The Dow surged passed the 10,000 level Wednesday, while Canadian markets were held back by lower oil and gold shares as falling oil prices had a contrarian impact on North American exchanges.

At close, the S&P/TSX had lost 27.18 points or 0.31% to 8791 while the TSX Venture exchange fell 20.53 points or 1.24%. The Dow average climbed 113.55 or 1.24% to 10002.03, bringing its gains in the past two days to 2.6%. The Standard & Poor’s 500 Index added 14.31, or 1.29%, to 1125.40. For both indices, it was the best two-day advance since May 12, 2003. The Nasdaq gained 41.2 points or 2.14% to 1969.99.

The Canadian dollar gained 0.06 of a cent to US81.59¢.

On Bay Street, energy shares fell 2.55% as crude oil for December delivery reversed a 0.9%, falling 4.8% to close at US$52.50 a barrel in New York, the biggest decline since June 2. An Energy Department report showed that U.S. stockpiles increased more than expected.

The TSX gold sub-index fell 2.31% as gold prices eased 40¢.

The loses in oil and gold shares offset gains in financial stocks (up 0.4%), technology (1.14%) and industrials (0.94%). Nortel Networks Corp. was Canada’s most active stock once again, but its loss — 15¢ or 3.6% to $4.02 — held back the tech sector. Other heavy losers were Bombardier Inc. B shares, down 2¢ or 0.75% to $2.63 and Suncor Energy, which fell $1.59 or 3.66% to $41.90.

All the Big Banks were up, except for CIBC, which fell 10¢ or 0.14% to $71.90.

Volume on the TSX was 275 million, while about 75 million shares traded hands on the Venture Exchange.

On Wall Street, investors celebrated the drop in oil prices, but they were also encouraged by some good economic news.

Orders to U.S. factories for durable goods edged up 0.2% in September, following a 0.6% decline in August. While that number is below expectations, orders actually were up a stronger 1.7% if the volatile transportation sector is excluded. Investors also applauded the latest U.S. housing data – new home sales rose 3.5% last month to a seasonally adjusted annual rate of 1.21 million units, the third highest level on record. The increase took economists by surprise. They had been expecting a decline.

Shares in Procter & Gamble fell $1.43 or 2.7% to US$51.78 despite the fact the consumer products giant posted a 14% increase in quarterly earnings.

Falling oil prices helped airline stocks; shares in Delta Airlines, for example, jumped 31¢ or 6.7% to US$4.94.

Overall, more than two stocks rose for every one that dropped on the New York Stock Exchange. Some 1.7 billion shares changed hands on the Big Board, marking the busiest trading this month and a 31% increase on the three-month daily average.