NEW YORK ( TheStreet) -- Retailers are in the green as initial jobless claims improve and Fed Chairman Ben Bernanke's testimony on interest rates is spurring the markets.

The S&P Retail Index is climbing 1.8% to 454.08 in afternoon trading, led up by big gainers like Lululemon Athletica ( LULU) and Amazon ( AMZN).

Lululemon topped the New York Stock Exchange's list of biggest advancers after it reported fourth-quarter profit that nearly tripled and a 2010 forecast that topped Wall Street's expectations.

As a result, shares of Lululemon are surging 11.7% to $40.26 in afternoon trading.

Best Buy ( BBY) is also moving higher following its better-than-expected fourth-quarter earnings report and an optimistic 2010 outlook.

During the quarter, the electronics retailer received a boost from sales of notebook computers, flat-panel televisions and mobile phones.

Shares of Best Buy are rising 5.1% to $43.27 and are leading up other electronics retailers. Amazon is jumping 6% to $135.79 while HHGregg ( HGG) is soaring 7.1% to $26.89.

Fred's ( FRED) is increasing 3.1% to $11.70, as its fourth-quarter profit more than doubled. During the quarter, Fred'sprofit reached $5.7 million, or 15 cents a share. Fred's revenue rose 1% to $473.1 million, while same-store sales slipped 0.9%.

eBay ( EBAY), meanwhile, is up 3% to $27.77 after it was upgraded to outperform by Credit Suisse, citing its PayPal business. "We have increased our long-run profit margin assumptions for PayPal, which we now expect to reach 26.5% by 2015 vs. 18% in 2010," analyst Spencer Wang wrote in a note.

Wang also upped his price target on the stock to $32 from $25.
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Other notable gainers include Netflix ( NFLX), which is increasing 2.8% to $74.42, and American Apparel ( APP), which is up 2.8% to $3.72 heading into its fourth-quarter earnings results, which are due out after the close.

-- Reported by Jeanine Poggi in New York.


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