* Crude down more than 4 percent
* Morgan Stanley up after beating profit estimates
* Futures down: Dow 48 pts, S&P 6.5 pts, Nasdaq 12.5 pts (Adds details, comment, updates prices)
By Abhiram Nandakumar
April 18 (Reuters) - U.S. stocks were set to open lower on Monday as crude prices slipped after a much anticipated meeting of oil producers failed to result in a deal to freeze production.
Crude was down more than 4 percent after the failed talks in Doha renewed fears of an escalating battle for market share among the major producing countries and add to the stubborn global surplus.
Shares of Chevron were down 1.8 percent in premarket trading, while Exxon shed 1.6 percent.
A rebound in oil and signs that the U.S. economy was recovering had helped stocks rally from a steep selloff at the start of the year. The S&P 500 is now up about 1 percent in 2016, after falling as much as 10.5 percent earlier in the year.
“This is definitely negative news for the energy sector, but it seems the index can still hang on there,” said Zhiwei Ren, managing director and portfolio manager at Penn Mutual Asset Management.
Ren said the losses in oil were moderate despite the collapse of the talks because bullish positions had been reduced heading into the weekend.
Adding to the dour start to the week was data that showed China’s economy grew at a slower pace than expected in the first quarter - another sign that the world’s second largest economy was still struggling.
While macroeconomic and geopolitical factors continue to weigh on markets, focus now turns to U.S. earnings reports as investors look for the impact of the global turmoil on financial markets and the slump in commodity prices on balance sheets.
Morgan Stanley jumped 2.5 percent to $26.40 after the Wall Street bank’s quarterly profit halved, but came above estimates.
“It seems that the market still rewards companies that beat the lowered expectations,” Ren said.
At 8:34 a.m. ET, Dow e-minis were down 48 points, or 0.27 percent, with 29,221 contracts changing hands. S&P 500 e-minis were down 6.5 points, or 0.31 percent, with 268,524 contracts traded. Nasdaq 100 e-minis were down 12.5 points, or 0.28 percent, on 31,040 contracts.
Hasbro rose 4.4 percent to $86 after the toymaker reported better-than-expected quarterly profit and revenue.
Expectations for the first quarter are bleak, with earnings at S&P 500 companies seen falling 7.8 percent on average and revenue expected to fall 1.6 percent, according to Thomson Reuters I/B/E/S.
IBM and Netflix are slated to post results after the market closes.
U.S. stocks closed slightly lower on Friday after a report that Apple would continue its reduced production of iPhones. (Reporting by Abhiram Nandakumar in Bengaluru; Editing by Don Sebastian)