It sounds like he could have Gastroenteritis.It is an inflamation of the stomache lining and they will have bloody stools.My Peke sometimes gets it when he is stressed,But it can also be brought on by several different things.I would try to get him seen by another vet like Ginger said.Keep us posted and hope he gets feeling better soon.
Has he been vaccinated? And is fully up to date on his shots? If not, or if you only have someone else's word for it (ie the breeder or person you got him from) that he has had his shots....then this could possibly be Parvo virus.
He needs to see the vet urgently if this could be the case.
If he's had his shots, then I am not sure what could be the cause, except possibly eating very unsuitable food. Chocolate for example can cause some quite violent and nasty diarrhea. He may have raided trash, or got into some food behind your back.
But I would say a visit to the vet is the best thing.