* Yum shares fall on shrinkage of sales in China * Monsanto stock jumps after strong earnings, raised outlook * Sears says CEO to step down, shares rise * Futures off: Dow 20 pts, S&P 2.5 pts, Nasdaq 1 pt By Rodrigo Campos NEW YORK, Jan 8 (Reuters) - U.S. stocks were set to ticklower at the open on Tuesday as an earnings season expected toshow sluggish corporate growth gets under way. Profits in the fourth quarter are seen above the previousquarter's lackluster results, but analysts' current estimatesare down sharply from where they were in October. Quarterlyearnings are expected to grow by 2.8 percent, according toThomson Reuters data. German data showed industrial orders fell more than forecastin November due to a sharp drop in demand from abroad,reinforcing concerns that Europe's largest economy may havecontracted in the fourth quarter of 2012. "I'm surprised futures are holding up, given the relativedisappointment that German data showed, but I think all eyes areon the beginning of earnings season," said Kim Forrest, seniorequity research analyst at Fort Pitt Capital Group inPittsburgh. Monsanto Co shares rose 4 percent to $99.81 in premarkettrading after the world's largest seed company raised itsearnings outlook for fiscal 2013 and posted strong first-quarterresults. Education provider Apollo Group and Dow componentAlcoa Inc, the largest U.S. aluminum producer, round outthe start of earnings season after the closing bell. "Alcoa is not a huge bellwether," Fort Pitt Capital'sForrest said, adding investors are focused more on companies'performance than on macroeconomic factors, so "we should be kindof flat until we get some company-oriented news." S&P 500 futures were off 2.5 points and below fairvalue, a formula that evaluates pricing by taking into accountinterest rates, dividends and time to expiration on thecontract. Dow Jones industrial average futures were off20 points and Nasdaq 100 futures dropped 1 point. Shares of restaurant-chain operator Yum Brands Inc fell 4.3 percent to $65 a day after the KFC parent warned salesin China, its largest market, shrank more than expected in thefourth quarter. London-traded Vodafone shares rose almost 3 percentafter its partner in U.S. joint venture Verizon Wireless said itwould be "feasible" to buy out the British group. U.S.-tradedVodafone stock dipped 0.8 percent. Sears Holdings shares rose 2.5 percent to $44 inpremarket trading a day after the company said its chiefexecutive will step down for family health reasons. The U.S.retailer also reported a 1.8 percent decline in quarter-to-datesales at stores open at least a year. GameStop shares fell 8.1 percent to $22.75 beforethe open after it reported sales for the holiday season and cutits guidance. ConAgra Foods Inc priced a public offering of 8.1million common shares at $29.75 per share, the foodmaker said onMonday. ConAgra closed at $30.17 during regular Monday trading.