* Oil prices slide more than 3 pct to near $64 a barrel

* U.S. service sector contracts at slower pace in June

* Dow off 0.4 pct, S&P off 0.7 pct, Nasdaq off 1.3 pct

* For up-to-the-minute market news click [STXNEWS/US] (Updates to early afternoon)

By Ryan Vlastelica

NEW YORK, July 6 (Reuters) - U.S. stock indexes fell on Monday as investor concerns about the potential strength and timing of an economic recovery weighed on stocks and pressured crude oil prices.

While data released earlier on Monday showed that the U.S. service sector contracted in June at a slower pace than expected, market sentiment continued to be driven by last week's worse-than-expected jobs report. For details, see [ID:nWEN0263]

On Thursday, the U.S. Labor Department reported a decline of 467,000 in nonfarm payrolls, nearly 100,000 more than expected.

"We had a little downdraft late last week with the jobs report and this is a continuation of that," said Giri Cherukuri, head trader at OakBrook Investments LLC in Lisle, Illinois.