* Indexes rise: Dow 0.1%, S&P 0.25%, Nasdaq 0.69%

* Atlassian ( TEAM ) surges after Q4 profit, revenue beat

* S&P 500, Dow set for best weekly showing since April

* July nonfarm payrolls at -23,000 versus +80,000 estimate

(Updates after markets open)

By Johann M Cherian and Shashwat Chauhan

Aug 7 (Reuters) - Wall Street's main indexes rose on Friday

after data showed the U.S. economy unexpectedly shed jobs last

month, casting doubt on a potential September interest-rate hike

by the Federal Reserve.

A Labor Department report showed nonfarm payrolls fell

23,000 in July, far below the 80,000 job additions that

economists polled by Reuters were expecting.

"Even with a negative job print, the job market remains

healthy. But it gives the Fed some room to pause in September,"

said Anthony Saglimbene, chief market strategist at Ameriprise

Financial.

"It has seemed like the Fed is pressing more on the

inflation front, but today's numbers may reframe that

conversation and put the labor side of the mandate in focus."

Money market data showed traders pared back expectations for

an interest-rate hike in September, with odds of an increase now

at about 20%, from 55% before the report, according to data

compiled by LSEG.

Under new Chair Kevin Warsh, the U.S. central bank has

offered investors little forward guidance on monetary policy,

sharpening the focus on economic data and commentary from

policymakers.

Payrolls, however, have a tendency to be softer in July, and

economists view the labor market as being in "slow hire, slow

fire" mode.

At 09:58 a.m. ET, the Dow Jones Industrial Average

rose 55.37 points, or 0.10%, to 53,940.47, the S&P 500

gained 18.87 points, or 0.25%, to 7,728.83 and the Nasdaq

Composite added 181.72 points, or 0.69%, to 26,530.07.

Five of the 11 S&P sectors were trading higher, with

consumer discretionary leading gains, while energy

lagged.

Collaboration software maker Atlassian ( TEAM ) jumped 34.5%

in early trading, while chip company Microchip Tech ( MCHP )

advanced 11.4% after both forecast quarterly revenue above

estimates.

The results also lifted broader sectors, with the

Philadelphia chips index up 2.3% and the S&P 500 software

and services index rising 1.3%.

Cybersecurity company Cloudflare ( NET ) also gained 12%

after raising its full-year revenue forecast above estimates.

The main U.S. indexes were headed for strong weekly gains,

with the S&P 500 and the Dow on track for their best week since

April and the Nasdaq set for its biggest advance since May, if

gains hold.

Better-than-expected results from AI-related companies this

earnings season have propelled the Dow and the S&P 500 to fresh

record highs, while helping the Nasdaq recover from a pullback

that had briefly pushed it nearly 10% below its previous peak.

Of the over 400 companies on the S&P 500 that have reported

earnings so far this quarter, more than 85% have beaten

analysts' expectations, above the 68% beat rate seen in a

typical quarter since 1994, according to LSEG I/B/E/S data.

Among other movers, vacation rental company Airbnb ( ABNB )

rose 13.5% after beating second-quarter revenue estimates, while

Trade Desk ( TTD ) dropped 24.8% after the ad-tech firm forecast

third-quarter revenue below expectations.

Advancing issues outnumbered decliners by a 1.95-to-1 ratio

on the NYSE and by a 1.98-to-1 ratio on the Nasdaq.

The S&P 500 posted three new 52-week highs and one new low

while the Nasdaq Composite recorded 71 new highs and 38 new

lows.