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Feb. 23, 2017, 5:02 p.m. EST

Private prison stocks jump after Trump official says feds will continue using facilities

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By Jeremy C. Owens

President Donald Trump's attorney general Thursday rescinded a memorandum that would have ended the federal government's use of private prisons, and stocks in companies that provide those services jumped. CoreCivic Inc., formerly Corrections Corp. of America, rose 3.7%, and The GEO Group gained 1.5% in immediate late trading after the move was announced. Both stocks suffered greatly in the wake of the Justice Department's announcement in August that it would phase out using private prisons, which closely followed a Mother Jones investigation detailing life in one of CoreCivic's facilities in Louisiana. CoreCivic took on its new name and slashed staff amid the fallout. Private prison companies rebounded after Trump won the election, however; The GEO Group has gained 98.2% and CoreCivic is up 136.8% since Nov. 8, 2016, even before Thursday afternoon's bump.

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