Shares of Walmart Inc. (WMT) and Microsoft Corp. (MSFT) fell Monday, enough to pace the Dow Jones Industrial Average's premarket decliners, after China's move to tighten technology export rules threw a wrench in the companies' potential acquisition of TikTok's U.S. business. Walmart's stock dropped 1.9% and Microsoft shares shed 1.0%. The implied price declines would shave roughly 32 points off the Dow's price, while Dow futures edged up 2 points. China unveiled Friday export restrictions ( ) covering such computing and data processing technologies as text analysis, content recommendation, speech modeling and voice-recognition, saying technologies on the list can't be exported without a license from local commerce authorities. "This is clearly directed at slowing down ByteDance's deal negotiations in this game of high-stakes poker," wrote Wedbush analyst Dan Ives in a note to clients. "With TikTok's key algorithm at play, ByteDance/TikTok will likely now need to go through a licensing procedure around the need to transfer software code from China to the US (likely Redmond)," Ives wrote. Walmart and Microsoft were reportedly teaming up to make a bid ( ) for video sharing site TikTok.
-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 31, 2020 08:56 ET (12:56 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.