US stock futures gained on Friday, after a government report showed that US trade gap narrowed to six year low in January.

At 8:36 am ET, Standard & Poor's 500 Index futures dropped 0.70 points to 698.70. Dow Jones Industrial Average futures decreased 20 points to 6894. Nasdaq Composite Index futures slipped 4.25 points to 1120.75.

A government report released on Friday showed U.S. Jan. trade gap narrows 9.7% to $36.0 billion. Economists were expecting a reading of $38 billion.

Time Warner Inc.  (NYSE: TWX) on Thursday named Google Inc. (NASDAQ: GOOG) Senior Vice President Tim Armstrong as the new chairman and chief executive of struggling internet unit AOL.

Meanwhile, Fitch Ratings downgraded the issuer default rating of Berkshire Hathaway Inc. (NYSE:BRK-A) to AA+ from AA, with a negative outlook.

Late on Thursday, specialty retailer Aeropostale (NYSE: ARO) announced that its fourth-quarter net income rose to $68.2 million, or $1.01 a share, from $64.7 million, or 95 cents a share, in the year ago quarter. Revenue climbed to $690 million from $591.3 million.

Pacific Sunwear of California Inc. (NASDAQ: PSUN) said that it slipped to a fourth loss of $27.1 million, or 42 cents a share, compared with a net income of $5.2 million, or 28 cents a share, in the corresponding period last year. Revenue decreased to $351.7 million from $384.3 million.

On the front of economic data, University of Michigan/Reuters consumer sentiment index is scheduled for release at 10:00 PM ET.
 
European stocks advanced in afternoon trade. At 12:02 pm London time, the U.K. FTSE rose 99.50 points or 2.69% to 3,800. The German DAX and French CAC increased 1.88% and 2.15% respectively.

Asian stocks finished with strong gains. The Nikkei 225 rallied 371.03 points or 5.15% to 7,569.28. The Hang Seng index of Hong Kong jumped 524.27 points or 4.37% to 12,525.80.

NYMEX crude oil for April delivery climbed as much as 62 cents, or 1.3%, to $47.64 a barrel.
 
Disclosure: Author does not own any of the stocks discussed here.