Can macbook pro (2016) support two displays on single port?
As of today you Cannot.
We have a brand new Late 2016 Macbook Pro and 2 Apple/LG 21.5 USB-C 4K monitors. Daisy-chaining/MST does not work. We are using the monitors and nothing else with the original cables. Only way to get both to work is to connect each to individual USB-C ports on the MBP. Sad but true.