4kq- Right rear wheel wobble

[griz]

I checked my right rear tire this afternoon and 
found it seperated and bleeding steel out the 
wound. Time for new tire and alignment, OK.
Problem I found is that the wheel pivots on 
the hub. The car is jacked up and placed hands 
at 3 and 9 o'clock applied opposite pressures 
respectively. The play is about 1/8". Is this 
a badly worn bearing or a worn hub ?  
Any ideas ?    TIA,
Dennis