Photoshop CS6 Tools and Cursor Issues with Mountain Lion

Am using Photoshop CS6 on iMac 27inch with Mountain Lion. Experiencing inability to use the move tool to place one image on another after extraction. I place the move tool on the previously extracted image and drag it into an new image, but the extracted image does not get placed on the new image. Also, cursor disappears frequently when using Photoshop for extended periods of time.
Anyone having similar problems?

The cursor disappearing is a well known MacOS bug affecting all applications.
Have you installed all the updates for CS6?
And are you dragging from the layers palette, or from document to document?

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