Julie talks with her father about her dilemma regarding whether she should be with Randy or Tommy; she loves Randy, but her friends want her to reunite with Tommy. Steve asks Julie what she wants (she wants to be with Randy, of course). Understanding fully, he then tries to impress on her that it is not a person's exterior that counts, but rather what is inside them, and that she should follow her heart. Julie seems heartened by Steve's advice and thanks him.
Subverted later when Julie reunites with Tommy and tearfully breaks up with Randy when he comes to see her. Randy proves to be just as savvy as Steve when he correctly deduces that Julie has given in to peer pressure.
After he meets Julie again in the bathroom at the party, they agree to go out on a date. He impulsively gives her a quick kiss, in a moment of rare tenderness from Randy.
A small blink-and-you'll-miss-it moment where Fred holds Julie by the arms in an almost protective gesture while his best friend and her boyfriend are fighting.