The Prophet once said that the Jews have divided into 71 sects, the Christians into 72 sects, and the Muslims will divide into 73 sects.  And the Quran says in 30:32, "Those who split up their Religion, and become (mere) Sects,- each party rejoicing in that which is with itself!

And in
6:159, "As for those who divide their religion and break up into sects, thou hast no part in them in the least: their affair is with Allah: He will in the end tell them the truth of all that they did."

It is very important for Muslims to understand that the Jews are not all one group with all the same beliefs.  As the Qur'an says, "You would think they were united, but their hearts are divided" [
59:14]. True Judaism is based on the Torah, and only Orthodox Jews keep to the Torah. 

There are other groups that have deviated from the Torah in making up their own beliefs and rationals for not following the Torah and they live their life purely based on their own opinions and not on what God has revealed to Moses in the Holy Torah.  Some of these deviant sects are the Reform, Reconstructionist, and the Conservative movements.  They pick and choose what they want to follow from the Torah and leave the rest. The first of these sects was the
Reform movement which was started in the early 1800's in Germany by a man by the name of Israel Jacobson.  He was instrumental in christianizing Judaism, by maintaining that Jews should follow the ethics of Judaism but should get rid of all things that make them stand out as Jews, such as the Dietary laws, the Sabbath, the unique dress, praying in Hebrew, etc.  Then came another secular movement, Zionism (Jewish nationalism) in the late 1800's, founded by Theodor Herzl

As the
Quran 2:85 says, "After this it is ye, the same people, who slay among yourselves, and banish a party of you from their homes; assist (Their enemies) against them, in guilt and rancour; and if they come to you as captives, ye ransom them, though it was not lawful for you to banish them. Then is it only a part of the Book that ye believe in, and do ye reject the rest? but what is the reward for those among you who behave like this but disgrace in this life?- and on the Day of Judgment they shall be consigned to the most grievous penalty. For Allah is not unmindful of what ye do."

The point of this is that when Allah talks about the Jews or Children of Israel in the Quran in a negative way, he is not referring to all of them, he is referring to the disbelievers amongst them who choose not to follow the Torah.  For example in the Quran, Allah talks how he cursed those amongst the Children of Israel who would not follow the Sabbath.  Allah quite specifically points out that he is only cursing the rebellious of the Children of Israel, not all of them. For in the Holy Quran 3:113 it says, "Not all of them are alike: Of the People of the Book are a portion that stand (For the right): They rehearse the Signs of Allah all night long, and they prostrate themselves in adoration."

So in conclusion it is important that when Muslims talk about Jews, they do not stereotype and talk of them as if they are all the same, some are righteous and follow the Torah, and some are rebellious and follow after their own desires.