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Futures higher after US data

U.S. stock indexes futures traded higher Friday after better-than-expected retail sales.

June retail sales rose 0.6 percent last month, above expectations for a 0.1 percent rise. Ex-autos, gasoline, building materials and food services, retail sales rose 0.5 percent in June, Reuters reported.

The consumer price index rose 0.2 percent in June, after a similar gain in May, for a year-over-year rise of 1.0 percent, Reuters reported.

Industrial production increased a more-than-expected 0.6 percent in June for the strongest gain in nearly a year, after an upwardly revised 0.3 percent decline in May, the news wire said.

Treasury yields edged off session lows to trade higher, with the 2-year yield near 0.70 percent and the 10-year yield around 1.58 percent as of 9:16 a.m. ET.

The U.S. dollar index traded slightly higher, with the euro near $1.110 and the yen near 105.9 yen versus the greenback.

Oil traded about 1 percent higher above $46 a barrel.

European shares traded lower following a terror attack in France that killed at least 84 people. Late on Thursday, a man driving a truck mowed down crowds of people in Nice watching a fireworks display to celebrate Bastille Day. French President Francois Hollande says the attack was of a "terrorist nature" and has extended France's "state of emergency" for three months.

The U.S. State Department has confirmed two U.S. citizens were killed in the attack.

The benchmark French CAC 40 index traded down 0.7 percent on Friday morning, slightly underperforming the pan-European STOXX 600, which fell by 0.5 percent.

European indexes

European Markets: FTSE, GDAXI, FCHI, IBEX

"Of course, everything today in Europe will be of secondary importance to last night's terror incident in Nice. And the related economic concerns are of lesser relevance to the human costs," Emily Nicol, economist at Daiwa Capital Markets, said in a note on Friday.

"Indeed, with the French economy having proved to be relatively resilient to the previous Bataclan incident, the economic consequences need not be marked, although demand in the French services sector, not least the tourism sector — the world's biggest — might be adversely affected over the near term," she added.

Overnight, China posted second-quarter gross domestic product (GDP) growth of 6.7 percent on the year, beating estimates for 6.6 percent by economists polled by Reuters and matching growth in the first quarter. China's benchmark Shanghai Composite index responded somewhat mutedly and closed flat on the day, posting a weekly gain of around 2.2 percent.

Citigroup, Wells Fargo earnings

In the U.S., earnings season was in full swing, with Citigroup, US Bancorp and Wells Fargo were among those scheduled to post second-quarter results on Friday. On Thursday, JPMorgan Chase reported earnings that easily beat expectations, while BlackRock's were in line with forecasts.

Citi reported earnings that beat on both the top and bottom line and shares were higher in pre-market trade.

Wells Fargo reported earnings in-line with estimates on revenue a touch below expectations. Shares were slightly lower in pre-market trade.

Bull vs. bear on financials

Stocks ended Thursday with new highs in both the and the Dow Jones industrial average. The Dow was up 0.7 percent at 18,506 and the S&P closed at 2,163, up a half percent. If the S&P 500 closes at a new high on Friday, it will be the first full week of new highs for the index since March 1998, according to Standard & Poor's.

Other data due for release Friday include the University of Michigan consumer sentiment survey for July and May business inventories data.

In corporate news, German chemical and drug company, Bayer, had bumped its bid offer to $125 per share for Monsanto. The seed giant is also looking at purchasing BASF's agro-chemicals unit, according to media reports.

London-listed shares of BP traded 0.9 percent lower on Friday after the company agreed to a new $5.2 billion charge relating to the 2010 Gulf of Mexico spill. This brings the total cost of the incident for the company to around $61.6 billion.

—With contribution from CNBC's Patti Domm, Arjun Kharpal, Fred Imbert and Kate Rooney.