Of course it does. As you cannot recognize them as being transcendent of physical reality. Or of being a higher purpose then the fulfillment of physical reality. And they are not mere "emotions", they are ideals. Just as the mind is not the brain. But again, this is something you are unwilling and perhaps incapable of recognizing.
I just don't see the evidence that is the case. I can *imagine* it. I can *fantasize* about it. I can *speculate* about it. But there is no *evidence* of it, so it isn't something I base my decisions upon.
And no, being an atheist does NOT mean these notions are foreign. They are universal human *emotions*, some even shared by other great apes. As shared *values*, they are common principles upon which to base morality. And because these values are (mostly) shared, the *consequences* of adopting them are also shared. This makes for a value system more likely to lead to human fulfillment. And that is a wonderful consequence.
I find it sad that you can only value those things that are not physical. I find it sad that you seem to require more than the wonders of the world around us for you to feel valued. I find it sad that your morality has to be based on some 'transcendental ideals' as opposed to simply what works for us humans.
Morality is an ethical assessment of behavior. The question would be what is the source of our chosen ethical imperatives. Most materialists think it's all just physical mechanics. Most of the rest of us consider there to be a higher (transcendent) calling, or purpose. Although we do so by faith, not fact.
Whether an action is ethical or moral depends on its consequences in the lives of actual people. If you consider that to be just 'physical mechanics', then I find that to be very sad and a bit terrifying.
As I see it, *we* determine purpose. It isn't something 'outside' of us, but rather *our* values and goals that produce purpose. Some goals are shared with other species: survival, food, shelter, companionship. Others seem to be unique to humans: knowledge, curiosity, music, art, literature. These are *human* endeavors and goals. They are part of what makes us distinct as a species.
But that doesn't make them anything other than physically based. It seems to me that you vastly underestimate the variety and awesomeness of physical existence.