Shares of jewelers Blue Nile Inc. (NILE) and Fuqi International Inc. (FUQI) appear to be rising on speculation that recent stock price declines on fears of slack demand for luxury items may be overdone. Citigroup upgraded shares of Blue Nile to Buy from Hold, citing reasonable earnings estimates, citing in part greater price flexibility given that lustrous diamond prices are down 12 to 15 percent year-over-year. Shares are up 9 percent, trading at about 70 percent of average regular intensity as of 11:15 Eastern. The upgrade and pricing attending also may be benefiting small-cap play Fuqi, based in China. Its shares are up more than 7 percent to $16.86, already trading more than its average regular volume. — Mike Tarsala
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