The two private-prison companies in the United States on Wednesday were reaping the benefits of a Donald Trump victory.

Stock for CoreCivic, formerly known as Corrections Corporation of America (CCA), was up 48 percent as of 2 p.m. Eastern time. GEO Group rose 21 percent.


Overall, U.S. markets were higher mid-day Wednesday, even though futures overnight were sharply down, by as much as 4 percent, as it became clear that Trump was winning.

The two prison companies have been struggling since August when the Department of Justice announced the Bureau of Prisons would phase out its contracts with with them to house federal inmates. The Department of Homeland Security then said it would re-evaluate how it works with CCA and GEO Group.

Following the announcements at the end of August, CCA had lost $1.2 billion in market capitalization and the GEO Group was out $917 million.

The gains for the two companies now likely stem from Trump’s proposed immigration policies and openness to using private detention firms. In June, the Republican told MSNBC, “I do think we can do a lot of privatizations and private prisons. It seems to work a lot better.”

In June, Mother Jones posted a scathing investigative report on private prisons after one of its reporters, Shane Bauer, worked for four months as a private prison guard. However, federal officials would not comment on if their decision to reevaluate private prison contracts was a result of the report.

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