* Intel shares drop after forecast disappoints
* CPI falls in December
* Indexes up: Dow 0.14 pct, S&P 0.31 pct, Nasdaq 0.43 pct (Adds quote, data)
By Chuck Mikolajczak
NEW YORK, Jan 16 (Reuters) - U.S. stocks advanced modestly on Friday, following five straight days of losses for major indexes, as market participants continued to assess the ramifications for U.S. and other markets of Switzerland's move to scrap its currency cap.
Investors attempted to interpret the impact of the move by the Swiss National Bank. The decision might be seen as foreshadowing a large stimulus move by the European Central Bank next week that would further weaken the euro, or as a safeguard against a possible Greek exit from the euro zone that could potentially destabilize the bloc.
"Most central banks have been really clear about how to telegraph their messages, particularly here in the U.S., so having a bank intentionally surprise caught everybody a little flat footed," said Dan Curtin, global investment specialist at JP Morgan Private Bank in Boston.
Shares of retail foreign exchange broker FXCM Inc, were halted, after it said it may be in breach of some regulatory capital requirements following client losses related to the Swiss move to ditch the cap on the Swiss franc's value.
Shares of Interactive Brokers, whose clients also are exposed to currency trades, were down 5.8 percent. The company said several customers suffered losses in excess of their deposit due to the sudden move in the Swiss franc.
Gain Capital, down 4 percent, said its financial position remained sound after the franc move.
Futures pared losses after data showing U.S. consumer prices recorded their biggest decline in six years in December and underlying inflation pressures were benign, which could boost the case for the Federal Reserve to delay its first interest rate increase.
Separately, U.S. manufacturing output rose modestly in December, its fourth straight month of gains, but slowed from strong gains in the prior month.
Goldman Sachs shed 0.1 percent after it reported a 7 percent drop in quarterly profit as investment banking revenue slid and an unexpected bout of market volatility in December hit its bond trading business.
The University of Michigan consumer sentiment gauge for January is due at 10:00 a.m. (1500 GMT).
The Dow Jones industrial average rose 24.98 points, or 0.14 percent, to 17,345.69, the S&P 500 gained 6.12 points, or 0.31 percent, to 1,998.79 and the Nasdaq Composite added 19.83 points, or 0.43 percent, to 4,590.65.
Intel shares slipped 0.5 percent after the chipmaker gave a disappointing forecast for revenue and gross margins for this quarter.
Wall Street was poised for its fourth negative week out of the past six. The benchmark S&P has fallen for five straight sessions and ten of the past 12 days. The index is down 4.3 percent from its last record high Dec. 29.
Advancing issues outnumbered declining ones on the NYSE by 1,652 to 1,103, for a 1.50-to-1 ratio; on the Nasdaq, 1,354 issues rose and 846 fell for a 1.60-to-1 ratio.
The benchmark S&P 500 index was posting 12 new 52-week highs and 12 new lows; the Nasdaq Composite was recording 9 new highs and 42 new lows.
Editing by Bernadette Baum