No, he should not still be bleeding from the incision, and I can't imagine that blood in his urine is normal either. Get him back to the vet TODAY!
I agree with Jaybay, what you are describing definately requires a recheck by the vet who performed the surgery. The urethra could have been nicked during the surgery.
I would also give your dog Yunan Paiyo, a Chinese herbal formula that stops unwanted hemorrhage. The dose would be one half of a human dose. The herbal formula is available from online sources or at some Chinese markets.