Daydreaming, a homebred New York graded stakes winner for Ogden Mills "Dinny" Phipps, has been retired from racing. The 4-year-old daughter of A.P. Indy finished last in the July 31 Go for Wand Handicap (gr. I) at Saratoga. "She has the start of a medial condylar fracture in her back cannon bone," said trainer Claude R. "Shug" McGaughey. "We don't have to do anything but give her four weeks stall rest and four weeks of walking, but by then it will be too late (to run again in a major race)."Daydreaming won this year's Next Move Handicap (gr. III) and last year's Top Flight Handicap (gr. II) and the Indiana Breeders' Cup Oaks (gr. III), registering a 108 Beyer Speed Figure in the Oaks."Her race in the Indiana Oaks was big, when she beat Capeside Lady and Stellar Jayne, " McGaughey said.Daydreaming, who placed in four New York graded stakes, won seven of 16 races and earned $696,680 in three years of racing. Her stakes-placings included efforts in the Gazelle Handicap (gr. I) and Spinaway Stakes (gr. I).Daydreaming is a full sister to graded winner Accelerator and to the dam of grade II winner Lord of the Game (by Saint Ballado). Her dam, graded winner Get Lucky (by Mr. Prospector), is out of grade I winner Dance Number.McGaughey plans to send Daydreaming to the Hancock family's Claiborne Farm near Paris, Ky., this weekend. Breeding plans will be announced later.