Erratic cursor while using Chrome

A couple days ago I started having some erratic trackpad issues while using Chrome, and they started to bleed over into my regular desktop computing. I reviewed all the posts on the subject that were contained in the support communities (cleaned my pad, tried using a different mouse, changed batteries, removed the USB 3.0, verified my bluetooth settings, removed all the potential electronics that may be causing interference, and started in safe mode) and verified that all the previously mentioned issues were not the culprit. Here is basically what is still happening: I will open Chrome and things will be fine, after 15-20min my trackpad will start randomly highlighting selections and lose the right/left click capability; windows will freeze and although I can still move my cursor, I lose specific controls. There is also the issue of typing into a blank box on a website, the space bar will erase the entire line and make me re-type. It doesn't happen all the time and if I use Safari, without opening Chrome, like I am now, I don't seem to have any issues. Another piece of the puzzle is that when I boot in Safe Mode there are horizontal lines that run up the screen (kind of like a horizontal shutter effect in Powerpoint), these also show up in each tab when I open Chrome in Safe mode. I have Sophos and Symantec Endpoint running and there hasn't been any issues discovered. I am at a loss for what else to try before hauling my iMac down to the genius bar or re-installing the OS (which I'd really rather not do). Please help...

iMac (21.5-inch, Mid 2011)

Processor 2.7 GHz Intel Core i5

Memory 12 GB 1333 MHz DDR3

OS X 10.10.2

Bluetooth trackpad and keyboard