Wall Street set to edge up after GDP data

NEW YORK (Reuters) - Wall Street was set for a slightly higher open on Friday after data showed the U.S. economy shrank less than expected in the fourth quarter but still contracted at its fastest pace in nearly 27 years.

Investors were already fretting over the health of the economy following dismal jobless claims and durable goods data on Thursday. Gross domestic product for the fourth quarter fell at a 3.8 percent annual rate, compared with a median forecast in a Reuters poll for a 5.4 percent drop, but in a bad sign for corporate profits, stocks of unsold goods rose, compared drops in recent quarters.

On the upside, widely held Dow component Exxon Mobil could provide support after its profit fell amid a steep drop in oil prices but the results topped Wall Street's expectations. Exxon was up 1.9 percent at $78.50 before the opening bell.

"(GDP) is actually better than we were expecting, quite a bit better than we were looking for, actually," said David Wyss, chief economist at Standard & Poor's in New York.

"It's good news for the market, but not the only factor that will help things. Certainly Exxon Mobil's results were good."

Highlighting the slowdown in consumer spending, the world's largest consumer products maker, Procter & Gamble Co , reported profit that missed expectations and was the latest company to cut its full-year earnings forecast, citing weaker demand. Its shares fell 3 percent at $56.45 in premarket trading.

S&P 500 futures rose 1.60 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 rose 16 points, and Nasdaq 100 futures were up 3.75 points.

(Reporting by Leah Schnurr; Additional reporting by Ryan Vlastelica; Editing by James Dalgleish)