Photoshop :: Text Looks Selected And No 'jpg' Option

Whenever I add text, there's a little black and white border around each letter. It looks like it's highlighted, but it's like that even after I save it. Another thing is that while I am doing anything to the picture, nt just text, the colors are inverted.

if i try to save any kind of a document, there is no 'jpg' option. I think there are some other options missing, too.

I just used it last week, and I could save it as jpg and use text at that point.