Illustrator CS5: Direct Selection Tool Highlights Object Just by Passing Over It?

This isn't a major issue, but I recently reset my preferences for Illustrator CS5 and now find the Direct Selection Tool (black arrow) is highlighting every single object I pass over. Previously, only once I clicked on an object or text would a bounding box appear. But now whenever I pass my cursor over shapes it highlights the outside path, and when I pass my cursor over text a gray box appears. Here's a screenshot of the gray box issue.

I just want to turn off this setting or reset a preference that was changed. Thanks in advance for any advice!