bank earnings," said Colin Cieszynski, market analyst at CMC Markets Canada.
The U.S. dollar staged a modest rebound after economic data showing consumers were buying more long-lasting goods. Order for durable goods excluding transportation increased 0.7% in July despite forecasts for a 0.7% decline. Non-defence capital goods excluding aircraft rose 2.6% following a 1.3% rise in the previous month.
"The sector's relatively stable development is among the best arguments for the expectation that the U.S. may be spared a deep recession," wrote economist Bernd Weidensteiner from Commerzbank.
The Canadian dollar is up 0.0001 to 0.9540 against the U.S. dollar (1.0483 USD/CAD) and up 0.20 to 104.75 against the yen.
The U.S. dollar is up 0.21 to 109.81 against the yen and the Dollar Index is down 0.067 to 77.184.
The euro is up 0.0029 to 1.4683 against the U.S. dollar, up 0.0027 to 1.5392 against the Canadian dollar, up 0.0051 to 0.8016 against the pound sterling and is higher by 0.61 to 161.23 against the yen.
The pound sterling is down 0.0083 to 1.8318 against the U.S. dollar and down 0.0091 to 1.9203 against the Canadian dollar.
The U.S. National Hurricane Center downgraded Gustav to a tropical storm, but its forecasts predict it will regain strength and grow into a major hurricane in the coming days. WTI crude oil is up $2.02 to $118.29.
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