The One With The Truth About London - S7-E16
Continuity mistake: When Joey is reading his speech about all the giving and receiving, Chandler has his legs on the table at the coffee shop. You can see his shoes on the table when they show Joey, but when they change the shot to Chandler his legs are on the floor and crossed. (00:10:55)
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.