The One With Ross's Wedding, part 1 - S4-E23
Plot hole: The wedding is threatened because Ross, Emily, and Monica discover that the location has been torn down a few days early. However, when one plans an event, especially a wedding, one puts down a deposit to hold the location, signs a contract, and has all of that in writing. The church would not have allowed the tear-down to happen early as they'd be in breach of contract for accepting money and then allowing the church to be torn down before the wedding. And if they had broken the contract, Monica would have been screaming about it and demanding a refund.
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.