What does Islam say about taking Jews or Christians as friends? Quote the necessary Ayahs and Ahadith?

Praise be to Allah, the Lord of the Worlds; and may His blessings and peace be upon our Prophet Muhammad and upon all his Family and Companions.

It is unlawful for the Muslim to befriend disbelievers (Jews, Christians or others) in an affective manner as Allah Says (interpretation of meaning): {You (O Muhammad SAW) will not find any people who believe in Allâh and the Last Day, making friendship with those who oppose Allâh and His Messenger (Muhammad SAW), even though they were their fathers, or their sons, or their brothers, or their kindred (people). For such He has written Faith in their hearts, and strengthened them with Rûh (proofs, light and true guidance) from Himself. And We will admit them to Gardens (Paradise) under which rivers flow, to dwell therein (forever). Allâh is pleased with them, and they with Him. They are the Party of Allâh. Verily, it is the Party of Allâh that will be the successful.} [58: 22]. Allah also Says (interpretation of meaning): {O you who believe! Take not My enemies and your enemies (i.e. disbelievers and polytheists, etc.) as friends, showing affection towards them, while they have disbelieved in what has come to you of the truth (i.e. Islâmic Monotheism, this Qur'ân, and Muhammad SAW), … And whosoever of you (Muslims) does that, then indeed he has gone (far) astray, (away) from the Straight Path.} [60: 1].
Liking the disbelievers and being on their side is a form of disbelief. Allah Says (interpretation of meaning): {And had they believed in Allâh, and in the Prophet (Muhammad SAW) and in what has been revealed to him, never would they have taken them (the disbelievers) as Auliyâ' (protectors and helpers), but many of them are the Fâsiqûn (rebellious, disobedient to Allâh).} [5: 81].
So, the Muslim should beware of having affection for non-believing people in his heart as this could lead to his destruction. But dealing with them in matters that are needed by the Muslim community in this life is lawful. The Messenger (Sallallahu Alaihi wa Sallam) of Allah bought from Jews and his armour was mortgaged with a Jew when he (the Prophet (Sallallahu Alaihi wa Sallam)) died.
Allah, The Almighty Says: {Allâh does not forbid you to deal justly and kindly with those who fought not against you on account of religion and did not drive you out of your homes. Verily, Allâh loves those who deal with equity.} [60: 8].
Allah knows best.