CoreCivic, Geo rise after DOJ cancels Obama-era private prison order

Private prison owners Geo Group (GEO) and CoreCivic (CXW) jumped in late trading Thursday after recently-appointed Attorney General Jeff Sessions rescinded an Obama-era memorandum seeking to limit federal use of private corrections facilities. SESSIONS RESCINDS PRIVATE PRISON LIMITATION: In a February 21 memorandum to the Bureau of Prisons obtained by media outlets Thursday, Attorney General Jeff Sessions stated, "I hereby rescind the memorandum dated August 18, 2016 sent to you by former Deputy Attorney General Sally Q. Yates, entitled 'Reducing our Use of Private Prisons.'" Sessions added that "the memorandum changed long-standing policy and practice, and impaired the Bureau's ability to meet the future needs of the federal correctional system. There, I direct the Bureau to return to its previous approach." PRICE ACTION: Shares of Geo Group and CoreCivic are up 1.75% and 3.5% in after-hours trading, respectively.