Investors Are Buzzing About These 5 Morning Movers

Gap Inc (NYSE:GPS) shares are almost 9% in the red after the fashion retailer reported disappointing March sales results. For the month, Gap Inc (NYSE:GPS) had net sales of $1.43 billion versus the net sales of $1.53 billion that it reported for March of 2015. The weak results translate to a roughly 6% decline in comparable sales results. Demand also appears to be weak, with Gap reporting that its inventory entering April was higher than expected. The higher inventories could lead to lower-than-expected gross margins when Gap announces its first quarter results in mid-May. The number of elite funds holding shares of the fashion retailer fell by 50% to 17 at the end of the fourth quarter. Cliff Asness’ AQR Capital Management owned slightly over 2.00 million Gap shares at the end of 2015.

According to the S&P Dow Jones Indices, Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) will officially replace Tenet Healthcare Corp (NYSE:THC) in the S&P 500 beginning April 15, after shares of the latter crumbled by 42% over the past year. Given that knowledge, investors are bidding up Ulta by roughly 3% now to front-run the mutual funds that have to buy into Ulta on or after the 15th. The number of elite funds in our database long Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) increased by one to 31 quarter-over-quarter as of December 31.

Intercept Pharmaceuticals Inc (NASDAQ:ICPT) shares have been volatile this morning after the FDA’s Gastrointestinal Drugs Advisory Committee voted unanimously to back approval for Intercept’s obeticholic acid for the treatment of primary biliary cholangitis. Shares of Intercept Pharmaceuticals Inc (NASDAQ:ICPT) originally rallied by 5% in pre-market trading, but are now down by 4%. The advisory committee members had some general concerns over the validity of serum alkaline phosphatase (ALP) levels as a surrogate endpoint (SEP), but they concluded that the benefits outweighed the risks. The FDA has a deadline/PDUFA date of May 29 to approve or disapprove the drug. 16 funds that we track held roughly 7.6% of Intercept’s shares at the end of 2015.

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