The One Where Eddie Moves In - S2-E17
Continuity mistake: In the previous episode, Joey tells Chandler that the bathroom in his new apartment has mirrors on both sides of the toilet. But in this episode, when we see the toilet from the side while Joey gives the gang a tour, it is clear that the wall is devoid of mirrors.
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.