10:50pm: The Rockets are getting "no traction" in their efforts to acquire Smith via sign-and-trade, tweets Jonathan Feigen of the Houston Chronicle.
7:16pm: Adrian Wojnarowski of Yahoo! Sports hears the Rockets and Hawks haven't discussed a Smith sign-and-trade. Still, talks could begin soon, a source tells Wojnarowski (Twitter link).
6:16pm: The Rockets and Hawks are working on a sign-and-trade deal that would send Josh Smith to the Rockets, tweets Chris Broussard of ESPN.com, who figures Omer Asik and Jeremy Lin are headed to Atlanta. Presuming Dwight Howard signs with Houston, such a move would give the Rockets a third star to pair with James Harden while facilitating Asik's desire to move on.
It's not clear exactly what kind of contract Smith would get out of the deal, but he could wind up with as much as approximately $74MM over four years in a max deal, with a starting salary of about $17.35MM, though the final max figure won't be known until the July Moratorium ends next week. Asik's and Lin's salaries for next season add up to about $16.7MM, so a max deal for Smith, which he said during the season he'd be seeking, could be in the cards.
Of course, even if the Hawks and Rockets agree to a swap, Smith would have to give his consent. Smith has been contemplating his future since meeting earlier this week with teams including the Pistons, Rockets and Hawks.