Sterling,
Thanks for the suggestions. I went through each step with the exception of booting in Safe Mode, and I still have the same issues. It's interesting because the Magic Mouse and Trackpad both have the same skipping, jumpy issues after a period of time since a restart. Once I restart, the tracking issues go away for at least an hour, but they tend to get progressively worse. I tried turning off the mouse and trackpad individually, but that didn't help.
I'm not sure how I would diagnose the issue in Safe Mode and could use some suggestions. Mail, Chrome, LastPass and AdBlock are the only apps running from the bottom bar, but I also have Dropbox, Norton Security, Carbonite, and Adobe Apps (Lightroom, Photoshop update manager) running in the top bar. I'm sure that there are several other apps running in the background that I don't know about.
The iMac also tends to crash and reboot often, usually at night when I am not using it. Also, when I run "Restart", I usually get a message that the computer shut down unexpectedly and I send a report to Apple. I use the computer an hour or two a day, but I tend to have unexpected crashes every two or three days. All of this seemed to happen with the upgrade to Catalina, but it could be a coincidence.