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 polished diamond prices are down 12 to 15 proportionality year-over-year. Shares are up 9 percent, trading at about 70 proportionality of average daily volume as of 11:15 Eastern. The upgrade and pricing observation also may be benefiting small-cap play Fuqi, supported in China. Its shares are up more than 7 proportionality to $16.86, already trading more than its average daily volume. — Mike Tarsala
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