Williams, 32, signed a one-year deal with the Timberwolves in the offseason. He scored a franchise-record 52 points in January against the Pacers and is averaging 12.2 points and 6.4 assists while shooting 40.3 percent from the field this season.
The Hornets needed help in the backcourt after point guard Kemba Walker underwent surgery for a torn lateral meniscus in his left knee. He is expected to be out of the lineup until March.
Daniels was traded to the Timberwolves from the Rockets as part of the Corey Brewer trade in December. The 23-year-old is averaging 2.8 points this season while shooting just 32.1 percent from the field. He played a key role in the playoffs last season for the Rockets, including a 17-point performance in Game 3 of the team's first round series against the Trail Blazers.
After winning 43 games last season, the Hornets are 22-29 and the No. 7 seed in the Eastern Conference.
In return for Williams and Daniels, the Timberwolves acquired the 30-year-old Neal, who is in the final season of his contract. He is averaging 9.6 points on 35.9 percent shooting from the field and 29.3 percent from beyond the arc.
Minnesota is in last place in the Western Conference with an 11-41 record.
- Paul Palladino