Shares of jewelers Blue Nile Inc. (NILE) and Fuqi International Inc. (FUQI) appear to be rising on speculation that recent stock toll 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 toll flexibility given that polished diamond prices are down 12 to 15 percent year-over-year. Shares are up 9 percent, trading at about 70 percent of cipher regular volume as of 11:15 Eastern. The upgrade and pricing observation 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 cipher regular volume. — Mike Tarsala
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