Wall Street set for higher open on data relief

NEW YORK (Reuters) - Stocks were set to open slightly higher on Friday as news that employers cut payrolls in December by less than expected tempered concerns about the underlying labor picture.

Although the government's December payrolls report provided investors some reassurance, the unemployment rate climbed to its highest in nearly 16 years, indicating the economy remains in the throes of a recession.

The data "should be decent for the market. We were waiting for some kind of good news. This is bad, but it isn't as bad as people were anticipating," said Anthony Conroy, head trader at BNY ConvergEx, an affiliate of the Bank of New York in New York.

S&P 500 futures rose 3.60 points, and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures climbed 31 points while Nasdaq 100 futures gained 4.50 points.

Stocks to watch include Chevron Corp , which forecast fourth-quarter earnings to be significantly lower.

Chevron, a Dow component and the second-largest U.S. oil and gas company, cited in its outlook the impact of lower energy prices on exploration and production.

Chevron shares were down nearly 1 percent at $73.51 before the bell.

Responding to recession's grip on the economy, President-elect Barack Obama is pushing for a new stimulus plan set to include tax cuts and major public works spending that could total nearly $800 billion.

(Additional reporting by Ryan Vlastelica; Editing by James Dalgleish)