Yes, but not necessarily the same way we experience them. Dogs and cats don't have the facial muscles to smile even if they wanted to and show pleasure in other ways.
Consequence of being with humans for 30,000 years. Dogs can read human tone, facial, and body language better than any other animal, including our closest relatives, chimpanzees.
I'm a cat lover. It's true they can be assholes, but they can be affectionate as well. They're not nearly as domesticated as dogs are since not only have we only been living around them about a third as long, but they only really started living indoors with us in the last hundred years or so. They're semi-domesticated.