The Messenger of Allah ﷺ said, "Narrate from the Children of Israil, and there is no harm in doing so."
قال رسول الله ﷺ قال: حدثوا عن بني إسرائيل ولا حرج.
Abu Dawud (3662) and Ahmad (10130) both narrated it through the hadith of Muhammad bin Amr, who said, "Abu Salama narrated to us, from Abu Hurairah," and he mentioned it. Its chain is hasan because of Muhammad bin Amr, who is Ibn Alqama Laythi, for his hadith is hasan.Once the permissibility of narrating from the People of the Book is established, this applies to what could plausibly be true. But whatever is known or believed to be false, because it contradicts the truth we hold from the infallible one, is to be set aside and rejected, and not given any attention. So said Hafiz bin Kathir, in Bidaya wan-Nihaya (3/34).