“I skate to where the puck is going to be, not where it was” — Wayne Gretsky.

1. Presidential 3rd Year — S&P500 performance in third year (1955-2003)

2. Below highlights the 2010 returns (in local currencies) for equity markets around the world — courtesy from the Bespoke Investment Group. As shown, the average country saw its major equity market index gain 15.33% in 2010.

3. Auto sales climb — All automakers except Toyota (TM) enjoyed gains as U.S. sales rose for the 11th consecutive month. December sales were up 11%, equivalent to an annualized sales pace of 12.6M vehicles when seasonal factors are accounted for. Overall, 2010 sales came in at 11.6M vehicles. Analysts believe 2011 sales could reach 13M, an important macro data point for the overall economy. Among December’s highlights: GM (GM) +7.5% to 223,932 vehicles, its best month of 2010. Ford (F) +6.7% to 190,976 vehicles. Chrysler (FIATY.PK) +16% to 100,702 vehicles. Toyota (TM) -5.5% to 177,488 vehicles.
4. FOMC stands by QE2 — Fed officials stood behind their bond purchases as long-term interest rates rose, saying: “While the economic outlook was seen as improving, members generally felt that the change in the outlook was not sufficient to warrant any adjustments to the asset-purchase program.”
5. Gulf spill blamed on BP, industry, regulators — The presidential commission charged with investigating the Gulf of Mexico spill has concluded that everyone is to blame, at least to some degree. The report, which will be released in full next week, slams BP (BP) and two of its contractors, Transocean (RIG) and Halliburton (HAL), for various missteps that led to an avoidable disaster.
6. U.S. inches towards debt limit of $14.3 Trillions — Economists believe the U.S. will hit its $14.3T debt limit by the end of March or sometime in April unless Congress takes action to raise the limit. Hitting the debt ceiling could force shutdowns of federal offices, as happened in 1995, jeopardize federal benefits programs or potentially cause a default on federal debt payments.

The week ahead — Economic data from Econoday.com: