The dynamics of utility stocks amidst adversity of Hurricane Sandy.

• Hurricane Sandy's impact on utility industry liquidity and trading. • Utility stocks negative effects compared to non-utility stocks. • Natural Gas Distribution segment prolonged post-hurricane liquidity challenges. This study examines the impact of Hurricane Sandy on liquidity and information-based trading in the utility industry. Compared with non-utility stocks, Hurricane Sandy has a significant adverse impact, implying higher trading costs and instability for investors during this disaster. Segmenting NAICS codes reveals a more pronounced impact on the liquidity of Natural Gas Distribution and Water, Sewage, and Other Systems. While liquidity in the Electric Power Generation and Water segments returns to normal levels one month after the hurricane, the Natural Gas Distribution segment continues to face liquidity challenges, presumably due to lingering infrastructure damage and supply chain disruptions. [ABSTRACT FROM AUTHOR]