The One With All The Resolutions - S5-E11
Character mistake: In one of the scenes where Phoebe is teaching Joey guitar, she asks him to demonstrate the "Iceberg" chord. To refresh his memory, Joey refers to the chord as "G Sharp." In reality, the only way to play a G Sharp chord is with a barre chord, and as such the fingering is not exclusive to it.
Answer: Usually by the seventh night of Hanukkah you don't know what to get the other person, and you will probably resort to getting the other person something insignificant. Chandler is basically saying that the pen is a stupid gift.