Wall Street starts February strong on factory data, Greece
(Reuters) - Stocks extended January's rally on Wednesday after upbeat global manufacturing data boosted sentiment and as Greece neared a long-delayed deal with private creditors.


The recent run of better-than-expected economic data around the world, though still not suggesting a booming expansion, has helped lift equity markets as investors move away from a worst-case scenario for the global economy.


An index of the U.S. manufacturing sector rose in January to its highest level since June, an industry group said, while China's factory sector expanded slightly, confounding expectations for a contraction. Germany recorded its first rise in manufacturing output in four months.


"The numbers aren't horrible, the trend continues that the news is OK," said Brian Battle, vice president of trading at Performance Trust Capital Partners in Chicago. "I think we're going to grind higher."


Optimism spurred gains in industrials, financials and basic materials, which rose between 1.1 percent and 1.7 percent. Caterpillar Inc (CAT.N), a company heavily exposed to global industry, rose 1.3 percent to $110.52 and was the biggest boost to the Dow industrials.


Trading volume was higher than it has been in recent days. Volume of the NYSE, Amex, and Nasdaq was 7.80 billion compared to its 20-day moving average of 6.97 billion. The wider participation comes after four down days when market movements were minimal and volume generally light.