The One Where Underdog Gets Away - S1-E9
Revealing mistake: Whenever Monica's apartment is shot from the point of view of the balcony looking in, fake walls have to be put up across the room to cover the open space (since there is no wall there usually). When the friends are looking out the window at Ugly Naked Guy and his girlfriend in this episode, you can see that the rear wall does not extend nearly far enough - there is a large black space behind Monica. (00:19:25)
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.