Biden Move Wallops Private Prison Stocks

Administration won't be renewing contracts
By Newser Editors and Wire Services
Posted Jan 26, 2021 4:02 PM CST
Private Prison Stocks Were Among Market's Biggest Losers
Pedestrians pass the New York Stock Exchange.   (AP Photo/John Minchillo, File)

Stocks ended lower on Wall Street Tuesday after spending most of the day in the red. The S&P 500 lost 0.15%, pulled down by losses in banks and industrial companies. Gains for some Big Tech companies like Amazon and Facebook helped keep the losses in check. Small-company stocks fell more than other parts of the market. Shares in GEO Group and CoreCivic, which operate prisons, slumped following news that the Biden administration will not be renewing federal government contracts with private prison operators, the AP reports. GEO Group slid 12.7%, while CoreCivic dropped 6.6%. The Dow Jones Industrial Average fell 22.96 points, or 0.07%, to 30,937.04. The S&P 500 dipped 5.74 points to 3,849.62, and the Nasdaq, which hit a record high Monday, fell 9.95 points, or 0.07%, to 13,626.07.

Investors are in the midst of quarterly earnings reporting season for U.S. companies, and this is the busiest week so far. Dozens of large companies are reporting this week from all parts of the economy, including American Express, J&J, Apple, GE, and others. Blue chip companies like Johnson & Johnson and General Electric rose Tuesday after reporting better-than-expected results. "The major theme, not only today but this week, is earnings season," said Angelo Kourkafas, investment strategist at Edward Jones. "The early results are encouraging." American Express fell 3.7% despite reporting stronger-than-expected earnings. The company's cardholders continue to postpone travel, entertainment, and dining out due to the pandemic, which has cut into its bottom line.

(Read more stock market stories.)

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