Created attachment 219551 [details]
kernel config used to build the kernel

cat /sys/module/wacom_w8001/drivers/serio\:w8001/description 
Wacom W8001 serial touchscreen driver
root@EliteBook:/sys/module/wacom_w8001/drivers/serio:w8001#

root@EliteBook:~# xsetwacom --list devicesWacom Serial Penabled 2FG Touchscreen Pen stylus	id: 14	type: STYLUS    
Wacom Serial Penabled 2FG Touchscreen Finger touch	id: 15	type: TOUCH     
Wacom Serial Penabled 2FG Touchscreen Pen eraser	id: 17	type: ERASER    
root@EliteBook:~#

Machine: HP EliteBook 2760p.
Ubuntu 16.04
Kernel version: 4.6.2 (Same with stock Ubuntu kernel)

Problems:

I tried to sue hand touch on the screen and the cursor does not move or take event (selection etc.).

In the mean time if I use mouse (touch pad or external USB mouse) I can still move the cursor and do all actions.

If I use the stylus pen and touch the screen, it works like normal.

If I downgrade the kernel version to 4.0.9 all things work.

Please let me know any other information you may need.

Kernel config is attached.