It does, but it's a lot less impressive than what I'm guessing you're expecting.

When you cast it, the game checks to see whether it hits, based on your current melee to-hit base score (with no bonuses from strength, magic weapons, etc.)

Even if it does hit, it does a completely unimpressive 1d6 worth of damage. No stunning, no turning, no other magical effects. Literally the only advantage it has is that it's technically a ranged attack. But hey, what were you really expecting from a cantrip based on anything earlier than 5e, anyway? Eldritch Blast has completely spoiled you.

No, the points you put directly into CN (or that you get permanently from drinking from certain sources scattered throughout the dungeons) work as intended. This only applies to magical buffs and debuffs, including from neckwear, rings, armor and shields, and books.