The wet part just looks like granulation tissue that should dry out, just keep it as dry as possible (fold diaper to under umbilical cord so it's not covering that area, don't get the area wet with bathing). The redness could be a sign of an infection, but also sometimes the dried/falling off bit of the cord can get caught on things and pull causing the redness. Try to make sure it's not getting pulled when you change outfits, place in the car seat, etc. Also make sure baby is only sleeping on the back. It's hard but try not to touch it and let it dry out on its own.Definitely call your doctor or seek medical help if your baby gets a fever, there is any streaky redness onto the abdomen, pus is visibly oozing out or there is a change in his behavior (overly sleepy, not taking feeds, etc).Doesn't look like anything major right now, but definitely keep an eye on it. Redness should subside if it's just from manipulation or pulling if you do the above things. Good luck! :)